Lear Corporation SWOT Analysis

adam June 15, 2012 Manufacturing No Comments

The Lear Corporation was founded during 1980’s which is based and engaged in the production and manufacturing of automotive interiors systems. The company is headquartered in the Southfield, Michigan, United States of America. In various years, the company has done many acquisitions for the purpose of expansions. The company is a complete supplier of the seating, flooring, instruments panel and interior interim etc.

SWOT Analysis of Lear Corporation

Strengths

• The company is very strong and efficient in the use of resources to accomplish the demand of the customers.

• The operating margin of the company is very wide and is expanded and increased with time.

• The company is considered as the experts in the services and productions related to the seating systems.

• The strong position of the company is determined as related to the global presence with the expansions of the brand internationally.

• The strong and leading position of the company is in the market because of the strong financial position.

• The company put more emphasizes and focus on the research and development sector to enhance the production.

• The company is very strong and diversified in the brand portfolio with the innovations in them.

Weaknesses

• The company is increasing in its current liabilities that decline the scope of the company in the market.

• The shares of the Lear Corporation are reduced and declined in various sectors of the market.

• The confidence of the investors towards the company is decreased and limited with time that affects the efficiency in the production.

• The liquidity flow of the money in the company is in very limited form.

• The financial performance of the company is declining because of the inefficiency in generating money.

• The extra dependence of the company on the few customers that affects the growth of the company.

Opportunities

• The high potential of the company in the merger of the markets that expands the growth in various ways.

• The more protective and safety systems should be used by the company to increase the demand for it.

• The involvement of the business in the countries that are considered in the low costs.

• The proper and appropriate planned and strategic acquisitions should be made by the company.

• Efficiency in the fuel and green initiatives should be taken by the company for the huge expansion.

Threats

• Neglecting and emissions of the norms and values that are related to the market concerns.

• The risk of the foreign exchange is the threat for the company in declining of the sales.

• The intense and tough competition is faced by the company in the market scenario.

• The increased cost of the input is the threat for the company because it decreases the rate of the profitability.

• The economical crisis and slowdown as experienced in the market affects the growth of the company.

• The price wars that are occurred in the market are also the threat for the company regarding the profits.

References

• (2011), Lear Corporation: Company Profile and SWOT Analysis.

• www.lear.com, Retrieved on June 10, 2012.

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