Timken Company is one of the most renowned corporations involved in the production of steel, bearings, and power transmission products. Its products find their application in electronics, industrial equipment, and transport, including aerospace and military. The corporation, which has almost a century of history, is famous for its innovations, which allow it to actively maintain its existing market positions (The Timken Company, 2021). However, despite the achievements, Timken’s future is in question, especially in the face of today’s market challenges. This essay aims to provide a SWOT analysis for the Timken Company and provide strategic advice in both the short and long term.
Among the primary strengths that are internal factors of the company, it is possible to highlight its rich history. Since Timken has been in the bearings and other technical parts market since the 19th century, the corporation has a rich reputation that sets it apart from younger companies. Timken is also renowned for its adherence to technology standards. Consequently, such a foundation allows future growth to be made more reliable and solid.We'll create an entirely exclusive & plagiarism-free paper for $13.00 $11.05/page 569 certified experts on site View More
However, this uniqueness of the product forms one of the company’s weaknesses: the difficulty of marketing and distributing such a product. Despite the existing demand in areas such as aerospace, with even a slight downturn in the industry, the company’s revenues will plummet. Even now, Timken’s profit margins are below the industry average, making the company less attractive to investors (Yahoo Finance, n.d.). Consequently, the company’s uniqueness can be a weakness compared to other, younger and more mobile corporations that can overtake Timken in growth through bold innovations.
Fortunately, Timken is currently actively developing new capabilities, and exploring new areas of activity. A company can afford, for example, a division into two subsidiary corporations for narrower and more efficient market coverage. Besides, Timken can channel existing resources to develop new technologies that will strengthen the company’s position in the market. So, for example, at the moment, part of the corporation is focused on the study and production of magnetic encoders (The Timken Company, 2021). Thus, there are plenty of opportunities and vacancies in the market right now for Timken to come with its resources.
On the other hand, some of the company’s current policies may pose a threat to it, especially in the modern context of developing the coronavirus situation. Although Timken is actively expanding, creating its representative offices in other states, the corporation is thereby dissipating forces instead of concentrating them in one place. Besides, some legislative restrictions in certain regions may create problems for the active development of the industrial activities of the corporation. Finally, the company’s operation will inevitably be influenced by currency fluctuations, which will be the more significant the more countries covered by the company.
From the points described above, some strategic recommendations for further developing the corporation can be singled out. In the short term, the company needs to focus on stabilizing the current market performance, which is not in line with expectations (Yahoo Finance, n.d.). Besides, the coronavirus pandemic situation also affects the market as a whole, so Timken should increase its influence in already established markets rather than expand its reach.Receive an exclusive paper on any topic without plagiarism in only 3 hours View More
However, in the long term, after the end of the current pandemic, the corporation needs to continue the policy of studying new technologies. This recommendation will help Timken stay relevant to the technology market. It is also necessary to slightly expand the list of products, making them more widely available, since the company’s products are extremely specific and highly dependent on the existing demand. For safer development, it is necessary to occupy new markets, providing more potential buyers.
Thus, it can be noted that Timken Company has many prospects for further development, some of which are reflected in the current strategies. However, the company should be more cautious in the short term due to external problems that can disrupt the corporation’s stability. By implementing the above strategic guidelines, Timken Company will be able to consolidate and strengthen its growth while maintaining its status as a high-tech and innovative corporation.
The Timken Company (2021). About Timken encoders. Web.
Yahoo Finance (n.d.). The Timken company. Web.Get your 1st exclusive paper 15% cheaper by using our discount! Use a Discount