Olympus Corporation SWOT and PESTLE Analysis

Strength

1. Strong presence in multiple business domains: Olympus Corporation started in the year 1919. During the 1920s and early 1930s, the company was focused on the manufacturing and sale of microscopes only. In 1936, Olympus entered into the camera business with the launch of its first camera. R&D continued in these segments but growth was slow due to World War 2. Post the war, Olympus entered the endoscopic market by launching the first practical gastro camera. In the 1960s it diversified in the industrial endoscopic field. Gaining phenomenal success in this segment, Olympus started focusing on advancements in the segment. In the 1990s Olympus launched its first digital camera. Since then, the company has leveraged the use of digital technology to innovate in all the business segments that it operates in. In the recent past, Olympus sold its imaging business and rebranded itself as a holistic med-tech company. Thus, Olympus has been able to enter and retain its position in multiple business segments.

2. Strong Acquisition strategies to consolidate positions: Olympus Corporation has a strong acquisition strategy which helps strengthens its expertise and reputation as well as consolidates positions as a medical technology company in the geographies that it operates in. In August 2020, the company acquired Arc Medical Design Limited, which enabled it expand its product offering in the gastrointestinal therapeutic space. The company has made significant development in the early detection and treatment of colorectal cancer. In November 2020, Olympus acquired FH ORTHO, a French company that has a wide offering of solutions in the minimally invasive surgery (MIS) segment. The acquisition allows Olympus to expand its product offerings for the MIS procedures in trauma, ligament repair, and foot & ankle surgery. In a highly publicized affair, Olympus acquired Veran Medical Technologies in December 2020, which is a leading provider of advanced medical technologies. This will allow Olympus to enter into the Respiratory Solutions segment.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Move towards reduction in environmental impact due to its operations: Olympus Corporation has always been a big supporter of sustainable environment and has always taken conscious steps towards achieving this goal. The “Olympus Group Environment Policy” is a guiding policy on the activities that the company has to carry out in order to tackle environmental issues. The company has adopted a “Green Procurement Standard” which ensures that the suppliers would be selected only when they have put in place environment protection policies. Suppliers need to have a quantitative idea about their CO2 emissions and have action plans to reduce these emissions. Suppliers also need to have a good idea about the environment-related law and checks must be in place to manage the use of chemical substances. This has ensured that the suppliers have become compliant with the sustainable environmental policies of Olympus Corporation. The company also monitors its own CO2 emissions and has taken active steps to create a sustainable environment.

2. Developing products that Contribute to Solving Environmental Issues: Efficient devices can go a long way in creating an environmental impact. These devices can either reduce carbon emission or use renewable energy. The creation of such devices requires significant technological innovation. Olympus Corporation is committed to creating an environmental impact and has a strong Research and Development team which will help them achieve their goal. In 2020, the company started producing X-ray Fluorescence (XRF) Analyzers which is used by quality inspectors at production facilities. This product helps the environment because it is useful in resource recycling and analysis of hazardous substances. It also made several technological upgrades to the industrial video scope which is a very popular product of the company. It is used for the inspection of the internal parts of machines. The latest version of the product has reduced the CO2 emissions significantly. This innovation will allow the company to produce more energy efficient products as well.