Description
SWOT ANALYSIS OF HOCHTIEF
Hochtief
Parent Company
Hochtief Group
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
We are building the future
Continuous innovation in the construction sector, helping them stay USP ahead of competition
STP
Based on geography - Europe, the Americas, Australia, Asia, Africa Segment Based on project type - infrastructure projects, real estate and facilities
Targets projects predominantly in Europe, the Americas, Australia and Asia Delivers integrated services covering life cycle of infrastructure Target Group projects, real estate and facilities
As a single point for all solutions – from financing and construction to Positioning operations
SWOT Analysis
1. Leading edge in construction industry through innovations - In total, HOCHTIEF's US subsidiary Turner has constructed 300 buildings using Building Information Modelling. The company’s Australian subsidiary Leighton installed a new warning system developed by its subsidiary Visionstream 2. Single point for all solutions - From design, financing and construction to operation, the company can complete the entire job whether it is infrastructure projects, real estate or facilities 3. Strong order backlog - HOCHTIEF is very strongly placed with many projects under execution and many more in the pipeline providing a Strength continuous source of revenue in the near-to-medium term
1. Leighton’s compliance with code of ethics seems to be a cause for concern – Hochtief is a majority stakeholder in Leighton, which in February 2012 announced that it had voluntarily reported to the Australian Federal Police (AFP) a possible breach of its Code of Ethics Weakness that, if substantiated, may contravene Australian laws 2. Weaknesses in operating expenses and investment management as
its operating profit margin declined
1. Growth in offshore wind farms - HOCHTIEF Offshore Development Solutions acquired the four offshore wind farms, North Sea Windpower 4-7 (NSWP 4-7), from project developer Enova 2. Exposure to high growth markets will boost revenues - India and the Gulf states are among the primary growth markets in which the company aims to develop business. The company was awarded new projects in both regions in 2011 and 2012 3. Contribution to geothermal energy - HOCHTIEF Concessions has two projects underway in this high-growth segment. This creates an Opportunity opportunity for HOCHTIEF to expand the growing geothermal market
1. Intense competition which could affect the company's earnings growth and market share - The competition is becoming increasingly intensive as project opportunities are fewer, while more and more companies are vying for them. Price competition is escalating, especially when it comes to small and medium-sized projects 2. Declining construction sector in the US - With the general economic conditions in the US deteriorating and if it continues to display prolonged economic slowdown in the future, HOCHTIEF's revenue from this segment will be adversely affected 3. Rising input costs - HOCHTIEF will have to deal with an uptrend in Threats raw material costs which will pressurize margins
Competition
1. Bechtel 2. Hornbach Holding Competitors 3. Bilfinger Berger
doc_474213031.docx
SWOT ANALYSIS OF HOCHTIEF
Hochtief
Parent Company
Hochtief Group
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
We are building the future
Continuous innovation in the construction sector, helping them stay USP ahead of competition
STP
Based on geography - Europe, the Americas, Australia, Asia, Africa Segment Based on project type - infrastructure projects, real estate and facilities
Targets projects predominantly in Europe, the Americas, Australia and Asia Delivers integrated services covering life cycle of infrastructure Target Group projects, real estate and facilities
As a single point for all solutions – from financing and construction to Positioning operations
SWOT Analysis
1. Leading edge in construction industry through innovations - In total, HOCHTIEF's US subsidiary Turner has constructed 300 buildings using Building Information Modelling. The company’s Australian subsidiary Leighton installed a new warning system developed by its subsidiary Visionstream 2. Single point for all solutions - From design, financing and construction to operation, the company can complete the entire job whether it is infrastructure projects, real estate or facilities 3. Strong order backlog - HOCHTIEF is very strongly placed with many projects under execution and many more in the pipeline providing a Strength continuous source of revenue in the near-to-medium term
1. Leighton’s compliance with code of ethics seems to be a cause for concern – Hochtief is a majority stakeholder in Leighton, which in February 2012 announced that it had voluntarily reported to the Australian Federal Police (AFP) a possible breach of its Code of Ethics Weakness that, if substantiated, may contravene Australian laws 2. Weaknesses in operating expenses and investment management as
its operating profit margin declined
1. Growth in offshore wind farms - HOCHTIEF Offshore Development Solutions acquired the four offshore wind farms, North Sea Windpower 4-7 (NSWP 4-7), from project developer Enova 2. Exposure to high growth markets will boost revenues - India and the Gulf states are among the primary growth markets in which the company aims to develop business. The company was awarded new projects in both regions in 2011 and 2012 3. Contribution to geothermal energy - HOCHTIEF Concessions has two projects underway in this high-growth segment. This creates an Opportunity opportunity for HOCHTIEF to expand the growing geothermal market
1. Intense competition which could affect the company's earnings growth and market share - The competition is becoming increasingly intensive as project opportunities are fewer, while more and more companies are vying for them. Price competition is escalating, especially when it comes to small and medium-sized projects 2. Declining construction sector in the US - With the general economic conditions in the US deteriorating and if it continues to display prolonged economic slowdown in the future, HOCHTIEF's revenue from this segment will be adversely affected 3. Rising input costs - HOCHTIEF will have to deal with an uptrend in Threats raw material costs which will pressurize margins
Competition
1. Bechtel 2. Hornbach Holding Competitors 3. Bilfinger Berger
doc_474213031.docx