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STIHL SWOT and PESTLE Analysis

ID : 521400653| Feb 2023| 20 pages

COMPANY PROFILE -Stihl

Business Sector :Forestry equipment

Operating Geography :Germany, Europe, Global

About Stihl :

Stihl, a German company produces chainsaws and other portable power tools like trimmers and blowers. The company's headquarters are in Waiblingen, Baden-Württemberg, which is close to Stuttgart in Germany. Andreas Stihl, a significant inventor in the early chain saw industry, founded Stihl in 1926. Chain saw manufacturer Stihl, asserts to be the most popular brand in the world and the only one to produce its own guide bars and saw chains. The descendants of Andreas Stihl owns the privately held company Andreas Stihl AG. The International Magnesium Association (IMA) has recognised the STIHL MS 400 C-M as the first chainsaw in the world to use magnesium piston technology and has awarded it with its esteemed Award of Excellence 2020. STIHL was ranked third out of 1,000 companies, to become one of Germany's most popular family-owned businesses in 2022. The company employed over 20,094 people as of early 2022.

The USP of STIHL lies in it being the largest producer of chainsaws in the world. STIHL’s mission is “To be our customers' most valued and trusted business partner by offering exceptional service and support building on the STIHL tradition of excellence.”

Stihl Revenue :


Euro 5,058.3 million – FY ending 31st March 2021 (y-o-y growth of 10.4%)
Euro 4,581.3 million – FY ending 31st March 2020

Competitive Analysis of Stihl

SWOT
PESTLE
The SWOT analysis for STIHL is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. Diversified geographic presence in over 160 countries
2. Caters to the needs of a wide set of customers
3. Wide reach of TIMBERSPORTS – a marketing tool of Stihl
4. Highly innovative and tech-focused products
5. Leading manufacturer of chainsaws and outdoor power equipment
6. Strong presence in e-commerce
1. Keeping pace with the rapidly changing expectations of customers
2. Frequent product recalls damage reputation
OpportunitiesThreats
1. New product launch of the world’s most powerful battery powered chainsaw will open a new chapter in technology
2. Pandemic led to increase in demand for garden equipment
3. Increase in the demand for battery-powered products and gasoline-powered products
4. Investments to expand production facilities
1. Supply chain disruptions hampering production
2. Availability of counterfeit products may damage brand reputation
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Detailed SWOT Analysis of Stihl

Strength

1. Diversified geographic presence in over 160 countries: The STIHL Group designs, manufactures, and sells outdoor power equipment to the forestry, agriculture, landscaping, construction, and discerning consumers. Digital services and solutions are used to supplement the product line. In addition to STIHL's own online stores, which will eventually expand internationally, the products are sold to end users through authorised servicing dealers. The sales network for the STIHL Group consists of 42 sales and marketing firms, roughly 120 importers, and more than 55,000 independent, licenced dealers in over 160 countries. The Group operates manufacturing facilities in seven different countries around the world: Germany, the United States, Brazil, Switzerland, Austria, China, and the Philippines.

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

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

Major Competitors :

  • Schiller Grounds Care
  • MTD Products
  • WOLF-Garten
  • DOLMAR
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References used in Stihl SWOT & PESTLE Analysis Report

1. Annual Report - https://ar.stihl.com/2021/assets/downloads/en/STIHL_AnnualReport_2021_EN_web.pdf
2. STIHL launches new online shop - https://www.stihl.com/stihl-launches-new-online-shop.aspx
3. Recall: Trimmers/Brushcutters Recalled by STIHL Incorporated Due to Injury Hazard - https://recalls.justia.com/household-and-office/brush-cutters/11-711/
4. STIHL RECALLS CHAIN SAWS DUE TO RISK OF INJURY - https://safetymanagementgroup.com/stihl-recalls-chain-saws-due-to-risk-of-injury/
5. STIHL Recalls Chain Saws Due to Fire and Burn Hazards - https://www.cpsc.gov/Recalls/2017/STIHL-Recalls-Chain-Saws
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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STIHL SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). STIHL SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/stihl/ [Accessed 16 Oct, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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