Berkshire Hathaway SWOT Analysis
Strengths
Berkshire Hathaway is a large enterprise that provides services to a number of market segments and industries. They possess holdings, investments, shares and assets in some large companies and has some of its own some subsidiaries.
Their main strength is however the shelter and business industries, though they do have large holdings in different industries such as utilities and forcefulness businesses, manufacturing, service and retailing, as substantially as finance and business products businesses.
Their important enterprise in the shelter business is GEICO. The company acquired GEICO in 1996 and today it is the set of the company’s other shelter operations.
The good will and reputation of the company as Top management and leadership is known world over for its excellence.
The company besides a strong position in the market has top business ratings.
It diverse portfolio of products and services is also one of its strengths. The portfolio ranges from property and casualty shelter and reinsurance, utilities, energy, finance, manufacturing, services and retailing services.
The company has large number of investment and stockholdings in different company which adds to its assets.As of September 2008 the company had shares in more than forty major companies with zillions of shares owned in each.
Berkshire Hathaway has investments in the form of many subsidiaries as well.
Weaknesses
One of the weak point of the company is the Over dependence on its leader and owner Warren Buffett. In some companies the monitoring and investments are are slow e.g in clarinetist industries, P&G and Coke.
The major client of the company is McLane. The company generates about one third of its profits and revenues from McLane. Dependence and focusing on one client is highly risky when the switching is also easy for the customers.
The services is the company are not available to everyone and inaccessible to most people.
Opportunities
There are many possible Acquisitions for the company e.g Goldman Sachs which in given current market conditions are great for investment.
Alternative energy investments are also a great way to increase value to the customers and fulfilling the corporate responsibility.
The company strategies and policies are revolutionary. Even during the recession, the Berkshire is expanding and has made many investments recently. In 2008 the company bought about $8 Billion stockholdings at Bank of America Corp.
Threats
The recent Financial and economic markets turmoil does have a negative impact in one way or the other in on the company investments. The consumer environment is getting weaker day by day world over.
There is a serious threat from many insurance companies and investment banks that can reduce the share of the company.
The company had investments in many sectors but due to recession the stock market has been bearish and unable to generate profits for the company. Berkshire Hathaway’s largest investments have taken a beating too. This is effecting the good will and reputation of the company as well.
The insurance businesses of Berkshire are suffering in the present conditions from which the company derived a large share of its revenues and profits.
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