Otis Worldwide SWOT & PESTLE Analysis

Strength

1. Market leader with highest share: With more than 167 years of experience in manufacturing, installing, and maintaining escalators & elevators across 200 countries, Otis is an Industry leader & well known for its innovative solutions in vertical transportations segment. The company provides unparalleled services which leads to recurring sales for the brand. They have their products installed at some of world’s most well-known buildings, including the Eiffel Tower, the Lotte World Tower, Empire State Building, and the Burj Khalifa, the world’s tallest building. The company has put its brand value on 3 factors including quality, safety, and reliability. A strong market position of Otis Worldwide Corp. showcases the company’s outstanding performance as against its peers in specific areas, and helps it gain new businesses easily. It has operations in more than 200 countries with manufacturing facilities in the Americas, Europe and Asia, and engineering facilities in the US, Austria, Brazil, China, Czech Republic, France, Germany, India, Italy, Japan, South Korea and Spain. The company operates two elevator test towers in Japan and one in the US. It maintains over two million elevators and escalators globally.

2. Innovation around new equipment & services: Otis has become a market leader with over two million units operating globally. Major factor behind this is their global investment in R&D sector. The company was able to file more than >2.3x times patents at global level through 2014-19. They have generated huge revenues by performing maintenance and repair services and modernization of elevator and escalator units. Otis has launched some cutting-edge technologies including Gen360, CompassPlus, OtisONE, etc. All these equipments come with intelligent design, reliable operations, faster construction, and personalized experiences. When compared to 2018, company has able to increase their retention rate from 93.8% to 94.2%, service sales/unit from 0.3% y-o-y to 2.1% y-o-y, and reduce average maintenance hours/unit -2.7% (y-o-y) to -4.0% ((y-o-y) for year 2019. This has led to drive productivity along with empowering technicians to create service excellence. Otis also used IOT solutions to enhance its service portfolio through the access of cloud & data analytics, personalized & customized content, and remote intervention monitoring.

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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. Strong focus on energy efficient elevators: With urbanization in full swing across the globe, Elevator industry is being transformed exponentially over the years. There has been a rise in urban housing with smart and efficient technologies to support this growth. The company is promising to deliver escalators & elevators which help in substantial energy savings along with multiple environment friendly features. There is also awareness among developers & building owners towards green certifications like LEED Platinum (Leadership in Energy & Environmental Design) standards. Otis’ Gen2 elevator systems are designed to reduce almost 75% of energy consumption. Their efficient automation lubrication system Regen technology reduces energy consumption by 60%. Otis TEDA manufacturing system in China received Gold level membership in LEED technology. At US Department of Energy’s Save Energy now LEADER program, Otis took a voluntary pledge to reduce their energy intensity by 25% over the next decade.

2. Improving the operating processes, and reducing greenhouse gas emission and water consumption: Otis is applying coated steel belts and machine in their Gen2 systems, which do not require additional lubricants and eliminate the need for storing, cleaning, and disposing hazardous waste. They are using LED illumination which lasts 10 times longer than the conventional material. Otis is also involved proactively in auditing their operations, monitoring vehicle fleets and optimizing their service routes. Otis has been able to reduce its greenhouse gas emissions by nearly 12% by improving and auditing their processes. They are also involved in recycling, safe waste removal and environmentally friendly cleaners in their operations globally. They were able to recycle almost 97% of their industrial waste in financial year 2018-19. Their manufacturing facility in Madrid is using solar panels to generate about 60% of their energy.