Henkel Swot Analysis 2013

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Company Overview- Henkel AG & Co KGaA (Henkel) a German based company with business interest in home care and laundry, adhesives, surface and sealants products, cosmetics, and toiletries. The company operates worldwide. Henkel is headquartered in Dusseldorf - Germany. SWOT Analysis A broad and diversified portfolio adds stability to revenues by reducing business risk and enables Henkel to grow at a consistent rate. However, rising inflation could increase the company's operating expenses, which, in turn, could reduce its profitability. Strengths Broad product portfolio with strong focus on big brands Strong orientation towards R&D Focus on core businesses Weaknesses Overexposure to Europe under unfavourable economic circumstances Opportunities Focusing on emerging & developing countries Growing personal care products market Positive market growth for the laundry & home care division Threats High inflation can lead to substantial rise in the operating cost Increasing competitive pressure Changing global retail scenario Strengths Broad product portfolio with strong focus on big brands Since its inception about 135 years ago, Henkel has developed a strong product portfolio comprised of mutually complementary activities. The company is primarily engaged in the manufacture and supply of laundry and home care, cosmetics, toiletries and adhesive products. The laundry and home care products include a complete range of domestic care and cleaning products such as heavy-duty detergents, softeners, laundry conditioning items, dish washing items, floor and carpet care products, and bath and WC cleaners. Henkel, through its cosmetics and toiletries division, is engaged both in the branded consumer goods segments of hair care, oral... ... middle of paper ... ...ive global marketplace which is experiencing a trade concentration and the emergence of large-format retailers and discounters. With the emerging trend towards retail and trade consolidation, it is increasingly dependent on key retailers. Some of these retailers have a greater bargaining strength than Henkel. They may use this leverage to demand higher trade leverages, discounts, allowances or may be slotting fees, that could lead to sales reduction or decline in margins. Henkel may also be negatively affected by changes in the policies of its retail trade client, such as inventory/ de-stocking, limitations on display/ access to the shelf space, delisting of items and some other possible conditions. Amendments in the procedure and policies of its retail trade clients and increasing dependence on key retailers in developed markets may adversely affect its business.

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