Robert Bosch GmbH SWOT Analysis

 

The Robert Bosch GmbH is the biggest automotive supplier in the world.[1] But that’s not all for what this company stands for. Bosch operates also in three other business areas which makes Bosch a multinational engineering and electronics company with nearly 390000 employees. However, Bosch generates 60 percent of its whole revenue through the mobility solutions business field. And this business field will face some serious changes in the next couple of years. Automated Mobility, Drive Systems and Electro Mobility are only three topics that are going to change the whole process of transporting people or things from point A to Point B. Therefore the Robert Bosch GmbH has to transform itself to be prepared for a complete different business market. To show you how well prepared the company for this process of transformation is and to show you how the current situation of this company looks like I made a SWOT Analysis about the biggest automotive supplier there is.

Strengths (internal):

  • Strong focus on development: Bosch spend 2016 nearly 7 Billion Dollars in the development[2]
    the possibility to invest so much money in growing business fields can be an advantage
  • Bosch is known for its high Quality products => customer loyalty and trust
  • International foothold: Bosch has Plants in nearly 60 countries
  • Bosch has competency in automotive core components for utility vehicles and passenger cars
  • Bosch works in many business fields and has a Balanced portfolio (like automotive industry, Industry/Home, appliances, Energy, Healthcare)
  • Bosch has both private end-users (B2C) and companies as customers (B2B)
  • Bosch has connections to the best Universities worldwide… which strengthens their talent pool and future innovation
  • Bosch has a strong corporate culture. For example, it is a very social company, meaning the workers and managers get good loans and a lot of benefits.
    -> Attractive workplace for hard working and intelligent people

 

Weaknesses (internal):

  • Slow respond to dynamic market demand compared to an startup or small companies[4]
  • Employee productivity is lower than in smaller companies because Bosch is a big company with nearly 395000 employees
  • Bosch has high fixed costs through employees and many plants -> only controllable with high effort
  • Bosch has only a small margin with many products compared to OEM’s like Porsche or Daimler
  • A huge part of Bosch produces components for normal diesel-systems and internal combustion engines -> so Bosch has to transform its diesel departments into new technology departments to survive in the future
  • EBIT 2016: 4,3 Billion Euro -> 4,3 Billion Euro is not enough for a company with nearly 400000 employees (for example Daimler generates with 285000 employees 12,9 Billion Euro)

 

Opportunities (outside):

  • Bosch already works on new technologies with high growth potential like Networked mobility, Automated mobility, Drive systems and electrified mobility, smart home, artificial intelligence and internet of things)
  • Increased demand for quality long serving products

 

Threats (outside):

  • New players in the automotive sector – higher competition through for example Tesla
  • Lower sales due to high pricing (this does not include products for b2b relationships)
  • Bosch is involved in the Diesel emissions scandal
  • the whole transportation system is going to change in the next decades, Bosch has to transform itself from an important automotive supplier to a company which plays a key role in the new Mobility Solutions -> therefore Bosch has to transform itself -> this project could fail

 

Conclusion:

The Robert Bosch GmbH is a solid company and especially the fact that this company is able to spend around 7 Billion Dollars into their development every year should prevent the firm from struggling with the changing business field. But the company has to transform itself to a company that produces products or provides services that are still needed when there are no more humans needed to drive a car. Therefore the company has to make sure that the employees understand the current situation and are motivated to reach the future goals of the company. Therefore it should be one of the main goals for the management to develop sophisticated, clear and motivational operative plans (out of the strategic plans from the top management), because it depends on the future success of the company.

[1] https://de.wikipedia.org/wiki/Liste_der_gr%C3%B6%C3%9Ften_Automobilzulieferer

[2] https://de.statista.com/statistik/daten/studie/177373/umfrage/ausgaben-von-bosch-fuer-forschung-und-entwicklung/

[3] https://prezi.com/l0lp2mmrufyt/bosch-swot/

[4] https://prezi.com/l0lp2mmrufyt/bosch-swot/

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