- External Analysis: (use outside research to support here)
- Porter’s Five Forces:
- Current Rivalry
- Opportunities
- Has a wider customer base than the closest competitors like the Watts Water Technologies, Inc.
- It is a leading company in the industry, and has established trust with the stakeholders, an advantage over competitors.
- Threats
- The high market competition.
- Strong competitors like KWH AND Pipelife.
- Potential Entrants
- Opportunities
- The investments metal manufacturing sector is on a decreasing trend in Finland, leaving the company with a wide market to enjoy.
- The company has already established a wide customer base, shielding new entrants in the market.
- Threats
- Increased investments in the mining sector in Finland
- Obvious direct competitors like KWH.
- Buyer Power
- Opportunities
- A Well, widely spread geographical market, especially in Germany.
- Has many subsidiaries in over 30 countries.
- Threats
- Sometimes the end-users are curtailed by the wholesalers, middlemen.
- Inability to solve some customers’ problems.
- Supplier Power
- Opportunities
- The company has a well-established supplier network
- The increase in the overall investments in the pulp and paper industry is increasing the supplier base.
- Threats
- Sharing suppliers with the increasing firms in the industry.
- Competition for suppliers with rival companies.
- Substitute Products
- Opportunities
- The company has diversified its products to counter substitutes.
- Ability to offer specialized goods to consumers.
- Threats
- Substitute products from rival companies.
- Customers tend to develop a taste for new products from competitors.
- General External Environment:
- Economic
- Opportunities
- Can increase the market share in the industrial building sector.
- The company can capitalize on the growing investments in the segments
- Threats
- The economic downturn, especially in 2009.
- Instability of the financial system and the Eurozone crisis.
- Demographic
- Opportunities
- The company has a large demographic base in Europe and North America.
- The populous Finland offers a ready market.
- Threats
- Due to globalization, some workers’ skills do not match the company’s needs.
- The high demographic dependency ratio affects the working population.
- Socio-Cultural
- Opportunities
- Advantage of diversity of the culturally-diverse Finnish population
- Language advantage in the regions it markets its products.
- Threats
- Cultural conflicts affect the customer base and, hence, the company.
- Language differences may affect the company’s penetration of the potential market.
- Political-Legal
- Opportunities
- Finland is an innovative-friendly country. The mother country has agreements with regional countries, an opportunity for the firm to expand its markets.
- The legal system of Finland is very transparent
- Threats
- Political instability in neighboring countries affects the company, since Finland is highly dependent on exports.
- Debt-servicing problems between Finland and Greece affects the company.
- Technological
- Opportunities
- The mother country (Finland) has a very high level of intellectual property and is a leading country in technological innovativeness. The company can take advantage of this.
- The company can take advantage of funding from the Finnish Agency for Technology and Innovation.
- Threats
- Failure of Finland to file patents can be a threat to the company.
- The sector is slow to adapt to the high demands with technological changes.
- Internal Analysis: (use ‘insider’ contacts to support here)
- Strategic Managers
- Strengths
- Highly competent managers
- Managers have demonstrated high-level decision-making skills
- Weaknesses
- Gender inequality in the team denies the company the diversity advantage.
- Sometimes the company suffers due to conflicting roles between managers at the same level.
- Corporate Structure
- Strengths
- A very organized company structure headed by a CEO.
- Very effective internal control system (Uponor, 2014).
- Weaknesses
- Bureaucratic nature delays operations
- Complicated structure due to the organization’s vastness.
- Corporate Culture
- Strengths
- A strong ability to follow new developments and cost-effectiveness.
- The company boasts of an effective organizational culture.
- Weaknesses
- Organizational sub-culture challenges due to the company’s multi-national nature.
- Challenges of uniting many sub-cultures.
- Production-Operations
- Strengths
- Strong expertise in the plastic industry
- The company has adequate capital
- Weaknesses
- The vastness of the company makes the production process tedious.
- Many decentralized units make smooth operations difficult.
- Marketing
- Strengths
- Direct contact with a products end-users.
- Markets directly to contractors
- Weaknesses
- Lack of information on the current customers in the industrial building market
- The company lacks the ability to convert its pioneer state into a market competitive advantage
- R&D
- Strengths
- Huge investment in research and development
- The ability to extract information from end-users.
- Weaknesses
- Complex distribution networks limit the company’s potential to perform customer analysis.
- It’s hard to estimate the sales generated in a complex industry, hence unreliable research data.
- HR Management
- Strengths
- Strong human resource management skills.
- The company has a large pool of experienced managers.
- Weaknesses
- The organization is too big to manage effectively.
- The diversity of the employees hampers smooth management.
- Info Systems
- Strengths
- Well-updated modern information systems.
- Digitalized marketing systems.
- Weaknesses
- Inadequate information when they sell through wholesalers as opposed to end-user directly.
- The company has at times experienced poor handling of information due to its vastness.
Reference
Uponor. (2014). About us. Retrieved from http://www.uponor.com/
Need assistance with this?