Page 18 Chapter 6 SWOT analysis

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Chapter 6 SWOT analysis

Strengths

ThyssenKrupp Technologies is a leading player in the powertrain components

and systems business. The Components Technology is among the world's

leading independent manufacturers of gray and ductile castings. Annually over

50 million cars and commercial vehicle are fitted with brake and drum castings.

Furthermore Components Technology develops and manufactures steering

shafts, steering columns and steering gears for leading OEMs worldwide.

ThyssenKrupp Technologies derives synergies from its parent company’s strong

research and development base. By leveraging its parent company’s technical

know-how, ThyssenKrupp Technologies has earned a reputation for developing

innovative products.

Weaknesses

ThyssenKrupp Technologies generates more than 50% of its sales from its

European operations. Its presence in Asia and Latin America is modest and the

market is dominated by local suppliers with strong supply relationships with

OEMs.

Opportunities

The demand in emerging countries continues to grow, especially in China and

India which are expected to grow by 10% and 8.5% respectively in 2010. To tap

the opportunities in these countries, ThyssenKrupp Technologies has expanded

its presence over the past few years through a number of strategic acquisitions.

In China, the company acquired a 51% interest in the crankshaft operations of

China-based Tianrun in 2006. In 2007, the ThyssenKrupp Technologies segment

closed over 15 acquisition deals across all business segments. Some of the

recent acquisitions are, A-C Equipment (2006/07, Polysius), Forteq (2007/08,

Berco) and Shedden (2007/08, Uhde).

The company expects further opportunities for its automotive components. The

growing environmental awareness amongst motorists who attach increasing

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importance to owning vehicles with low CO2 emissions will in future help boost

sales of weight-optimized components.

Threats

Factors such as, increasing competition from other component makers which

may lead to pricing pressure and increase in the prices of raw materials such as

copper and steel may have a negative impact on the company’s profits

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