Detailed SWOT Analysis of Safran – One Of The Largest Aerospace Company

Updated on: Feb 7, 2022
SWOT Analysis of Safran - Featured Image

  Hey there!

My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations from Harvard Business Review helped the students from this course present this analysis.

Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience.

If you find this case study helpful, consider leaving a comment below.

In our previous blog, we talked about the SWOT Analysis of Enel, the 73rd largest revenue-making company in the world. This time let’s dig into the SWOT Analysis of Safran.

Safran develops and manufactures aircraft engines, rocket engines, aerospace-component. It supplies technical knowledge to develop projects and manufacture automotive Aircraft engines, equipment, interiors, defence electronics, avionics, navigation system, communications systems, satellites.

One reason behind the massive success of Safran is its marketing efforts. It is proven time and time again that marketing efforts, especially digital marketing play an important factor in a company’s growth. If you are interested in learning about digital marketing – check out our Free MasterClass on Digital Marketing 101 by IIDE’s CEO and Founder, Karan Shah.

Do you want to learn about the stunning success of Safran? Well, that is exactly what today we are gonna do! In this blog, we are going to dive deep into the SWOT analysis of Safran. But before we start, let us learn a little more about the company, its overview, products, competitors, etc.

Digital Marketing Academic Challenge 2024 - DMAC

About Safran 

SWOT Analysis of Safran - Safran Logo

Safran is a global high-tech company with interests in aviation (propulsion, equipment, and interiors), defence, and space. Its main goal is to make the world a safer, more sustainable place by making air travel more environmentally friendly, comfortable, and accessible. With 76,000 workers and sales of 16.5 billion euros in 2020, Safran has a global footprint and has the world or regional leading positions in its core markets, either alone or in collaboration. To sustain the environmental priorities of its R&T and innovation roadmaps, Safran conducts research and development projects.

Safran is a French corporation that trades on the NYSE Euronext Paris exchange. Its stock is included in the CAC 40 French stock market index as well as the Euro Stoxx 50 European market index. The strategic objectives stated by the Board of Directors are implemented by an Executive Committee representing the Group’s various companies. Safran’s adaptability to address the changing requirements of its economic, financial, and competitive environment is ensured by this governance approach, which assures a balance of power.

Quick Stats on Safran
Founder Merger of Snecma and Sagem
Year Founded 2005
Origin France
No. of Employees 81,000
Company Type Public
Market Cap $ 45.308 Billion (2021)
Annual Revenue € 24.64 Billion (2019)
Net Income/ Profit € 2.44 Billion (2019)


SWOT Analysis of Safran - Safran Technology

Products of Safran

The following products are related to the Safran company:

  • Landing Gear
  • Power Generation Systems
  • Aircraft Information Systems and Data Management
  • Mechanical Power Transmissions
  • Flight Control System

Competitors of Safran

Safran Company’s main competitors are

  • Boeing
  • Thales
  • Leonardo
  • GE Aviation

Now that we are familiar with how the company’s history and it’s working, let’s dive right into the SWOT Analysis of Safran.

SWOT Analysis of Safran

SWOT Analysis of Safran is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.

With the growing neck-and-neck rivalry in membership warehouses, it is critical for organizations like Safran to examine the business environment.

To better understand the SWOT analysis of Safran, refer to the infographic below:

SWOT Analysis of Safran - SWOT Infographics of Safran

Now first let’s begin with the strengths of the company from the SWOT analysis of Safran.

Strengths of Safran

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Safran:

  • Management of talent and employee skill development – Human resources are critical to Safran’s performance in the industry.
  • Broad geographic reach – Safran has a large dealer and associate network that not only assists in providing efficient services to clients but also assists in managing industry competition.
  • Product mix success – Safran offers a wide range of product mix alternatives to its clients. It aids the organization in catering to numerous industry customer segments.
  • Diverse Revenue Models – Safran has dabbled in a variety of industries outside the sector throughout the years. As a result, the company has been able to diversify its revenue streams beyond the sector and segment.
  • Strong Market Leadership Position – In the industry, Safran holds a strong market leadership position. It has aided the corporation in swiftly scaling the success of the latest goods.

Weaknesses of Safran

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Safran are

  • Low investments in customer-oriented services at Safran – This may allow competitors to acquire an advantage soon. Safran needs to enhance its research and development spending, particularly in customer service applications.
  • Expenses – The expense of replacing existing expertise inside Safran is very high. Few individuals are in charge of Safran’s knowledge base, and replacing them will be difficult under the current circumstances.
  • Additional costs and logistics network – The internet and artificial intelligence have significantly altered the business model in the industry, and Safran must establish a new, more robust supply chain network in light of the declining importance of the dealer network. This can be highly costly.
  • Markets and local monopolies –  Companies like Safran may profit from are rapidly dwindling. Safran’s advertised customer network is becoming less and less effective.
  • Profitability – Safran’s per-unit revenue is declining as the name industry becomes more competitive, placing downward pressure on profitability. Objectively examining the current value propositions of the various items is a good place to start in managing this scenario for the company name.

Opportunities for Safran

Opportunities are external variables that, if taken advantage of at the correct time, can help a business expand.

  • Unorganisation – Unorganized players are finding it more difficult to operate in the market as government rules become more stringent. Safran may be able to expand its customer base as a result of this.
  • Competition Rivalry – Economic Expansion at a Breakneck Pace because the US economy is improving quicker than any other industrialized economy, Safran will be able to enter the US market. Safran already has the experience needed to compete in the highly competitive US market.
  • Marketing with Profit – Customers must move from unorganized operators in the market to licensed play increasing the customer base in lower categories. It will allow Safran to break into the entry-level market with a low-cost solution.
  • Modern Technologies – Rapid technical advancements are increasing industry productivity, allowing suppliers to provide a wider range of products and services. This may enable Safran to expand into new product categories.
  • Customer preferences shift frequently – Customers today are more wanting to experiment with and test new products within the market, because of increased disposable incomes, quick access to information, and rapid acceptance of technical products. Safran must keep a close eye on not only industry trends, but also changes in the broader sector.

Threats to Safran

Safran also has some threats on their business from the outside. It is very important to anticipate them before one becomes a victim to them.

  • Environmental Changements – Changes in the political environment, such as the trade war between the United States and China, the impact of Brexit on the European Union, and overall instability in the Middle East, can all have an impact on Safran’s company, both locally and internationally.
  • Skilled human resource shortage – Due to significant staff turnover and a growing reliance on creative solutions, the company may suffer skilled human resource shortages shortly.
  • Rules and Regulations – Distrust of institutions and the increasing threat of legal action against Safran WTO rules and laws are difficult to enforce in different markets. Legal proceedings are a costly and time-consuming process. This could reduce Safran’s investment in emerging markets and slow growth. 
  • Major Companies to Confuse People – Competitive pressure as the launch cycle of new products in the industry gets shorter and shorter. It put more competitive pressure on players like Safran.

This ends our detailed SWOT analysis of Safran. Let us conclude our learning below.

Digital Marketing Academic Challenge 2024 - DMAC

To Conclude

To survive in the practical market, Safran had to pay more attention to all of the key players, because firms from all over the world are playing the best part in the market, and most of the companies are giving goods at the lowest rates and best values to the clients.

As we know, the market condition changes as time passes by, much like a test, a reference, or a trend that shifts regularly. As a result, a company must acquire the greatest technology to gain greater market share in the present and future. With the help of digital platforms and digital marketing, the company would be able to accustom to the changing trends and gain a foothold. Being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, which is vital. If you want to learn more and improve your skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course.

We hope this blog on the SWOT analysis of Safran has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Safran, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Safran in the comments section below.

Share post via

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


Submit a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts