Saab AB SWOT and PESTLE Analysis

Strength

1. Unique global position for continuous growth and export potential: Saab provides world-leading products to the market and simultaneously strengthens its market position by establishing a broad international base in a number of countries. Its prime focus on continuous growth helps Saab to increase the order backlog and facilitate ongoing development greatly. As a result, Saab undertakes contracts for major systems as well as small and medium-sized orders. Among many examples include the launch of the second Gotland-class submarine, the maiden flight of Brazil's Gripen E and GlobalEye that was supplied to Dubai. Saab is focusing on entering the delivery stage of several effective programs, where the working capital it has built up will be put to use and contribute to cash flows, capital efficiencies, and improved returns. Saab innovative offerings in the last decade include the advanced version of jet platforms in the form of Gripen, highly innovative underwater solutions like the A26 submarine, a wide range of innovative radar communication devices, including the Global Eye. As Saab maintains a large fleet of such scalable systems, thus it has a strong and clear position in the export market.

2. Constant focus on profitable growth markets: The focus of the company is on several established and potential markets and areas where the company already has a strong position to build on for future growth. Sweden, for example, has been the company's home market and hub of its operations. Saab has strengthened its position in a number of strategic markets with the most significant potential. It is increasing local presence as well as partnerships and industrial collaborations. In 2019, Saab planned to enhance its operation in three strategic markets: Australia, the UK, and the US, where its local presence will be further strengthened. Its also started a new production facility in West Lafayette, Indiana which will handle production and assembly of Saab’s parts for the Boeing T-7 advanced trainer for the U.S. Air Force. The company's marketing organization is reorganized to focus and intensify on marketing and sales, more clearly, in key markets and enhance international growth.

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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. Focusing on environmentally sustainable innovations: As an organization that caters to customers from across the globe, Saab engages in a variety of collaborations in research and development to create innovative and sustainable solutions for the future. One recent example of this is, in 2019, Saab has developed a remotely operated underwater vehicle under its unmanned underwater division that takes care of cleaning the structure without damaging their paint. Such innovations decrease the environmental effect of the ship by reducing fuel consumption significantly. Furthermore, Saab has developed a heat-reducing network based on innovative technology that can be used to cover portable offices, container barracks, and field hospitals. Another sustainable approach adopted by Saab is the development of Combitech, Saab's wholly-owned technical consulting firm, to create a new global norm for high-depth sustainable mining. Moreover, to give a boost to advanced research programs aimed at reducing aircraft pollution, like Europe's Clean Sky program, Saab has leveraged the sustainability platform to become one of the major suppliers of the program.

2. Keeping a tab on the environmental impact of operations and products: To stay competitive in the potential markets across the world and contribute to a sustainable society, Saab works actively to reduce its environmental impact, both from its operations and its products. In 2017, Saab set a goal to reduce greenhouse gas emissions by at least 33 percent by 2030. Although climate aspects are an essential consideration in Saab's long-term business strategy, in 2019, there was a temporary increase in emissions, which was due to increased test flight activities. To mitigate the effect, Saab launched an internal analysis of financial risks and opportunities associated with climate change. Saab also focuses on improving energy efficiency in all business units, which involves installing solar panels where possible. In 2019, Saab started a climate fund to contribute to reduced climate impact where the money will be used to develop sustainable innovations, improving an existing product, and to contribute to the development of fossil-free alternatives

3. Continuous resource efficiency and phase out hazardous products: Saab focuses on developing its products for long operating life. Hence, it aims at enhancing the efficiency of resources to create products with less environmental impact and lower lifecycle costs. One such example of sustainable product development is Gripen, which incorporates an optimized design with light materials and low fuel consumption that ultimately enhances its operating life. Also, Saab is one of the leading suppliers to Clean Sky, which is Europe's most extensive research program dedicated to reducing aircraft emissions. Saab implements policies to strategically phase out hazardous substances that affect health and the environment. In 2019, Saab introduced paint systems that do not contain hexavalent chromium for painting commercial aircraft parts and missile applications. As a result, environmental aspects and requirements are reflected in Saab's global management system and are integrated into every level of the product lifecycle beginning from product development to disposal.