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Johnson Controls (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.”

Johnson Controls 

Johnson Controls is among the largest automotive suppliers in the world. The company provides automotive interior systems to original equipment manufacturers. Johnson Controls is also a globally known automotive battery manufacturer, supplying to both vehicle manufacturers and the aftermarket. The company also operates in the building efficiency segment, wherein its product portfolio includes integrated control systems, mechanical equipment, services and solutions.

Johnson Controls has a strong competitive position in its market segments. The company has a robust market position in the global seating market. Strong market position besides providing economies of scale in procurement and manufacturing, enhances the brand image of the company. However, volatile lead prices and increasing prices of other raw materials could negatively impact the cost structure of the company.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Strong market position
  • Diversified business
  • Strong financial performance


  • Sluggish automotive experience business in North America
  • Weak turnover ratios
  • Relatively low employee productivity



  • Strong order backlog
  • Opportunities in emerging markets
  • Growing usage of electronic content in vehicles
  • Hybrid vehicles technology


  • Declining automotive market in North America
  • Increase in raw materials cost
  • Economic slowdown in the US and EuroZone
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