Abb Case
ABB Asea Brown Boveri
Case n. 4 (5-6-7)
1) What is ABB context and environment?
A deep study and understanding of the environmental context where an enterprise operates, is a necessary step that must precede any further analysis.
Before setting a strategy, the management of the firm has to be aware of the internal potentiality of the company as well as of the external uncertainties (both positive and negative) it may encounter.
The case presents a new born company that has just handled a merger: because of the great uncertainty and delicacy that distinguishes the situation, this first step is even more important.
The context is definitely a global one: as a matter of fact ABB counts 850 separate legal entities in 140 countries all over the World. ABB operates in the Electrical Equipment Industry, and it is the result of a merger between two important European enterprises (Asea and BBC).
The merger had a great impact over the whole industry, because the new ABB became the world’s largest competitor in transmission and distribution, and the leading World supplier of process automation systems, robotics, high speed locomotives and environmental and pollution control equipment.
The competitive environment was then deeply influenced by the merger, because ABB competitors by that moment had to face a giant common enemy: furthermore the acquisition strategy, carried out by ABB, radicalizes more and more the situation, generating a response by the competitors. They started to reorganize themselves with new fusions and joint ventures.
To give a more penetrating view of the context we may apply the SWOT analysis theory to the case. SWOT analysis enables to identify Strengths, Weaknesses, Opportunities and Threats that a company should manage during its business activity.
Referring to ABB’s Strengths we have first of all to consider that thanks to the merger the company significantly increased its market’s share, gaining a leading position over the global
Case n. 4 (5-6-7)
1) What is ABB context and environment?
A deep study and understanding of the environmental context where an enterprise operates, is a necessary step that must precede any further analysis.
Before setting a strategy, the management of the firm has to be aware of the internal potentiality of the company as well as of the external uncertainties (both positive and negative) it may encounter.
The case presents a new born company that has just handled a merger: because of the great uncertainty and delicacy that distinguishes the situation, this first step is even more important.
The context is definitely a global one: as a matter of fact ABB counts 850 separate legal entities in 140 countries all over the World. ABB operates in the Electrical Equipment Industry, and it is the result of a merger between two important European enterprises (Asea and BBC).
The merger had a great impact over the whole industry, because the new ABB became the world’s largest competitor in transmission and distribution, and the leading World supplier of process automation systems, robotics, high speed locomotives and environmental and pollution control equipment.
The competitive environment was then deeply influenced by the merger, because ABB competitors by that moment had to face a giant common enemy: furthermore the acquisition strategy, carried out by ABB, radicalizes more and more the situation, generating a response by the competitors. They started to reorganize themselves with new fusions and joint ventures.
To give a more penetrating view of the context we may apply the SWOT analysis theory to the case. SWOT analysis enables to identify Strengths, Weaknesses, Opportunities and Threats that a company should manage during its business activity.
Referring to ABB’s Strengths we have first of all to consider that thanks to the merger the company significantly increased its market’s share, gaining a leading position over the global