Genuine Parts Company SWOT and PESTLE Analysis

Strength

1. Established and trusted in the markets with diversified business: The company currently operates in multiple business lines and in multiple geographies. The company has business in the distribution of automotive parts, Industrial parts, electrical supplies and office supplies. It has a very strong distribution network. About 66% of its revenues comes from Automotive parts distribution group and about 34% of its revenues come from Industrial parts distribution group. The office supplies and electrical supplies business consists of small part of its business where the company has diversified into and represents future growth prospects for the company. The company operates in multiple geographies. Its automotive parts group operated in the U.S, Canada, France, UK, Germany, Poland, Netherlands, Belgium, Australia and New Zealand in 2020. The Industrial parts group operated in the U.S., Canada, Mexico, Australia, New Zealand, Indonesia and Singapore in 2020. This level of diversification into multiple businesses and geographies helps the company reduce overall risks in case of any adversity.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

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

Opportunity

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

Threat

1. Shift of many industries and manufacturers from North America to Asia over the last decades: Over the last few decades, the world has seen the rise of China as a new industrial power and manufacturing hub of the world. Chinas manufacturing output has gone up from $625 billion in 2004 to $3896 billion in 2019. Apart from China and Japan countries like India, Taiwan, Vietnam, Indonesia, Malaysia have also attracted western countries to set up their manufacturing plants there. Some of the factors that have attracted foreign companies to set up their manufacturing plants in Asia are lower wage rate in the developing Asian countries, comparatively fewer and relaxed labor laws, high government support, lower environments regulations etc. The continuous rise of wage rate in the US and the increasing number and power of labor unions also contributed to many companies shifting their industries away from the US. Distribution of industrial parts in the US being one of the core business of genuine parts company, the shifting of industries away from the US has been a setback for the company and reduces its potential.

The remaining section under "Threat" is available only in the 'Complete Report' on purchase.

Political

1. Companies quit China after US-China relations turn acrid: Donald Trump after getting elected as the US president employed an America first policy, he was waging trade wars with countries that he felt were taking advantage of the US in trade. He had accused China of unfair trade practices, data theft and currency manipulation to increase their exports and gain trade advantages. He had also accused China of intellectual property theft. This all culminated into a trade war between US and China starting January of 2018, the trade war continued till January of 2020 when they reached phase one agreements but tensions continue to simmer. Many companies were also pushed to give away their trade secrets in return for access to lucrative Chinese market. In recent years China’s territorial ambition have also increase and it has become very aggressive even with western countries. Hence China is also now being seen as a potential security threat and not just an economic competitor. These factors have led to predictions about further and continued deterioration of ties between the US and China which in turn is causing many US companies to move out of China. If these companies come back to the US and set up industries it will help the business of Genuine parts company.

The remaining section under "Political" is available only in the 'Complete Report' on purchase.

Economic

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

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

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