SWOT Analysis of Husqvarna Business Environment and Ethical Practices

1. Submitted to Mr. Vivek Verma,
Assistant Professor- Management
and Subject Faculty
Submitted by
Name - Danish Chandra
Section – 3L
Enrollment No. -06117703521

2. Husqvarna Motorcycles
Husqvarna Motorcycles GmbH (marketed as Husqvarna) is a Swedish-origin
Austrian company that designs, engineers, manufactures, and
distributes motocross, enduro, supermoto, and street motorcycles.
The company began producing motorcycles in 1903 at Huskvarna, Sweden, as a
subsidiary of the Husqvarna armament firm. Today, Husqvarna Motorcycles GmbH is
owned by PIERER Mobility Group.

3. Husqvarna Logo
The symbol Husqvarna logo
is referring to our
gunsmithing history.
On this page, you see the
oldest form as the hallmark of
a passed musket, symbolizing
the sight over the barrel. You
see also the modern version
indicating that Husqvarna is
still keeping the future in sight.

4. Fun Fact
•Husqvarna motorcycles, which began
production in 1903, became world titles
in track racing and motocross bikes

5. SWOT ANALYSIS
SWOT matrix is an analysis which is used to evaluate the strengths,
weakness, opportunities, and threats of an organization's strategy. It is
a structured planning method.
Strength and weakness are the internal factors and opportunities and
threats are the external factors. This is a tool for audit and analysis of
the overall strategic position of a business environment

6. SWOT MATRIX
Threats
This is also an external factor that represents the
condition which is hazardous to the organization's
reliability and profitability. These threats are
uncontrollable.
Example for threats are increasing competition,
market, unannounced power cuts, wars, and so forth.
Weaknesses
This internal factor normally represents the
organization's obstacles towards achieving its
objective.
Example for weakness of an organization can be its
quality, huge debts, insufficient man power, location,
and so forth, but weakness of an organization can be
controllable.
Strengths
This internal factor normally represents the
organization's capabilities.
Strengths can be tangible or intangible such as
product, service, man power, and financial power.
Opportunities
This external factor normally represents the planning
and execution of new strategies that can be more
profitable to the organization presented by the
environment.
Opportunities may be from market, competition,
demand, government, and technology.

7. Strengths of Husqvarna
 Wide geographic presence - Husqvarna AB has an extensive dealer network and
associates network that not only helps in delivering efficient services to the customers but
also helps in managing competitive challenges in the industry.
 Brands catering to different customer segments within segments - Husqvarna AB
extensive product offerings have helped the company to penetrate different customer
segments in segments. It has also helped the organization to diversify its revenue streams.
 Track record of innovation - Even though most players strive to innovate, Husqvarna AB
has a successful record at consumer-driven innovation.
 Success of new product mix - Husqvarna AB provides exhaustive product mix options to
its customers. It helps the company in catering to various customer segments in the industry.
 First mover advantage in the increasingly crowded marketplace. The new products are
rapidly increasing Husqvarna AB market share in the industry.
Talent management at Husqvarna AB and skill development of the employees - Human
resources are integral to the success of Husqvarna AB in the industry.

8. Weaknesses of Husqvarna
Business Model of Husqvarna AB can be easily imitated by the competitors in the
industry. To overcome these challenges company name needs to build a platform model
that can integrate suppliers, vendors, and end users.
High cost of replacing existing experts within the Husqvarna AB. Few employees are
responsible for Husqvarna AB's knowledge base and replacing them will be extremely
difficult in the present conditions.
Gross Margins and Operating Margins could be improved by going forward which
may put pressure on the Husqvarna AB financial statement.
Extra cost of building new supply chain and logistics network - Internet and
Artificial Intelligence have significantly altered the business model in the industry and
given the decreasing significance of the dealer network Husqvarna AB has to build a new
robust supply chain network. That can be extremely expensive.
Declining market share of Husqvarna AB with increasing revenues - the industry is
growing faster than the company. In such a scenario Husqvarna AB has to carefully
analyze the various trends within the sector and figure out what it needs to do to drive
future growth.
Loyalty among suppliers is low - Given the history of Husqvarna AB coming up with
new innovations to drive down prices in the supply chain.

9. Opportunities for Husqvarna
Trend of customers migrating to higher-end products - It represents a great
opportunity for Husqvarna AB, as the firm has strong brand recognition in the premium
segment, and customers have experience with excellent customer services provided by
Husqvarna AB brands in the lower segment. It can be a win-win for the company and
provides an opportunity to increase profitability.
Lowering of the cost of new product launches through third-party retail partners and
dedicated social networks. Husqvarna AB can use the emerging trend to start small before
scaling up after the initial success of a new product.
Rapid Expansion of Economy As the US economy is improving faster than any other
developed economy, it will provide Husqvarna AB an opportunity to expand into the US
market. Husqvarna AB already has the know-how to operate in the competitive US market.
Opportunities in Online Space - Increasing adoption of online services by customers will
also enable Husqvarna AB to provide new offerings to customers in the industry.
Increasing government regulations are making it difficult for unorganized players to
operate in the industry. This can provide Husqvarna AB with an opportunity to increase its
customer base.
Local Collaboration - Tie-up with local players can also provide opportunities for growth
for Husqvarna AB in international markets. The local players have local expertise while
Husqvarna AB can bring global processes and execution expertise to the table.

10. Threats for Husqvarna
• Shortage of skilled human resources - Given the high turnover of employees and
increasing dependence on an innovative solution, the company name can face skilled
human resources challenges in the near future.
• Competitors catching up with the product development - Even though at present
Husqvarna AB is still the leader in product innovation in the segment. It is facing stiff
challenges from international and local competitors.
• Commoditization of the product segment - The biggest challenge for Husqvarna AB
and other players in the industry is the increasing commoditization of the products in the
industry.
• Competitive pressures - As the new product launch cycles are reducing in the industry.
It has put additional competitive pressures on players such as Husqvarna AB. Given the
large customer base, Husqvarna AB can't respond quickly to the needs of the niche
markets that disruptors are focusing on.
• Changing demographics - As the baby boomers are retiring and new generations
finding it hard to replace their purchasing power. This can lead to higher profits in the
short run for Husqvarna AB but reduce margins over the long run as young people are
less brand loyal and more open to experimentation.

11. S W
O
T
 Wide geographic presence
 Brands catering to different
customer segments within
segments
 Track record of innovation
 First mover advantage
 Talent management
 High cost of replacing existing
experts
 Declining market share
 Loyalty among suppliers
 The extra cost of building a new
supply chain and logistics
network
 Opportunities in Online Space
 Local Collaboration
 Increasing government
regulations
 Lowering the cost of new product
launches
 Trend of customers migrating to
higher-end products
 Shortage of skilled human
resources
 Changing demographics
 Competitors catching up with the
product development
 Commoditization of the product
segment

12. Competitor Analysis
YAMAHA KTM HONDA
TVS
Motors
BAJAJ
• Marketing
and
Advertising
• Distribution
• Service
• Lack of Work
force diversity
• Implementati
on of
Technology in
Processes
• Lack of
Presence in
the scooter
market
• Labour issues
• Not a Global
brand
• Launch time
• Lack of Scale
Low profitabilit
y
• Branding
Strategy
• Requirement
of Higher
Investment

13. Conclusion
• Husqvarna Motorcycles GmbH is a Swedish-origin Austrian company that
designs, engineers, manufactures, and distributes motorcycles. The company
began producing motorcycles in 1903 at Huskvarna, Sweden, as a subsidiary
of the Husqvarna armament firm. Husqvarna AB has to analyze the various
trends within the sector and figure out what it needs to do to drive future
growth. The company's biggest challenge is the increasing commoditization of
the product segment. It is facing stiff challenges from international and local
competitors.

14. Suggestions
• Advertisement
• Making it affordable