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Automatic Data Processing (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Automatic Data Processing

Automatic Data Processing (ADP) is one of the leading providers of business outsourcing solutions. The company offers human resources (HR), payroll, tax and benefits administration solutions. It also provides integrated computing solutions to automotive, heavy truck, motorcycle, marine, and recreational vehicle dealers. The company primarily operates in the US. It is headquartered in Roseland, New Jersey and employs about 47,000 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Client retention capabilities

Weaknesses

  • Lack of geographic diversification
  • Low margins and returns compared to competitors

External

Opportunities

  • Expanding the international presence
  • Potential demand from small and medium scale businesses

Threats

  • Economic slowdown
  • Declining North American vehicle market share
  • Intense competition
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