WD-40 SWOT Analysis analyzes, In 1953, a fledgling company called Rocket Chemical Company and its staff of three set out to create a line of rust-prevention solvents and degreasers for use in the aerospace industry. Working in a small lab in San Diego, California, it took them 40 attempts to get the water displacing formula worked out. But they must have been really good, because the original secret formula for WD-40® Multi-Use Product -which stands for Water Displacement perfected on the 40th try—is still in use today.
Did you know? The formula for WD-40® Multi-Use Product is a trade secret so protected the company never even filed for a patent. In fact, only a single person knows every exact ingredient that goes into the famous formula.
It is believed that the WD-40 Company is one of the top companies in its field. WD-40 Company maintains its dominant position in the market by carefully studying and evaluating the SWOT analysis. SWOT analysis is a highly complex process that requires coordination among the various departments within the company such as marketing, finance operations, operational systems management information systems, and strategic planning.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by WD-40.
WD-40 At A Glance – WD-40 SWOT Analysis
Founders: Norman Larsen
Year of establishment: 23 September 1953
CEO: Garry O. Ridge
Headquarters: San Diego, California, United States
Employees (Dec 2020): 540
Ticker Symbol: WDFC
Annual Revenue (Dec 2020): US$368.5 million
Profit net income (Dec 2020): US$12.2 million
Products & Services: WD-40® Multi-Use Product | WD-40® Specialist® | WD-40 BIKE® | 3-In-One Oil | Lava | Spot Shot | X-14 | Carpet Fresh | GT85 | 1001 | Solvol | 2000 Flushes
Company Website: www.wd40.com
Competitors: Interyag | NWF Fuels | Lubricantes Crescent | Kluber Lubrication
WD-40 SWOT Analysis – SWOT Analysis Of WD-40
SWOT Analysis Of WD-40 analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With WD-40 SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about WD-40 SWOT Analysis. Below Is The Detailed SWOT Analysis Of WD-40.
WD-40 Strengths – PWD-40 SWOT Analysis
- Experienced track record of successfully merging and integrating companies through mergers and acquisitions. It has successfully merged a variety of technology firms over the past few years in order to reduce its operational costs and create an efficient supply chain.
- A strong distribution network – Through the years, WD-40 Company has built a solid distribution network that is able to be accessed by the majority of its potential market.
- Excellent performance in new Markets Superb Performance in New Markets WD-40 Company has built expertise in establishing new markets and making a success of these markets. The expansion has allowed the company to create a new revenue streams and diversify risks of the economy within the markets that it operates in.
- Reliable suppliers It has a solid foundation of reliable suppliers of raw materials, allowing the company to get around any bottlenecks in the supply chain.
- A track record of success in the development of innovative products and services.
- A Strong Cash Flow WD-40 Company has strong free cash flows, which allow funds to the business to grow into new ventures.
- Customer satisfaction is high The company through its dedicated department of managing customer relationships is able to attain an excellent level of satisfaction with its current customers as well as an excellent brand image among prospective customers.
- A strong dealer community has created a culture of dealers and distributors in which dealers don’t just market the their company’s products, but also train the sales staff to show the client how to get the most value from the product.
WD-40 Weaknesses – WD-40 SWOT Analysis
- More investment is needed in the latest technologies. Due to the size of expansion and the various geographies that the company plans to enter, WD-40 Company needs to invest more in technology that will allow it to integrate processes across all departments. At present, the investment in technology isn’t up to level with the goals of the business.
- The promotion of the product left much to be left to be desired. Although the product may be successful in terms of sales, its positioning and distinctive selling point is not well identified, which could result in attacks on this market by competitors.
- Days inventory is higher compared to competitors, which makes the company need to raise capital to invest on the channels. This may affect the expansion of WD-40 Company
- It is not very successful in the integration of firms that have a different culture. In the past, while WD-40 Company is successful at the integration of small businesses, it does have its fair share of failing to join firms with different working culture.
- The high attrition rate in the workforce – compared with other companies within the field. WD-40 Company has a higher attrition rate, and has to invest more money compared to its competition in developing and training its employees.
- The ratio of profitability and Net Contribution percentage of WD-40 Company are lower than the industry standard.
- It is not very proficient in forecasting demand for products, leading to a more missed opportunities than its competition. One reason for the inventory levels of the days are higher in comparison to its rivals is because WD-40 Company is not very proficient at forecasting demand and they will end up with a higher stock both in-house and through channels.
WD-40 Opportunities – WD-40 SWOT Analysis
- Government green drive also offers the possibility of buying products from WD-40 from the state and Federal government contractors.
- A rise in economic activity and an growth in consumer spending after years of economic recession and slow growth rates in the sector, presents the perfect opportunity for WD-40 Company to capture new customers and grow the market share of its products.
- The development in the market can result in the dilution of competitive advantage, and will allow WD-40 Company to increase its competitiveness in comparison to other competitors.
- The new taxation policies could profoundly alter the ways of conducting business. It could also create new opportunities for established companies like WD-40 Company to increase its profit margins.
- The reduction in transportation costs because of reduced shipping prices could reduce the price of WD-40’s products, offering a chance to the company to increase its profits or to pass the savings to customers in order to increase market share.
- The latest trends in consumer’s behavior could create a an entirely new market for WD-40 Company . It is a wonderful opportunity for the company to create new income streams and broaden its product offerings as well.
- The core competencies of an organization can be an advantage in different product fields. One example is the case of GE research in healthcare has helped in the development of better oil drilling equipment.
- A steady flow of cash provides the opportunity to invest in other product segments. When there’s more cash at the bank the company is able to invest in the latest technologies, as well as new product categories. This will open up a door of potential in the future for WD-40 Company in other product categories.
WD-40 Threats – WD-40 SWOT Analysis
- A shortage of skilled employees in certain global markets is an obstacle to the an increase in profits that is steady to WD-40 Company in those markets.
- The latest technologies developed by the company’s competitor, or disruptor to the market could pose an immediate risk to the industry in the the near-term and long-term.
- The laws governing liability in different countries differ as well. WD-40 Company may be exposed to liability claims based on modifications to policies in these markets.
- Stable profit has added more players in the market over the past two years, which has put pressure not only on profitability but also on sales overall.
- New regulations on the environment under the Paris accord (2016) could pose the threat to some existing product categories .
- The imitation of counterfeit and inferior product could be a risk to the product of WD-40 Company, especially in emerging markets as well as the low income market.
- There is no regular supply of new products. Over time, the company has created a variety of products , but they are usually a in response to developments by other companies. The supply of new products isn’t regularly occurring, which results in large and low fluctuations in numbers of sales throughout the time.
- Because the company is operating across multiple countries, it is subject to fluctuations in the currency market, particularly given the unstable political climate in a various markets around the globe.
WD-40 SWOT Analysis Template
This is the SWOT report that WD-40 has done. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.