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Honeywell Inc.'s strategy in India w.r.t Defence Industry - Ninad Bhangle
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Honeywell Inc: Portfolio Analysis and BCG Matrix: Honeywell’s Portfolio comprises nine businesses which are organized into 4 Strategic Business Units (SBU) - Aerospace, Automation and Control Solutions, Performance Materials and Technologies, Transportation Systems.
SWOT Analysis of Honeywell Inc.
Strengths:
1) Honeywell has a well-diversified portfolio. As shown earlier, it has 9 different businesses which come under 4 SBUs. Having a well-diversified portfolio minimizes risk and at the same time, gives it more capabilities to expand its reach in the Indian defence industry.
2) Honeywell India has strong growth in revenues and profits. It also has strong technological capabilities.
Weaknesses:
1) Honeywell is mainly into high precision automation systems and equipments. For manufacturing these systems and equipments, employee workforce needs to be well trained and efficient in production. Due to Honeywell’s sudden expansion, it was unable to get skilled work force immediately. The quality of the product was maintained but the productivity came down. Honeywell needs to continue training its workforce internally to improve productivity.
2) Honeywell has only a modest presence in these markets. This can be attributed to the strong regulations followed by the Government
Opportunities:
1) Honeywell has expanded its area of products and services through various contracts and agreements in the form of joint ventures and acquisitions. The Indian defence industry is in a growth phase, hence there are ample opportunities for Honeywell to provide products to the industry.
Abstract: Honeywell Inc addresses tough challenges linked through global trends like safety, security and energy through its technology. It has a diversified portfolio in aerospace, automation, performance materials and transportation systems. This article analyzes the company, its strategy thus far in India with respect to the Defence Industry and automation, and also suggests strategies for the future.
We have developed the BCG matrix according to the relative market share and the growth potenti-
al of each business segment. The sales revenue has been considered to be a reasonable estimate of the market share of the companies. The sales values used are that of 2010.
The growth rate in the aerospace segment is 5.1%, automation 10.1%, and transportation is 27.1%. The growth in the transportation segment has been computed from the growth rate of major players in the segment. Performance Material is one of its fastest growing SBU’s, but we would not be focussing much on this SBU.