SWOTT Analysis Introduction Westinghouse Air Brake Company (WABCO) is an organization that manufactures and sells railway brake systems. George Westinghouse is responsible for creating the railway air brake which most train systems have installed today. The railway air brake uses compressed air pressure to regulate, release, and apply a trains brakes. As the company grew, WABCO continued providing break systems for railways, as well as freight and transit vehicles. Westinghouse Air Brake Company can use their innovation and experience to start a new division in the United States’ Automobile Electronics Manufacturing industry. This SWOTT analysis will help us understand where WABCO has succeeded, falling short, threats they face, and trends to come in the industry. As well, the SWOTT show us how the new division that is being propose will catapult the organization into more success in the future. There are several external and internal factors that affect overall performance in the company. Some factors are negative and need to be fixed while other are proving to be consistent benefits. The economy and industry is always changing. It is important to initiate a company SWOTT analysis and even more vital that we take the right steps to improve upon it year after year.
External Forces and Trends WABCO faces many external forces in there industry and to remain competitive they must be aware as well as react. the company used to be a machine for innovation with the creation of several vehicle brake systems. These inventions were not only efficient and cost effective but they promoted the safety of thousands of citizens who used any source of transit. Being responsible for such a serious matter as the lives of people and children brought heavy burden and stress on them However, this was back in a different time where railways, freight trucks, and transit vehicles were mostly mechanical objects made up of hardware. Today all types of transit have incorporated technology and software which is essential to manufacturers and consumers. WABCO has vendors who begin picking up new accounts due to the new demand for parts and materials unrelated to their expertise and the focus has fallen away from their brake systens. The company did a very good job of continuing their skills of innovation by creating more impressive brake systems for a wider range of vehicles and they stand firm behind their product. WABCO has developed a customer base that trust them 100% and remain loyal. The main threat is introduced through the competition who entered into automobile electronics much earlier on. These companies have gotten more than just foot in the door to an industry that has no end in site. Technology has been growing at an immense pace and there are always new creations that consumers can’t help but enjoy to be apart of. With the new division this will be the goal; to break into the automobile electronic manufacturing industry with our cast knowledge, expertise, and long earned reputation.
Internal Forces and Trends Westinghouse Air Brake Company’s current business strategy will blend perfectly with the new division’s strategy. Breaking into the electronics industry requires suppliers and customers which WABCO already has been doing business with for years regarding their brakes. We now see sensors and electronic vehicle control systems being used more often to greatly improve safety. One example is the use of front chassis mounted sensors to recognize an oncoming collision and automatically apply the breaks to prevent accidents. This is one way the new division’s technology and WABCO’s current automobile brake expertise can be utilized together effectively. If WABCO creates the breaks and provides them to the automobile manufacturers, how much better for the customer if they are also the company behind the sensors that will trigger them? Westinghouse Air Brake Company has their reputation on the line and the reputation of their customers. WABCO strives to provide for, and insure the safety of, the vehicle manufacturers and the drivers on the road. Currently in some vehicles, it is not the driver who is initiating the brakes system, rather a sensor provided by an unrelated parts manufacturer is responsible for the application of WABCO’s breaks. This can create a number of issues that are directly related to the safety of drivers and passengers. Having these parts manufactured and supplied by the same organization will ensure the most efficiency and attention to detail. Also, one organization working on these parts together will encourage more innovation and the ability to test scenarios and see what can be improved upon on the spot.
Factor | Strength | Weakness | Opportunity | Threat | Trend | Legal and regulatory | Long proven to be very successful | When dealing with pedestrian safety any error can be catastrophic | Gain positive publicity through good works in a tough venture | Competition may work extra hard to prevent breaking through the barrier | There are always new innovations and therefore opportunities for growth and success | Technological | Have had experience and shown to utilize technology well in the past | Training curve to learn different technology may slow progress | Create new strategy and grow staff moral by infiltrating and new market | Current customers of their breaks already have relationships with vendors who supply electronics | The newest innovation is what the consumers demand | Economic | Previous financial success will provide them with good funds to begin the division | Using funds for the new division may hurt the current company objectives | merging the old with the new division could actually increase productivity | Finding qualified and willing staff to adjust to huge changes | automobile electronic manufacturing has grown exponentially over the past decade and continues | Competitive Analysis | WABCO remains a leader in brake systems | The company will have to start at the bottom where others already established themselves | The new division will be mainly aiming for customers that have already dealt with WABCO | Competitors have control of the market and may use shady tactics to hinder WABCO | There has been a consistent split in market share for several years and competition is steady | Leadership | WABCO has been running a successful corporation for decades | A new division may require new leadership that could cause controversy | Having more leadership could relieve stress on others and open opportunity for more creativity | If staff are having issues with job situation it most definitely will spill into customer relationships | Mergers and/or new ventures stir commotion within companies and can cause negative results | Resources | WABCO has all the vendors and customers that the new division would deal with | Any bad experience from new division could hurt WABCO overall | provide customers with even more service and investment in their well being | other companies are specialized in just auto electric and could sway people | company tend to be loyal to who has consistently made them happy | Culture | WABCO is geared toward innovation and the safety of people | Loyalty my fall short if their previous services begin to lack | show that WABCO provides the same service and attention to detail in everything they do | skeptical customers who have no desire to utilize the new division but want to continue with the old | WABCO has built trusting and loyal relationships with customers and should not fear a huge loss in support |
References
Haider, Zeeshan. "Automobile Electronics Manufacturing in the US Industry Report." IBISWorld. N.p., May 2015. Web. Jan. 2016. <http:// clients1.ibisworld.com.contentproxy.phoenix.edu/reports/us/industry/ default.aspx?entid=829>.
Hirsh, Evan, Akshay Singh, Arjun Kakkar, and Reid Wilk. "2015 Auto Industry Trends." Strategy&. PwC Network, July 2015. Web. 18 Jan. 2016. <http:// www.strategyand.pwc.com/perspectives/2015-auto-trends>.
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