Thomson Reuters SWOT and PESTLE Analysis

Strength

1. Well established brand namewith leading solutions: Thomson Reuters has a well-established brand name which has been recognized by numerous sources. The company was ranked 39th in the Top 100 Global Brands by Interbrand and was Canada’s leading corporate brand. It is recognized by various influential publications and organizations and also has the distinction of being chosen by 49 out of top 50 banks. 94 out of top 100 CPA firms and 95 out of fortune 100 organization use Thomson Reuters Checkpoint. Thomson Reuters Aumentum software is used for parcelling 65 million land parcels around the world.

2. Leader in most of the sectors in which it operates: Thomson Reuters is an industry leader in its operating segments. The company’s leading position in the markets enhances its brand image, attracting more customers, which drives its top line performance. Thomson Reuters holds the first or second position in most of the sectors in which it operates. The company had received two nominations at the News and Documentary Emmy Awards for its special multimedia projects. Such a strong leadership position of the company helps it generate increased demand for its offerings, driving the revenue. Its legal research offerings, including Westlaw Next, an online service for legal professionals is used by more than eighty percent of Fortune 500 companies. Over 400,000 professionals use their financial desktops including their flagship Thomson Reuters Eikon.

3. Diversified global presence: The diversified geographical presence of the company enables it to serve a huge customer base, ensuring strong top line performance. Thomson Reuters has operations in about 100 countries across the world. Geographically, the company operates through three segments, Americas, EMEA (Europe, Middle East and Africa) and Asia. Its team produces 2.5 million articles every year, covering more than 41,000 companies with an average audience reach of over one billion people globally every day.

4. Execution of an attractive business model: Thomson Reuters operates an attractive business model with 86% recurring revenues and more than 93% of revenues from electronically delivered material and insights. This provides the company with Strong and consistent cash generation capabilities.

5. Strategic transformation strengthening the business as an integrated enterprise: Over the last five years, Thomson Reuters has successfully transformed itself from a portfolio of individual operating companies to an integrated enterprise. It has strengthened its core business throughsimplification and productivity initiatives such as replacing legacy applications and operational modernization initiatives. The company has also used its transformation program methodology and resources to improve its go-to-market capabilities, simplifying customer interactionsand increasing e-commerce and digital customer experiences.

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

1. Disruptive technologies to transform news and media industry landscape: Disruptive technologies such as machine automation, artificial intelligence, data synthesis and user-generated capabilities are creating a need to adapt rapidly to the shifting landscape. Thomson Reuters is focused on these changes to the landscape, but if they fail to adapt, their financial condition and results of operations could be adversely impacted. In 2016, the company continued to transform their Technology group to a more unified enterprise, bringing together their development and operations, content platforms, research and applied innovation teams. They have also opened a new Technology Centre in Toronto in the second half of the year and have expanded Thomson Reuters Labs program with the launch of new facilities in Singapore, Cape Town, London and Zurich, enabling them to further collaborate with client businesses.

2. Investments and initiatives in blockchain technology: Thomson Reuters is one of the major player in the financial information world alongside Bloomberg. Over the years the company has gather a great amount of expertise in the financial world with a broad range of offerings. As of 2017 the company stores more than 60,000 terabytes of data backed by a strong infrastructure network. As the blockchain technology moves from pilot projects to real-time applications in the financial world, Thomson Reuters can play a major role with its investments in the technology. As of 2017, the company has invested in three blockchain startups which include Hijro - trade finance space, Funderbeam -a funding platform for pre-IPO companies and Axoni - a blockchain platform vendor in financial markets. The company has also developed products in this space which include BlockOne IQ - an oracle service to deliver data to smart contracts. Further, Thomson Reuters is also part of major blockchain consortiums. It joined Linux Foundation's Hyperledger Project and R3's financial markets consortia in 2016.

Legal

1. Increasing legislations and security regulations: Thomson Reuters is an international company, it has to spend a huge amount of money to keep its data secured and sources protected. In every country where it is working, the organization has to comply with the legal requirements of doing business and register the copyright patents. Further with regulations such as the General Data Protection Regulation (GDPR) which will be in effect from May 2018, Thomson Reuters needs an evaluation of its products and services and data protection practices to ensure compliance. The recently implemented Markets in FinancialInstruments Directive (MiFID II) may also bring in new implications for theFinancial & Risk business.This will also increase the overall operational costs.

Environmental

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