Assa Abloy

    Assa Abloy SWOT & PESTLE

    • Report

    • ID: 529622
    • 21 Pages
    • December 2022
    • Region: Europe
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    About Assa Abloy

    ASSA ABLOY is a publicly traded company headquartered in Stockholm, Sweden. It is a Swedish conglomerate which manufactures locks and security systems. The company supplies products and services ranging from locks, doors, gates and entrance automation. It also offers controlling identities with keys, cards, mobile and biometric identity verification system. The company was formed in 1994 through the partnership of Swedish firm ASSA and Finnish high security lock manufacturer Abloy. Later the same year, the company got listed on the Stockholm Stock Exchange. The company also makes provision of electronic locks which enable students to utilize their smartphones on campus, to open doors in Apple-Wallet, providing a more User-friendly experience. ASSA ABLOY has won numerous awards like Secure Campus in the US for Attack Resistant Opening, Gold Winner in German Brand Award being some of them. From being a regional company with 4700 number of employees in 1994, the company has now become a global group of 50,934 employees in more than 70 countries as of early 2022.

ASSA ABLOY’s unique selling proposition or USP lies in being the largest manufacturer of high-security locks in world. The company is committed to providing services that are environmentally friendly with reduction in usage of gas, electricity, water in production of their products. ASSA ABLOY’s vision statement reads “The Group’s vision is to be the leader in providing innovative access solutions that help people feel safe and secure so that they can experience a more open world.”

    Business Sector

    Security and Access Solutions (Mechanical and Automated Locks and Entrance Solutions)

    Operating Geography

    Sweden, Europe, Global

    Revenue

    SEK 87,649 million – FY ending 31st December 2023
    SEK 95,007 million – FY ending 31st December 2024

    SWOT

    SWOT Matrix for Assa Abloy

    Strength

    Weakness
    1. Global leader of access solutions
    2. Growth driven by effective innovation
    3. Growing as a multi brand conglomerate with mergers and acquisitions
    4. Even contribution of various segments in the growth of the organizations
    5. Resilient business due to plump share of sales coming from aftermarket and commercial arena
    1. Downplayed with vulnerability of electronic locks in hotels
    2. Low presence in emerging markets

    Opportunity

    Threat
    1. Growth of real estate in emerging markets may drive demand for security solutions
    2. Generation of recurring income by renovations
    3. High demand of automation and integration in access solutions
    4. Innovation of cloud-based security systems also generates income through subscription
    5. Growing market of DIY home improvement market
    6. Rise of E-commerce leading to increased traffic
    1. High competition among peers
    2. US antitrust laws hindering the expansion through acquisitions

    Detailed SWOT Analysis of Assa Abloy

    The detailed SWOT analysis for Assa Abloy is presented below:

    Strength

     
    1. Global leader of access solutions: Globally, the ASSA ABLOY Group leads in access solutions. With creative solutions that make it possible for users to access real and digital locations in a safe, secure, and convenient manner, it assists billions of people every day in experiencing a more open world. Its selection of opening-related goods and services includes locks, doors, gates, and entry automation systems. Keys, cards, tags, mobile, and biometric identity verification technologies are all a part of its business, and it is a specialist in trusted identities. Its installed base of locks and access solutions is the greatest in the world, and a sizable portion of its sales are in the stable aftermarket.
    2. Growth driven by effective innovation: The Group's strategic goal is to set the global standard for the most innovative and well-thought-out access solutions. Nearly 4% of Assa Abloy's income is spent on R&D. This offers it a short- and long-term competitive edge given the scale of its business. Its ability to innovate is built on its shared platforms, its innovation organization's worldwide reach but local expertise, its 2,800 R&D personnel, and its more than 9,000 patents. About 27% of its income over the past three years has come from goods that were introduced in the prior three years.

    Weakness

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    Opportunity

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    Threat

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    PESTLE

    PESTLE Matrix for Assa Abloy

    Political

    Economic
    1. Impact on Chinese business due to US China trade war
    1. Impact of Covid-19 on industries

    Social

    Technological
    1. Decrease in property crimes offset by increase in assaults
    2. Urbanization leading to demand of access solutions
    1. Rising demand of electromechanical locks
    2. Role of advanced access solutions in hospitality
    3. E-lockers to offset the requirements of physical documents

    Legal

    ENVIRONMENTAL
    1. Compliance related to usage of hazardous materials in locks
    2. Anti-trust laws in Europe making acquisitions tougher
    1. Role of access solutions in sustainability

    Detailed PESTLE Analysis of Assa Abloy

    The detailed PESTLE analysis for Assa Abloy is presented below:

    POLITICAL

    1. Impact on Chinese business due to US China trade war: Trade tensions with China and other countries have put a burden on European capital goods industries, as tariffs have raised the cost of raw materials and machine components and threaten to create supply shortages. Analysts predict that between 65 and 80 percent of the $34 billion in items affected by the trade that were delivered from the US to China aren't marketed to customers directly but are instead essential components for other products. Due to a deteriorating market, pricey acquisitions, and increased metals costs, Assa Abloy announced a 6 billion crown ($686 million) writedown on its Chinese business. Issues with supply availability brought on by the Covid-19 epidemic in 2021, together with tariffs and growing unpredictability in China, had an influence on Assa Abloy's operations. When it comes to supply, it believes in "best cost" rather than "low cost," and is forming new alliances and shifting some of its focus to, for example, Eastern Europe and Mexico in 2021.

    ECONOMIC

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    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    1. Role of access solutions in sustainability: Building access solutions that are sustainable, resource- and energy-efficient are becoming more and more important. This necessitates increased transparency on the product's environmental effect, sustainable production, and safe working conditions. Additionally, there is a growing degree of regulation of requirements for more energy-efficient buildings and access solutions in a growing number of countries. Products with an environmental product declaration (EPD), based on a life cycle analysis, contribute around one third of Assa Abbloy's sales. When it creates new goods, its goal is to reduce the negative effects on the environment and the embodied carbon footprint while enhancing sustainability features, such energy efficiency, during the in-use phase of the products' lifetime. It has a competitive edge as a result, particularly in bigger projects.

    More Info

    Major Competitors

    • Assa Abloy
    • Abloy
    • HID
    • Yale
    • Tesa
    • Sargent
    • Lookwood
    • Panpan
    • Amarr
    • KAD
    • IdenTrust
    • Cliq
    • SEOS
    • Aperio
    • Accentra
    • Hi-O

    Major Brands

    • Allegion
    • Dormakaba
    • Arrow
    • Milre
    • Dorset
    • Chamberlain
    • Godrej
    • Geze
    • Blum
    • Kwikset

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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