This paper reviews and thoroughly analyses the strategy of ThyssenKrupp Elevator as a part of ThyssenKrupp AG group by implementing a variety of tools to analyse the impact of the external and internal environment on the company. It also reviews the current strategy and provides helpful general recommendations on how the company should proceed in order to reach global growth and benefit from the industry growth.
A vision statement describes the company´s directions and future for a life span of 10 to 20 years as well as it defines the long-term goals and represents the company´s philosophy which forms the reference for the company to break down challenges and achieve these goals. A mission statement is the core of a business which articulates the strategy used to achieve the company´s goals and objectives and defines target population and Company´s values as well as it guides the planning process.
Vision of ThyssenKrupp Elevator is defined as "Engineering confidence with everything we do" for the company to build trust among customers in terms of providing reliable and convenient passenger transportation systems for better flow of urban life and to make cities better place to live and to deliver the best people flow experience.
ThyssenKrupp´s mission revolves around engaging customers, employees, investors, and society to reach global markets and to ensure competency and diversity, creating value for employees, customers and shareholders, providing innovative products to create sustainable infrastructure, and as a customer-focused company, keeping employee health and workplace safety as a top priority.
Table of Contents
1. Introduction
1.1. History and Overview of ThyssenKrupp
1.2. Scope of Work
2. Mission and Vision of ThyssenKrupp
3. General Environment Analysis (PESTEL)
3.1. Political and Legal Segment
3.2. Economic Segment
3.3. Socio-cultural Segment
3.4. Technological Segment
3.5. Ecological Segment
4. Industry Environment Analysis (5-Forces) (Elevators and Escalators)
4.1. Intensity of Rivalry among Competitors
4.2. Threat of new Entrants
4.3. Bargaining Power of Suppliers
4.4. Bargaining Power of Buyers
4.5. Threat of Substitute Products
5. Core Competencies Analysis
6. Financial and Operating Performance
7. SWOT Analysis
8. Current Strategy
9. Recommendations
10. Outlook and Conclusion
Objectives and Research Scope
This document aims to provide a comprehensive strategic analysis of ThyssenKrupp Elevator. It examines the company's position within the ThyssenKrupp AG group by evaluating its external environment, internal capabilities, and financial performance to determine its strategic direction and future growth potential.
- Strategic analysis of ThyssenKrupp Elevator within the global market.
- Evaluation of external market influences using PESTEL and Porter's 5-Forces frameworks.
- Internal assessment of core competencies and financial performance.
- Formulation of strategic recommendations to enhance market growth and profitability.
Excerpt from the Book
5. Core Competencies Analysis
Core competencies are a variety of abilities that are combined and harmonized to differentiate a company or organization strategically from others in the marketplace including technological and managerial abilities to make these core competencies difficult to imitate (Schilling, 2013, p. 118). ThyssenKrupp has launched MAX platform which is the world´s first real-time, cloud-based predictive maintenance solutions and boosted it with collaboration with Cyient, a global provider of engineering, manufacturing, data analytics, network and operations solutions, and enabled it by Microsoft Azure IoT technology in order to cut elevator downtime by half and increase availability and efficiency levels by leveraging data from elevators and diagnose potential problems as well as deliver pre-emptive maintenance service (ThyssenKrupp Elevator, 2017, Press releases).
TWIN being the world´s first elevator system with two cabins moving independently in one shaft is one of the innovations that differentiate ThyssenKrupp. It is TÜV-tested, German businesses that certify the safety and rule-compliance of products of all kinds, and has the controller Destination Selection Control (DSC) to coordinate the movement of elevators at the same conveyance capacity so that it saves 25% space (ThyssenKrupp-Elevator, 2017, TWIN). Synergy® blue is a residential silent and energy-efficient elevator system to fulfil the requirements of modern residential buildings with E.COR BLUE control to ensure high level of efficiency and comfort with seven colours by COLOUR-BOX and award-winning Bi-Colour for elevator car design to provide complete sustainable package (ThyssenKrupp-Elevator, 2017, synergy® blue). These core competencies are giving the company high level of differentiation in the marketplace.
Summary of Chapters
1. Introduction: Provides the historical background of ThyssenKrupp and defines the scope and fundamental research questions of the study.
2. Mission and Vision of ThyssenKrupp: Details the company's long-term philosophy, mission objectives, and vision for providing passenger transportation systems.
3. General Environment Analysis (PESTEL): Analyzes the political, economic, socio-cultural, technological, and ecological factors impacting the corporation.
4. Industry Environment Analysis (5-Forces) (Elevators and Escalators): Assesses competitive intensity, supplier and buyer power, and the threat of new entrants and substitutes in the E&E market.
5. Core Competencies Analysis: Highlights the technological innovations like the MAX platform, TWIN system, and Synergy® blue that provide the company with a competitive advantage.
6. Financial and Operating Performance: Examines revenue trends, EBIT margins, and overall financial health compared to major industry competitors.
7. SWOT Analysis: Evaluates internal strengths and weaknesses alongside external opportunities and threats to inform strategic planning.
8. Current Strategy: Discusses the "Strategic Way Forward" program, focusing on culture, HR, performance, and market orientation.
9. Recommendations: Offers strategic advice on service portfolio expansion, acquisitions, and R&D focus to maintain competitive growth.
10. Outlook and Conclusion: Summarizes key findings and provides a forward-looking perspective on industry trends and company success.
Keywords
ThyssenKrupp, Elevator, Escalator, Strategic Analysis, PESTEL, 5-Forces, Core Competencies, Industry 4.0, Financial Performance, SWOT, Sustainability, Urbanization, Market Growth, Innovation, Maintenance.
Frequently Asked Questions
What is the primary purpose of this strategic analysis?
The document provides an in-depth examination of ThyssenKrupp Elevator's business strategy, evaluating how the company maintains its competitive edge and financial health within the global vertical transportation industry.
What methodology is used to evaluate the external environment?
The analysis utilizes the PESTEL framework for macro-environmental factors and Porter’s 5-Forces model to evaluate the specific competitive dynamics of the elevator and escalator industry.
Which key segments are analyzed in the financial performance chapter?
The report focuses on revenue growth, adjusted EBIT margins, earnings per share (EPS), and return on equity (ROE) to compare the performance of the elevator unit against the group and its major competitors.
What are the identified core competencies of ThyssenKrupp Elevator?
Key competencies include digital innovation through the MAX predictive maintenance platform, the space-saving TWIN elevator technology, and energy-efficient product lines like Synergy® blue.
What are the major recommendations provided in the study?
The study recommends expanding the service and modernization segments, pursuing targeted acquisitions of smaller firms, and increasing R&D investment to further differentiate products and manage rising material costs.
How is the "Strategic Way Forward" program described?
It is defined as a group-wide initiative focused on four fields of action: cultural change, HR strategy, performance orientation, and customer/market focus to improve overall financial stability.
What role does urbanization play in the company's future growth?
Urbanization is identified as a critical driver, as increasing global population shifts lead to taller buildings and a higher demand for efficient, safe, and intelligent transportation systems.
What risk factors does the report highlight for ThyssenKrupp?
The report identifies macroeconomic risks like the Brexit crisis and Chinese market fluctuations, as well as financial risks associated with debt levels, currency fluctuations, and interest rate volatility.
- Arbeit zitieren
- Anonym (Autor:in), 2017, Strategic Analysis of ThyssenKrupp Elevator. General Environment Analysis (PESTEL), Industry Environment Analysis (5-Forces), Core Competencies Analysis, and SWOT Analysis, München, GRIN Verlag, https://www.hausarbeiten.de/document/516598
