------------------------------------------------- SWOT ANALYSIS Strengths Weaknesses Strong financial performance High debt to equity ratio Wide product portfolio Increase in current liabilities Strong market presence Opportunities Threats Global demand for coatings market Consolidation in chemical industry Opening new stores Foreign exchange risks Strategic acquisition Environmental regulations
The Sherwin-Williams Company is viewed as one of the leading paint manufacturing and retailing companies in the US. Some of their key strengths are a strong market presence, wide product portfolio, and strong financial performance. Also, during the FY2001, the company increased its total stores to 3,390 compared to 3,354 in the FY2009. For FY2011, the company is planning to open 50 to 60 new stores. This expansion plan will provide competitive edge over its peers in the industry. Strategic acquisition Their focus on expanding its global presence will provide further growth opportunities. As an example, the company acquired Becker Industrial Products AB in September 2010, one of the largest manufacturers of industrial wood coatings globally. Becker Acroma operates nine manufacturing facilities, 19 mixing sites and 13 technical centers around the world. This acquisition will allow them to expand its quality products and customer service while also strengthening its growing global platform to better serve customers around the world with outstanding technology, assets, and people. Strategic acquisitions such as this will enhance the company’s global expansion, ensuring top-line performance. Threats: Consolidation in chemical industry Merger and acquisition activities in the chemical industry could present a potential threat. The global chemical M&A deals are expected to be more active in 2011. In the first three quarters of 2010, total global chemical M&A transactions amounted to US$32 billion, which was higher than full year 2009 value of US$25.4 billion. Sherwin-Williams may face competition from its peers, which are financially and
