Description
SWOT ANALYSIS OF OMRON

OMRON

Parent Company

OMRON Corporation

Category

Electronics

Sector

IT and Technology

Tagline/ Slogan

Sensing tomorrow

USP

Automation solutions for a changing world

STP

Industrial automation, electronic components, automotive sector, social Segment systems, healthcare

Target Group

Industrial sector, electronics makers

Positioning

One that keeps pace with change

SWOT Analysis

1. Strong employee base of about 36,000 people 2. Strong R&D focus – total expenditure on R&D is a substantial amount which helps in innovation 3. Strong and diverse product portfolio with many innovative products such as hand gesture recognition technology 4. Balanced product portfolio and revenues – with markets distributed across product segments; this provides a shock-cushion as negative impacts in one segment will not affect revenues 5. Robust market share – the company is a leading player with a consistent share 6. It has developed medical equipment, ATM machines, oilfield and Strength marine equipment etc

1. Strong dependence on Asian market, especially Japan and China, for revenue 2. Weakening financial position and declining margins is a concern 3. High concentration of production units in Japan and Asia in comparison with elsewhere in the world – means high distribution cost Weakness and risks of being affected by local market trends

1. Strong outlook for global control systems market Opportunity 2. Accelerated growth in global electronic components market 3. Global electronic components market has wide range of products

under it which could be explored 4. Tie-ups and acquisition of smaller enterprises to boost operations

1. The company faces strong competition especially in the pricing and customer service domains 2. The company has many overseas affiliates and currency fluctuations will greatly impact the functioning of the business Threats 3. Need for compliance to various environmental laws and regulations

Competition

1. Rockwell Automation 2. Emerson Electric Co. 3. Mitsubishi Corporation 4. Schneider Electric SA Competitors 5. Siemens Aktiengesellschaft



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