2017 SWOT Analysis of Berkshire Hathaway

Berkshire Hathaway’s Strengths

Berkshire Hathaway is a large enterprise that provides services to a number of market sectors and businesses. They own holdings, investments, shares, and assets in some well-known companies and have some of its own firms. Berkshire Hathaway’s strengths include:

  1. The company’s expanded portfolio in diverse fields.
  2. The company’s strong position in the market due to consistent business.
  3. The company’s huge number of stakeholders and its rapidly growing market position.
  4. Having amazing top management and leadership in the company, the company enjoys highest good will and reputation.
  5. The company’s leading brand name and stable financial position.
  6. The company’s wide portfolio ranging from casualty shelter, services, energy, finance, utilities, retailing services and reinsurance.

Berkshire Hathaway’s Weaknesses

Berkshire Hathaway’s biggest weak point is its over-dependence on its leader and owner Warren Buffets. Moreover, the weaknesses include the following:

  1. The decline faced by the company in its cash flow.
  2. The unavailability of the company’s services to everyone.
  3. The company greatly depends on McLane to generate a higher revenue from it, which can be risky, as the client might switch to other company.

SWOT Rose

Berkshire Hathaway’s Opportunities

Berkshire Hathaway has a vast choice of opportunities that allow it to enhance its business to other leading countries of the world. It has the following opportunities:

  1. Berkshire Hathaway owns about $8 billion stocks at Bank of America Corp.
  2. The company desires to look for new emerging economies to grow its business.
  3. The company needs to propose and enhance the diversified portfolios for their clients.
  4. The company does the substitute energy investments to increase its customer base and meet the responsibility of corporate sector.
  5. The company has implemented the revolutionary policies and strategies and expands its market during the recession.

Berkshire Hathaway’s Threats

The greatest threat that Berkshire Hathaway faces is the consistent change in the government policies. Apart from these, the threats are:

  1. The company has to face the financial crisis in some countries in forms of declines.
  2. Due to the change in financial and economic position in the market, the investment of the company has been influenced.
  3. Natural calamities can also create issues for this business.

4. Other insurance companies are also a threat for Berkshire Hathaway, due to which it has minimized the share of the company.

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