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Delticom SWOT & PESTLE Analysis

ID : 52630653| Feb 2020| 15 pages


Business Sector :E-Commerce

Operating Geography :Germany, Europe, United States

About Delticom :

Delticom AG is an E-Commerce company operating primarily in Europe and the USA. The company headquarters are located in Hannover in Germany. The company was founded in 1999 by Rainer Binder and Andreas Prüfer. It specializes in the design and operation of online shops, internet-based customer acquisition, internet marketing, developing partner networks and complex and highly efficient product picking and distribution logistics. Delticom AG is the leading online distributor of tyres and automotive accessories. It currently has 460 online shops in 70 countries. Tyres constitute the majority of the company’s business with its portfolio having tyres from over a hundred brands suitable over 25,000 models of cars, bikes, trucks, buses and other commercial vehicles. The company product range also includes the online second-hand vehicle trade and efood. Delticom has extensive experience in creating shops for the international market and in transnational E-Commerce. The company is well known today as being Europe’s largest online tyre and complete wheel retailer. It has a vast network of service partners with over 40,000 members. The company had 346 employees as of 2019.

Delticom Revenue :

€ 645.7 million - FY ended Dec 31st 2018 (YoY growth negative 3.3%)
€ 667.7 million - FY ended Dec 31st 2017

Competitive Analysis of Delticom

The SWOT analysis of Delticom is presented below:
1. Leading online distributor of tyres and automotive accessories
2. Broad portfolio with global footprint
3. Extensive know-how in the field of acquisition and turnaround of loss-making start-ups
4. Streamlined value chain created through automated processes
5. Strong competitive positioning with first mover advantage
1. Low Return on Capital Employed compared to peers
1. Increasing internet penetration globally
2. Investing in optimizing logistics processes
3. Strong potential in online automobile replacement parts market
1. Low entry barriers incresing competition in the market
2. Shortage of skilled workers in Europe
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Detailed SWOT Analysis of Delticom



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1. Increasing internet penetration globally: The internet is rapidly growing as a sales channel and this has a major impact upon Delticom’s success. With number of internet users increasing, online shopping is also quickly picking up. The Global Digital Report 2019 has shown that around 4.4 billion people, amounting to almost 60% of the world's population, use the internet regularly, making it a 9.1% increase as compared to 2018. Internet usage is as high as 86% in Europe which is Delticom's core market. These high figures have led the dealer association Ecommerce Europe to forecast turnovers far more than the € 535 billion seen in 2018.

2. Investing in optimizing logistics processes: Products that are not currently present on the online trading platform are also likely to appear in the near future as product categories keep increasing. Efficient delivery systems, innovating in warehouse storage options, combining online and offline systems together, optimizing searches and adapting to changing purchasing patterns are all necessary for running a successful e-commerce business. Delticom has adopted a strategy of cutting costs by streamlining tyre replacement processes. A number of its acquisitions have been targeted towards improving its market leadership in Europe’s online tyre trade, and reclaiming cost leadership. Prices often fluctuate in this industry as transport services fight amongst themselves over pricing. This has made efficient logistics very important. Delticom too has invested significantly in logistic processes by increasing the number of its warehouses and reducing delivery charges. It is also looking into developing shorter delivery times and supply routes.

3. Strong potential in online automobile replacement parts market: The European replacement parts market has a current value of € 100 billion according to experts. The Freier Ersatzteilemarkt e.V. association (VREI) and the market research and consulting company 2HMforum has conducted a study recently which showed internet penetration of 4-5-% in Scandinavian countries and France and 8% in Germany. These figures are however expected to go up by 18% in the near future. Delticom is already distributing selected automotive replacement parts and accessories online. Along with this, it is also fully utilizing its small items warehouse to provide customers with the replacement parts at optimal logistic efficiency. Increasing online trading will thus also benefit the company significantly and help its profits go up.


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Key Business Segments / Diversification :

Automotive Industrial Interface
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Check Out Analysis of Other Relevant Companies

References used in Delticom Analysis Report

1. Delticom Annual Report 2018 -

2. Delticom Annual Report 2017 -

3. Delticom Company Website -

4. Delticom Company Profile -

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Delticom SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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