Assa Abloy AB SWOT and PESTLE Analysis

Strength

1. Resilient business due to plump share of sales coming from aftermarket and commercial arena: Assa Abloy shows its resilience through its customer base. Around 75% of the sales in 2019 were generated from commercial customers. This signifies that the products are durable and modern, meeting the requirements of a commercial property. Added to that, 67% of sales were generated from aftermarket and rest through construction of new properties. This signifies that the product has a satisfied customer base. The customers offer repeat business to Assa Abloy for renovation, remodeling, replacements or up gradation of their properties. This is only possible when consumers are highly satisfied with their nascent services which nurtures customer loyalty.

Weakness

Opportunity

1. Innovation of cloud-based security systems also generates income through subscription: The access solution and physical security market is evolving with usage of AI and cloud services. Locks are no more a matter of a mechanical or an electromechanical key but customers are seeking higher level of information such as remote monitoring of properties, tracking of usage and records of users. Such advanced level of requirements could be solved through integration and digitization of locks, which would again add expense of datacenters to consumer or convenient cloud services by the manufacturer. Assa Abloy decreases such expenses through its in house cloud based security solutions. The services are provided through subscription; thus, creating a regular source of recurring income after the product is sold. Such products are developed by integration of product development with IT solutions. The brand has a dedicated digital factory to provide such services to its customers. Assa Abloy brands such as Accentra and Hi-O, etc. are available with such advanced convenience services.

Threats

Political

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Economic

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Social

1. Decrease in property crimes offset by increase in assaults: Demand for material security has always been higher and changing with development in social factors. Studies in the US and Sweden of crime perceptions confirm that the perception of uncertainty remains at unchanged levels. According to research by The Swedish National Council for Crime Prevention, Gallup, Bureau of Justice Statistics, with increasing income, evolving technology and increased surveillance, there has been a decrease in thefts in the past decade in Sweden and the US. However, the security concerns rise with the surge in number of committed assaults. This creates an uncertain condition, as personal damages are far more serious compared to property damages. There has been assault incidents in offices, academic institutions, religious places, residences, etc., which could had been avoided had there been automated security systems in place so that unwarranted entry could be barred or checked. Assa Abloy has unique range of solutions related to entrance and automation. Assa Abloy can step in with innovative solutions to improve guard against this offence.

Technological

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Legal

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Environmental

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