A SWOT analysis of Equinix identified that the company's strengths include having an extensive global footing as well as a strong brand portfolio. A detailed overview of the research findings follows below.
1. WIDE GLOBAL FOOTING AND NETWORK DISTRIBUTION
- Equinix is one of the world's largest data center and co location provider and has a vast distribution network that can reach the majority of its potential market.
- Equinix has a presence in 50+ markets across five continents with a successful track record of developing products that connect the world's leading businesses to their customers.
- Equinix operates data centers in the United States in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, Miami, New York, Philadelphia, Seattle, Silicon Valley, and Washington, D.C.
2. STRONG BRAND PORTFOLIO
- It also has a strong base of reliable suppliers of raw material that enables the company to overcome any potential supply chain bottlenecks.
1. LIMITED SUCCESS OUTSIDE CORE BUSINESS
- Despite Equinix, Inc. being one of the leading organizations in its industry, "it has faced challenges in moving to other product segments with its present culture."
2. LOW PROFITABILITY RATIO
- Observing first quarter "2020 results within the Communications Services industry 28 other companies have achieved higher Gross Profit Margin."
1. NEW TECHNOLOGY
- Development of new technologies can provide Equinix, Inc., with an opportunity to practice differentiated pricing strategies in new markets, enabling the firm to maintain its loyal customers with excellent service and win over new customers through other value-oriented propositions.
2. NEW ENVIRONMENTAL POLICIES
- New environmental policies have helped create a level playing field for all the players in the industry, which represents an excellent opportunity for Equinix Inc. to emphasize its advantage and gain market share in new product categories.
1. LIABILITY LAWS
- Liability laws in different countries are not the same, which can lead to Equinix Inc.'s exposure to various liability claims given the change in policies in those markets.
- The company also runs the risk of facing lawsuits in multiple markets due to the different laws and continuous fluctuations regarding the standards of products in those markets.
2. INTENSE COMPETITION
- Increased profitability has led to a stable rise in the number of industry players resulting in downward pressure on profitability and overall sales.
- Rising pay level especially coming from movements such as $15 an hour and the increase in prices in China, has the potential to bring about severe pressure on profitability for Equinix, Inc.
In conducting a SWOT analysis of Equinix, we searched the company’s website, annual reports, press releases, investor relations’ info, and third-party articles that provide insights into what makes the company strong or unique. We also searched through third-party articles with the rationale being to find out what mistakes the company has made. Additionally, we looked at the identified Strengths to find out if they open up possibilities, as well as the identified weaknesses to see how eliminating them or better addressing them might lead to opportunities. We also looked at review sites to see what makes customers choose the company’s competitors rather than the company itself. Lastly, we looked at the company’s overall market and industry forecasts, as well as studying what their competitors are doing (and doing well) to help us identify the threats the company may be facing. These could come from their competitors, from obstacles they are facing (like new laws or obsolete technologies), cash-flow problems, or sources.