Schneider Electric is energy management and automation industry that was formed during the year 1836 and is headquartered in France. It is a popular French multinational corporation that focuses on automation solutions, energy management, software, hardware, and services. It is the parent company of Square D, APC, Pelco, and others.
Over the years it has about 20,000 patents that are either active or in any application across the globe. The company has its business operations in about 100 countries and has about 144,000 employees working for them. Schneider Electric creates a high-quality infrastructure that is based on green technology. The company is considered as a global specialist in energy management. It mainly focuses to make energy safe, reliable, productive, efficient, and green.
Let us discuss the SWOT analysis of Schneider Electric.
Strengths in the SWOT analysis of Schneider Electric
Innovative products –Schneider Electric has a successful track of innovative products. The company has developed various products like low voltage products and systems, building automation and control, medium voltage distribution and grid automation, critical power, cooling and racks, and many more.
International presence – The Company has its international presence across the globe having about 31 manufacturing units that are spread across many countries.
Goes Green – Schneider Electric is a developer of green energy. It is greatly expanded into green energy segment.
A strong brand value – The Company’s brand is very strong. It provides its products to its customers with a premium price thereby also offering the high-quality product which gets reflected in the brand.
Huge investment in R&D – Schneider Electric has made a huge investment in R&D and makes use of superior technology that has allowed the company to meet the requirements of the customer in unique ways.
Awards and Recognition – Having being inspired by the customers on daily basis, the company finds new ways to empower people to perform more with less. Schneider Electric is honored with many awards and recognition at the international level in areas like reliability, connectivity, safety, efficiency, and sustainability. Few awards that the company is honored with are related to health and wellness, energy management and automation, employer award and many more.
Strong distribution network – Schneider Electric has a strong distribution network that reaches to the majority of the potential market.
Weaknesses in the SWOT analysis of Schneider Electric
Acquisitions – Schneider Electric has had quite a few bad acquisitions. This has led to increase the cost and reduce the value of combined businesses. This also has impacted the main business and the merge culture. Such improper acquisitions can lower productivity.
Shortage of liquidity – Due to a shortage of liquidity, the company’s margin does not improve in the shorter term.
No proper financial planning – Bad debts and various financial conditions of the customers has affected the profit of the company.
Current challenges – At present, the company is not able to deal with the challenges of the new entrants in this segment which has led to losing the market share in the niche category. Schneider Electric should be able to build an internal feedback mechanism that comes directly from the sales team on the ground to encounter these challenges.
Opportunities in the SWOT analysis of Schneider Electric
Customized products – By introducing various new services and customized products can help the company to meet the requirements of the customers. This will also enable the business to scale up and also to have a strong customer base.
Regulations – The regulations being relaxed will, however, allow Schneider Electric to be more advantageous to the company as well as the customers.
New technology – The origin of new technology will provide an opportunity for the company to provide more products to the market. This will also enable them to have a strong loyal customer providing great service.
Threats in the SWOT analysis of Schneider Electric
Competitor’s new technology – New technology that is produced by the competitor or market disruptor can be a serious threat to the business growth of Schneider Electric.
Irregular supply of innovative products – Over the years, the company has developed many products that are in response to the development of its competitors. The supply of new products is not regular leading to low-income markets.