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Cummins Swot Analysis Essay

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S - Strengths: The strengths of Cummins are many. First, Cummins is much diversified in the engine business and top player market. They are a global company that spans over 7200 dealer locations in 190 territory’s and have more than 600 company and independently owned distributor providers. They produce and provide parts and service on diesel and natural gas powered engines for on highway and off highway use. The company is broke up into four business entities that include Cummins Engine Business, Cummins Power Generation business, Cummins Distribution Business and Cummins Components Business. Cummins employs 55,000 people worldwide and the company was ranked 154 on the fortune 500 in 2015. W- Weaknesses: Cummins has experienced slumping financial performances over the last year, resulting in unfavorable conditions, company reorganizations and uncertainty for the future. The company reported a loss in net revenue for FY2015 was 19.1 million compared to FY2014 which was 19.2 million. Following the decline in revenue net income …show more content…

Increasing competition for market share is the biggest threat Cummins is facing with the slowing global demand the company needs to stay ahead on technological advances and focus reducing cost across the board to stay favorable. Other threats include political, economic and risks that arise from operating an international business. With 44% of gross sales outside the US in 2015 keeping up international relations and forecasting global economic conditions are also at the top of the list for potential threats. Further threats include ever changing strict environmental laws and regulations the company must adhere too. All countries have their own environmental laws and regulations that are changing constantly, keeping up these standards are critical to the operation globally, and could result in stringent consequences if not adhered

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