Autoliv Airbags
Autoliv Airbags
SEATBELT
Reduces fatalities by ca. 45%.
STEERING WHEEL
Crucial for safety and
seamlessly steering the
automobile
AIRBAGS
Reduce life-threatening
injuries by ca. 50%
2023
1956 2012
Autoliv unveils a patented
Lennart Lindblad develops The world’s first outside pedestrian
revolutionary new passenger
first seatbelt. protection airbag is developed
airbag module
S W O T
STRENGTHS OPPORTUNITIES
WEAKNESSES THREATS
● Global presence
● Technological expertise - strong focus on innovation
and constant development
S STRENGTHS
● Strong brand reputation – commitment to safety,
reliability and quality, trust of customers and industry
stakeholders
● Industry leadership – strong market position
● Contracts with big label automobile manufacturers
● Effective sales network and distribution system
● High R&Dcosts
● Dependence on automotive industry – any downturn can
have a significant impact on Autoliv's financfial
W WEAKNESSES ●
performance
Strict regulations and safety standards – increased
production costs
● Customer concentration - reliance on a few major
automotive manufacturers
● Growingdemand for advanced safety technologies-
increasing awareness about road safety
● Technological innovations
O OPPORTUNITIES ● Expansion in emerging markets - exploring
opportunities for expansion in new markets
● Collaborations and partnerships – accelerating product
development
● Regulatorychanges - significant adjustments to Autoliv's
products and operations
● Intense competition - highly competitive industry
T THREATS
● Fluctuations in raw material prices - affect production
costs and profitability
● Economic uncertainty
Threatof new entry: Buyerpower:
THREAT OF NEW ENTRY
The industry requiressignificantcapital Automakersput pressureon Autoliv to
investment in R&D andproduction. There provide competitive pricesand innovative
arestrict regulationsand safety standards. solutions. However, the Autoliv'sreputation
Autoliv'sreputation alsoactsas abarrierto can mitigate some of this bargainingpower.
entry. However, technological
innovationscould lower thesebarriers.
SUPPLIER
THREATSPOWER
OF NEW COMPETITIVE RIVALRY BUYER POWER
ENTRANTS
The industry is highly
competitive. Autoliv
must continually
invest in R&D to
maintain its market
condition.
Discussion question 1
How does Autoliv's dominant market share and global presence influence its
business strategy? What approach would you take as company’s CEO?
17
Discussion question 1
How does Autoliv's dominant market share and global presence influence its
business strategy? What approach would you take as company’s CEO?
Discussion question 2
Examine how Autoliv's strong brand reputation for safety, reliability, and quality
can be leveraged to enter and grow in emerging markets. What marketing
tactics would be most effective?
19
Discussion question 2
Examine how Autoliv's strong brand reputation for safety, reliability, and quality
can be leveraged to enter and grow in emerging markets. What marketing
tactics would be most effective?
Discussion question 3
In light of the high R&D costs, how can Autoliv leverage its technological
expertise and commitment to quality to justify premium pricing when competing
with other cheaper brands?
21
Discussion question 3
In light of the high R&D costs, how can Autoliv leverage its technological
expertise and commitment to quality to justify premium pricing when competing
with other cheaper brands?