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Keyence Corporation SWOT & PESTLE ANALYSIS

ID : 52931153| May 2021| 21 pages

COMPANY PROFILE -Keyence Corporation

Business Sector :Automation, Industrial Automation

Operating Geography :Japan, Asia, Global

About Keyence Corporation :

Keyence Corporation is a Japanese direct sales organization that designs and manufactures automation sensors, vision systems, barcode readers, laser markers, measuring instruments, and digital microscopes. The company is headquartered in Osaka, Japan and it was established by Takemitsu Takizaki in 1974. While Keyence is a manufacturer, it is fabless (fabrication-less) in that it focuses solely on product design and production rather than manufacturing the finished goods. Keyence's products are used in several sectors, including electronics, semiconductors, automobiles, food and packaging, biotechnology, and pharmaceuticals, for manufacturing and testing. The company offers a wide variety of products, including photoelectric sensors and proximity sensors, as well as inspection line measuring instruments and high-precision microscopes for research institutes. More than 200,000 consumers use these items all over the world. Keyence ships from warehouses in Japan, the United States (Chicago), the United Kingdom, Canada, Germany, Italy, France, Thailand, Malaysia, Singapore, and South Korea, as well as 148 agents in 31 countries. In March 2021, the company announced the release of its latest device, the 'Handheld DPM Code Reader SR-G100 Series,' which has remote monitoring capability and improves inspection efficiency and quality.
Keyence Corporation's Unique Selling Proposition or USP lies in being the global leader in the production and manufacture of factory automation equipment, having been placed among the top 100 on Forbes' list of the World's Most Innovative Companies for the past eight years and being named one of Boston Consulting Group's "Top 50 Value Creators" for the past six years. Keyence Corporation's mission statement reads, "We strive to develop innovative and reliable products to meet the needs of our customers in every manufacturing industry. In addition to our world-class products, KEYENCE offers a full range of services to further assist our customers".

Keyence Corporation Revenue :


JPY 551,843 million - FY ending 31st March 2020
JPY 587,095 million - FY ending 31st March 2019

Competitive Analysis of Keyence Corporation

SWOT
PESTLE
The SWOT analysis for Keyence Corp is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. 70% products featuring in world’s first or industry’s first technology.
2. Leading player in factory automation with a global network of 250000+ clients
3. Consistently growing sales of over $5 billion and an annual growth rate of over 20% in the last decade
4. Top 100 most innovative companies in the world as per Forbes 2011-2018 list
1. Key industrial markets like auto and machine tools experiencing weak growth.
2. Harmful chemical substances are released as a part of their manufacturing process.
OpportunitiesThreats
1. Industrial trend towards adoption of Industrial Internet of Things (IIoT), automation
2. Remote operations becoming the new normal
1. Unfavorable change in legal norms and standards in international markets.
2. Natural disasters in their operating markets will negatively impact their supply chain.
3. Implementation of automation has a negative effect on the employment growth in emerging economies
4. Cybersecurity threats in the manufacturing sector
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Keyence Corporation

Strength

1. 70% products featuring in the world’s first or industry’s first technology: Keyence Corporation has been ranked number 49 in Forbes List of world’s most innovative companies and there is good reason behind it. Seventy percent (70%) of Keyence’s products feature on the industry’s first or world’s first technology list which indicates the sheer devotion to innovation that this company exercises. A leader in the automation segment, Keyence has been creating new devices for making industrial processes easier and more cost effective. Some of their innovative products are: Digital Microscopes, Machine Vision Systems, 1D/2D Readers, Handheld Mobile Computers, Laser Markers, Inkjet Printers, Static eliminators, Instant measurement systems, Displacement sensors, Safety curtains and scanners, process and presence sensors. In the contemporary world where automation is the buzzword in manufacturing, these innovative products are indispensable and the robust manufacturing model which is mostly outsourced allows innovation to happen even in low R&D expenditures.

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

1. Industrial trend towards adoption of Industrial Internet of Things (IIoT), automation: Keyence Corporation holds a strategic position in many important technology segments like machine vision, sensors and control system. Even though the business was affected by the pandemic, Keyence is seeing recovery in its top line. Automation sector as a whole saw decline in revenues due to the pandemic but is showing signs of recovery with the trend shifting toward IIOT and Industrial automation. The COVID pandemic has been able to point out the weak links in the global supply chain. With factories being shut down for implementing social distancing measures and complying with government norms, shortage of labor and demand, has all collectively resulted in the declining profits of many companies. Moreover, according to experts, pandemics such as COVID which is delivering fresh punches with mutant strains, are here to stay and pose similar risks for the future. Hence, in this scenario, managers would invest in automation capex to mitigate the risks of lockdown and complete shutdown of facilities. Keyence, being a global player in this segment, is set to gain from this trend and the demand for automation in the upcoming decade.

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

Threat

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

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Check Out Analysis of Other Relevant Companies

References used in Keyence Corporation SWOT & PESTLE Analysis Report

1. Corporate Overview | Keyence America - https://www.keyence.com/about-us/corporate/

2. Annual Report 2020 - https://www.keyence.co.jp/pdf/AnnualReport2020.pdf

3. Robots worldwide: The impact of automation on employment and trade - https://www.ilo.org/wcmsp5/groups/public/---dgreports/---inst/documents/publication/wcms_648063.pdf

4. Robots are going to take a lot of jobs - here's what we could do about it - https://www.businessinsider.in/stock-market/robots-are-going-to-take-a-lot-of-jobs-heres-what-we-could-do-about-it/articleshow/58446131.cms

5. Cybersecurity Vulnerability in Manufacturing: Two Key Areas - https://www.automationworld.com/home/article/21378300/cybersecurity-vulnerabilites-in-manufacturing-two-key-areas

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Keyence Corporation SWOT & PESTLE ANALYSIS - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Keyence Corporation SWOT & PESTLE ANALYSIS - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/keyence/ [Accessed 25 Sep, 2021].

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Keyence Corporation SWOT and PESTLE analysis has been conducted by Aakash Basu and reviewed by senior analysts from Barakaat Consulting.

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