Strengths
Kennametal has a wide range of products, ranging from construction and mining equipment to aerospace engineering materials. This variety of products allow for Kennametal to be prominent in various fields of business. Kennametal is also a global company that does business on several continents. Having a global presence allows Kennametal to do business with people in countries like India, where they have a factory to produce equipment. Kennametal's market drastically increased once the company went global and has been very profitable.
Weaknesses
One of Kennametal's flaws is the lack of investment in new technology. The company has not made any significant breakthroughs that separates their products from their competitors. One major improvement in any of their products could make them the main producers of any certain product, whether in mining or aerospace. A breakthrough could be extremely profitable for the company as well. Kennametal also struggles with developing businesses in areas of different work cultures. For instance, business in places like India and China is significantly different than business in America; the varying cultures prove to be a stumbling block for Kennametal. In order to make transitions to other countries more efficient, Kennametal will have to go into more in depth research on the cultures of the countries they expand to and devise a plan on how to organize their business to be as efficient as possible.
Opportunities
Kennametal recently moved headquarters to downtown Pittsburgh, allowing the company to make more connections and build a better reputation. This change will allow for more business opportunities and increase sales of products. The move will hopefully prove profitable for the company. Kennametal's relatively new CEO was brought in to increase productivity of the company. Under his control, the company hopes to increase productivity and increase sales. This move could also increase the stock value and benefit the shareholders.
Threats
Other companies like Flowserve, Lincoln Electric, Holdings, ITT, and Harsco are Kennametal's biggest competitors and biggest threats to the company's profitability. If Kennametal cannot prove to be a better option compared to it's competitors, the company will lose money. In order to stay profitable, Kennametal must win over customers with quality products and unmatched service.
Comments
Post a Comment