UTC-SWOT - Lecture notes 1 PDF

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UTC SWOT analysis...

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Company Analysis of United Technologies For doing the company analysis of UTC we are using the SWOT analysis techniques analysis is a deliberate technique carried out to analyze the current system and to analyze the internal and external environment, which provides the edge to the organization to sustain in the competitive market. In SWOT analysis the major factors assessed were manpower, machines, money and funding, and the achievements and deliverables are studied. Strengths

Weakness

1. Strong management team

1. Over leverage of financial position

2. Innovative culture

2. Lack of proper monitoring.

3. Pricing power

3. Fund recovering

4. Loyal customer

4. Weak supply chain

5. Cost advantage

5. Bad accusations

6. Unique and diversified products

6. Lack of customized products

7. Worldwide presence

7. Dependency 8. High rate of staff turnover

Opportunities

9. Non-unified Marketing strategy. Threats

1. Accusations synergies

1. High rate of competition

2. Fragmented market

2. Defense sector threat.

3. New services/Products

3. External changes

4. International expansions

4. Exchange rate fluctuations

5. Innovation

5. Importers (Lower cost compotator)

6. Creating positive outlook

6. Price wars 7. Product substitution 8. Supplier Dependency 9. Maturing categories, products, or services

Here the points are elaborated with relevant details.

Strength  Strong management team: United Technologies has one of the most dependable and valuable team members on their management team. Their CEO Gregory Hayes tries to take up to the problems and solve them as soon as possible. The other people like Akhil Johri, Michael R. Dumais are also good leaders on the management team. Robust research and development capabilities with a workforce exceeding 200,000 employees.

 Innovative culture: The culture inside the United Technologies is innovative in nature. Like in the United Technologies all of the employees are allowed to share their innovative idea to the management. They are encouraged to do so and get rewarded if the idea is that much helpful for the company. That makes the working culture in the United Technologies more innovative.

 Pricing power: United Technologies manufacture products for the aerospace, building and automotive industry. It has production capability for defense equipment as well so as they are working with the defense mechanism so they can charge high amount from their customers.

 Loyal customer: The company has a 16000 plus registered customer agents accounts who are loyal and make frequent purchase form the company.

 Cost advantage: Industry recognition and one of the largest coagulometers in US. Which makes it very easy for them to sustain the economics of scale, thus having the cost advantage. The sub companies are set up in a way that they complement each other and make UTC a one stop shop location for industrial building system and aerospace and propulsion fields.

 Unique and Diversified Products: They have unique products water mist fire protection technology, environmental controlling units, unique management software process that works as a strength for them. With such a diverse array of products UTC has virtually no competitors that can offer what UTC offers as a whole.

 Worldwide presence: Facilities existing in more than 70 countries and presence in 180 countries. Joint ventures a strategically selected and located to spark interest in other nations.

Weakness  Over leverage of Financial position: The company United Technologies has a good financial leverage over others, but they try to over leverage that financial position sometimes. Like they charge high and high price form the existing customer which is not the customer retention process. They act like that they don’t case as long as their product is sold. Customer preferences does not matter to them very much.

 Lack of proper monitoring: UTC is a massive conglomerate with many moving parts, add that to the fact that it is spread out across the globe and it becomes a very hard company to monitor.

 Fund Recovering: United Technologies Has many funds in different countries that is hard to get to due to the expense of taxes.

 Weak supply chain: Their supply chain management is pretty weak as a huge company. Their supplier sometimes doesn’t deliver the raw materials at time that delays the production process.

There is a gap of supplier and the United technologies supply chain management department which casing a great deal for them.

 Bad accusations: Different case analysis shows that accusations like Rockwell Colleens cost them a lot of money which could be done in a different way in less cost.

 Lack of customized products: UTC products can lose value in the eyes of the customer. They may prefer to go with a company who specializes in the product they desire.

 Dependence: The company is huge but they only depend on the profits and stocks of US. This heavy dependence can be a concern.

 High rate of Staff Turnover: Study shows that their stuff turnover is pretty high, so there must be a problem with their employee retaining process.

 Non-unified Marketing strategy: UTC provides not set structure for marketing to its sub company.

Opportunities  Accusations synergies: Synergy is often cited as the force that allows for enhanced cost efficiencies of the new business and a reason to justify the transaction. Synergy takes the form of revenue enhancement and cost savings. So, before accusation UTC should consider the accusation synergies to minimize the cost and getting the best deal.

 Fragmented Market: They can make the market more fragmented by leveraging the technologies and customer base they have, by increasing the demand for elevators and escalators in developing countries.

 New services/Products: They can try to tap into other electronics and technologies market they could not reach before by providing new products/services.

 International Expansions: The company can surge in defense in emerging economies like China, India etc. Direct Investments of facilities in new countries can be done. A growing market for aerospace systems and propulsion in India can be a huge profit area for United Technologies.

 Innovation: Their system can be more innovative. They should upgrade all the backdated systems. They should tackle a strong outlook for the global control system market. New technological innovations such as geared turbofan, which is prospected achieve 10 to 15% boost in fuel efficiency.

 Creating Positive outlook: They can create a positive outlook in the aerospace and the defense sector. That will help then to make their brand image stronger.

Threats  High rate of competition: There is a huge compaction in this technological sector. The main competitors of United Technologies are CFM International, Honeywell International, Cobham plc, Lockheed

Martin Corporation, Rolls Royce. Competitors such as Honeywell and Boing are always on the verge of having the next best innovation.  Defense sector threat: UTC involvement with other countries military creates grey areas and opportunities to have infractions against U.S law, costing millions.

 External changes (government, politics, taxes, etc.): Strict government policies and some environmental regulation affects United Technologies operations.

 Exchange rate Fluctuations: Economic fluctuations and currency devaluations affect the financial performance as it is an international company.

 Importers (Lower Cost Compotator): The importers of these technological products/services are also in a form of competitors. These importers can be a great threat to United Technologies.

 Maturing categories, products, or services: Many United Technologies product is in the maturity stage, so the sales are declining as for profit is decreasing but the operating cost for that product is not. So that’s a threat for United Technologies.

 Price wars: In some sector of technological products United technology are in threat of price wars, because the competitors are giving the product for much less price.

 Product substitution: The threat or substituted product is always there.

 Supplier Dependency:

The heavy dependency on a few amounts of supplier is already causing the United Technology a fortune and it will also do in the future. It’s a huge threat for a large-scale company like United Technologies.

References: 1. Key Facts. (2018). Retrieved from http://www.utc.com/Who-We-Are/Pages/Key-Facts.aspx 2. Products And Brands. (2018). Retrieved from http://www.utc.com/Who-We-Are/Pages/Key-

Facts.aspx 3. How we work. (2018). Retrieved from http://www.utc.com/Who-We-Are/Pages/Key-

Facts.aspx 4. http://fortune.com.

(2018).

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