Swot Analysis : Danaher Corp

993 WordsApr 12, 20174 Pages
Introduction to Danaher Corp Danaher Corp started as Equity Group Holding in 1980 by Steven and Mitchell Rales with an objective to acquire and run businesses that have – a) Understandable operations with a defined niche, b) Stable revenue model with a potential to generate cash profits, and c) Experienced management with an entrepreneurial orientation. In 1983, the brothers started using Danaher as an acquisition vehicle to acquire companies consistent with above three principles. Core Philosophy Behind Danaher Corp As per the case Danaher Corp decided to develop and utilize Toyota Production System‘s Lean Manufacturing principles of Kaizen (Continuous Improvement) into corporate management. Danaher Corp screen industries to acquire…show more content…
It has number one ranked brand in Electronic Test, Environmental segment, Medical Technology. As none of these brands have more than 30% market share it provides scope for gaining further market share. Bargaining power of suppliers – Being a big player in industries that are dominated by smaller players also ensures that suppliers don’t have much bargaining power. Bargaining power of buyers – Almost all the businesses of Danaher Corp operates in Business to Business (B2B) segment. As Danaher Corp avoids industries with outstanding competitors so more often than not it sells better products than competitors’. This limits the bargaining power of buyers. Threat of New Entrants – The threat of new entrant is directly proportional to the profitability of an industry. As Danaher mostly operates in mature industries the threat of new entrants is comparatively low. Threat of Substitutes – It is the biggest threat to Danaher businesses as each new disruption in product category leads new competitive products. This can be easily noticed in diversification of the sales across new segment such as Dental and Life Sciences in 2010 compare to 2001. Problem at Hand Stagnating / Low Growth of Core Businesses – Historically the biggest driver of growth at Danaher is acquisitions. The growth rate of core businesses over the past 20 years is at 5% while that of overall organization is at 18%. This

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