General presentation of Schneider Electric :
The Schneider Electric group is currently one of the world's leading manufacturers of electrical distribution equipment. However, its activity does not only involve electrical distribution equipment, but also industrial automation and control systems, electrical protection equipment and building automation.
Schneider Electric has more than 250 production sites around the world and works mainly with France, but also in Europe, China, Asia-Pacific, the United States and North America.
Know the competition of the Schneider Electric share :
Schneider Electric is the world leader in electrical distribution across its entire range of products and services. A leader in energy management, building distribution, energy optimisation and electrical safety. But it remains in competition with many other companies in this field. It is therefore a good idea to find out about the prospects and results of these competing companies before you start trading Schneider Electric shares. To help you do this, here is a list of companies that represent a potential threat to the group.
- ABB Group
- General Electric
- Fuji Electric
The strategic alliances set up by the Schneider Electric group :
Finally, here are some of the current strategic partnerships of the Schneider Electric Group.
- AREVA: In 2014, AREVA and Schneider Electric signed a strategic partnership agreement to develop energy storage and management solutions based on hydrogen production and fuel cells.
- Alstom: In 2016, Alstom took advantage of the Innotrans show to welcome 10 new members, including Schneider Electric, Nexans, Soreel, Sanmina, Knorr Bremse, Faiveley and Midas, bringing the number to 34. The programme, based on three pillars of business development, industrial excellence and product and innovation, supports Alstom's strategy.
- Microsoft: In 2017, Microsoft and Schneider have joined forces around the various : Cloud, IoT, collaboration and AI.
Introduction and listing of Schneider Electric shares :
Schneider Electric's share price is listed on the Euronext Paris market and includes the calculation of the Euronext 100 stock market index.
Looking at historical charts, there has been a significant rise in the price of this asset, particularly in recent years.
The advantages and strengths of the Schneider share as a stock market asset :
One of the main advantages of the Schneider Group is the success of the international expansion strategy it has been pursuing for many years. Thanks to this strategy, the company has succeeded in establishing a worldwide presence.
Another undeniable asset of the Schneider group this time is its choice positioning in the green energy segment. Indeed, the company has successfully diversified into this sector by anticipating the possible growth of this type of activity and is now reaping the benefits, having been one of the pioneers in this field.
The sheer size of the Schneider company, which is, it should be remembered, very large, is also one of its main assets in terms of growth potential. Indeed, this large size provides the company with greater resources than most of its competitors, enabling it to explore new markets through acquisitions and other such operations.
Still on the subject of the advantages of the Schneider Group, we can also talk here about the brand image and the very strong brand awareness it enjoys. After all, the Schneider brand is known throughout the world and is often synonymous with quality. This strong brand awareness and very positive image enables the company to charge higher prices than some of its competitors and therefore to benefit from higher margins.
Finally, the last advantage that can be mentioned here about Schneider concerns its strong innovative capacities. Indeed, every year Schneider makes significant investments in research and development. In addition, it already benefits from high-quality technology for its production and developments, enabling it to meet its customers' needs efficiently and always stay one step ahead of its main competitors.
Disadvantages and weaknesses of Schneider shares as a stock market asset :
- The first disadvantage that can be highlighted with regard to the Schneider group concerns its past and more specifically the strategic errors it may have made on certain operations. This was particularly the case with bad acquisitions that have largely weighed on its profitability and on the confidence of shareholders and investors on the stock market. These ill-advised acquisitions had the effect of significantly increasing the company's costs and reducing the value of the combined business. However, some of these acquisitions also suffered from a form of cultural incompatibility with the company's culture, which led to a significant drop in productivity and affected the group's core business.
- The Schneider group's financial results are not very favourable either, particularly with regard to the rather disappointing margins, which are struggling to improve over time despite numerous efforts and the implementation of strategic plans by the group. These low margins are the result of several important factors such as the company's lack of liquidity.
- Finally, the last disadvantage that can be mentioned here with regard to the Schneider group concerns another major financial aspect. This is, of course, the company's debt, which still weighs heavily on the level of investor confidence. Indeed, Schneider encounters certain financial difficulties with its clients, which has the effect of significantly increasing the debtor's provisions and affecting the group's profit. These bad debts are therefore a real problem for the company as they severely limit the group's profitability.
As you can see, the disadvantages of the Schneider Group and its share on the stock market are few compared to its strengths. However, you should not neglect them, given the relatively strong weight they can have on traders' decision-making.