HONEYWELL-FINAL_MKTG304_43626335_ALFRED-HU_-WAYNE-_12_MONDAY

NATURE OF THE MARKETING AND
COMPETITIVE POSITIONING
STRATEGIES
MKTG304 INDIVIDUAL SUBMISSION
ALFRED HU
WAYNE KINGSTON - MODAY 12 PM
Word Count : 2296
OCTOBER 4, 2016

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NATURE OF THE MARKETING AND COMPETITIVE POSITIONING STRATEGIES

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TABLE OF CONTENTS
Exeuctive Summary ........................................................................................................... 6
Industry Strategy Selection................................................................................................ 7
Strategic Overview ........................................................................................................................... 7
Honeywell Automation and Control Solutions ........................................................................... 8
The Competition ............................................................................................................................ 9
Market Positioning............................................................................................................ 10
Market Battlefield Map................................................................................................................... 10
Honeywell Alignment to End Markets........................................................................................... 10
Points of Parity and Difference...................................................................................................... 11
Competitive Landscape Analysis................................................................................... 12
Porters Generic Strategy ................................................................................................................ 12
SWOT Analysis .................................................................................................................................. 13
Honeywell ..................................................................................................................................... 13
Schneider Electric........................................................................................................................ 14
Johnsons Controls ........................................................................................................................ 15
Marketing Mix................................................................................................................... 16
Branding and Packaging Of Honeywell ...................................................................................... 16
Honeywell’s Brand Architeure.................................................................................................... 18
Product............................................................................................................................................. 19
Pricing and Margins ........................................................................................................................ 20
Honeywell Pricing Analyisis ......................................................................................................... 20
Profit Margins................................................................................................................................ 21
Advertising and Promotion ............................................................................................................ 22
Marketing Honeywell .................................................................................................................. 22
Honeywell Distribution ................................................................................................................. 23
Co-operative Strategems .............................................................................................................. 24
Strategic partners and Core Acquistions.................................................................................. 24
Environmental Factors : PESTLE Analysis......................................................................... 25
Industry Analysis Porters Forces ...................................................................................... 26
Blue Ocean Strategy........................................................................................................ 28
Four Actions Framework: ERRC Grid ............................................................................................. 28
The strategy Canvas: As is Model ................................................................................................. 28
Concluding Statements ................................................................................................... 29
Reference List.................................................................................................................... 30
Journals ............................................................................................................................................ 30
Presentations ................................................................................................................................... 30
Databases........................................................................................................................................ 30
Websites ........................................................................................................................................... 30

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Appendix .......................................................................................................................... 34
Appendix 1: Honeywell Snapshop 2015.................................................................................... 34
Appendix 2: Partnerships in Control........................................................................................... 35

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EXEUCTIVE SUMMARY
- Honeywell is a highly diversified technology and manufacturing company serving customers
all around the world. See Appendix 1 for a Snapshot of the Business
- Honeywell is an innovative technologies are making our word cleaner and more sustainable,
more secure, connected, energy efficient and productive ( 2016, Fact Sheet)
- The pillars of business are
o Aerospace: Winning on the platforms while pioneering the connected aircraft
o Automation and Control Solutions (ACS): Connecting home, buildings and workers
o Performance material and technologies: Wining in a new oil and gas environment
(Honeywell Investor, 2016)
- The focus of this assignment is focused towards Automation and Control Solutions – It is the
leading provider of products, software and technology for environmental and energy
solutions. The division is known for areas in
o Sensing and productivity solutions: ASC services include heating and cooling, building
optimisation and control systems (2015, Annual Report)
o Security
o Fire and industrial safety
o Building solutions and services for homes
- Honeywell has a strong presence across the industry Landscape (Honeywell, 2007)
- This report aims to cover:
o An overview of the industry wide and specific company strategies
o Market position of Honeywell and major competitors
o Overview of the Competitive landscape
o Overview of Marketing Stratagems
o Environmental analysis
o Blue Ocean Application
- Although Honeywell faces pressures from fellow competitors namely large conglomerates like
Schneider and Johnson Controls. Overall Honeywell has the capacity to be a true market
leader world wide as its innovative practices, and customer centricity will allow it to gain even
more market share in Australia. As industry indicators of price, durability and service change,
Honeywell must take advantage of this looking to service platforms, and user portability and
control as avenues of growth for the future and market capitalization

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INDUSTRY STRATEGY SELECTION
According to the Honeywell Annual report the main competitors for the Automation and Control
Solutions domain include
- 3M
- Johnsons Control
- Schneider
- Siemens
- Zebra Motorola
STRATEGIC OVERVIEW
Honeywell competes on factors such as price for value, quality, reliability, delivery, customer service,
performance, applied technology, product innovation and product recognition. Indicators of repeat
purchases include after service care, invoicing (O'Donnelly and Durnford, 2016). It also uses its brand
identity, service to customers and quality as important competitive factors for products and services,
there is also a considerable amount of price completion. Other competing factors include size and
range of product line, R&D, technological and managerial capacity.
Our client partner, Honeywell, has tried to take upon a different marketing strategy in order to
reposition itself within the Australian Automation Control Solutions Industry. Using a intense the pre-
existing broad differentiated approach, which is also adopted by competitors, it needs to be adaptive
to suit market conditions and customer needs. A broad differentiated strategy pertains appealing to
a broad range of buyers, with a key focus upon customer service, uniqueness and care (Minser, 2010).
A differentiated marketing strategy is known for:
- Differentiated image or a higher quality
- Product quality has a focus upon factors such as; Performance, durability, reliability and
consistency within specifications
- Superior product quality is equalling to product quality image
- Complete total quality management to reinforce images of Corporate social responsibility.
(Boehe and Barin Cruz, 2010)
Figure 1: Snapshot of Honeywell’s Automation, Control and Solutions Business (Honeywell, 2016)

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HONEYWELL AUTOMATION AND CONTROL
SOLUTIONS
Honeywell is an Industrial Technology Company that offers a wide
range of technology ranging from market leading industrial software, integrative process and control
solutions, security solution, users waste minimisation and optimisation solutions (Honeywell, 2016).
Product offering range from sensors to switches (Roos, 2014). This broad range of products and services
are indicative of a broad differentiation strategy.
Most recently Honeywell has made a decision split its Automation and Control solutions into both
Home and Building solutions (Convienent Home Mobile controls, temperature controls) and then
Safety and productivity solutions. Recent reports show increased profits due to strategic competitive
advantages in product and service offerings due to key software indicators as well as new
acquisitions. It has announced a restructure of internal organisational structures to enhance product
developments, aiding customer support. Its focus will transition towards a nimbler segments that’s
driven by customer service excellence in terms of responsiveness , hence an increase decision making
(Security Electronics and Networks, 2016). Honeywell is strategically positioned, to further pursue
growth in key markets, that deliver clear end value to end customer, penetrating many growth
markets are mentioned in its Annual Investor Reports. They clearly take upon a visionary marketing
strategy, being a market leader of being the first to introduce key product offerings into the market,
they clearly see the end customer and have a keen eye on disrupting existing markets (Reeves,
Haanaes and Sinha, 2015).
Figure 3: Leadership and Growth Position within Business through software and Multisite Management (Honeywell Investor,
2016)
Figure 2: Honeywell ACS Market Position

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THE COMPETITION
Some of Honeywell’s largest competitors include: Schneider Electric, Johnsons control and Siemens.
There is high competition in the vendor landscape, with local markets providing highly customised,
reliable offerings at lower cost compared to international multinationals (Technavio, 2016). Each of
these companies although very similar to Honey, being a Tier 1 or Original manufacturing companies.
Each have a similar drive for market representation in terms of product innovations, product offerings.
As Tier 1 or Original Manufacturing Companies they share similar characteristics being (Linton, 2016):
- Key Components in major supply chains
- Produce the final product for the end users
- Anamorphous for design, product innovation, reputable systems and operations
SCHNEIDER ELECTRIC
Schneider Electric are the global specialist in energy management
and automation. They have a distinctive focus towards making energy
more efficient, safe and reliable (Schneider Electric, 2016). Its key point of
difference is that this research and development is creating innovative solutions that are sustainable.
They are renowned for being an industry leader for sustainability. Its strategic initiatives are aligned
with a Corporate Social Responsibility in solving the worlds energy problems and to kerb climate
change. It continues to follow the same vein as Honeywell being more “Customer focused, aligned,
innovative and faster” it has a view point that customers must see the organisation as seamless and
integrative in delivering solutions (Control Engineer, 2016).
JOHNSONS CONTROLS
With a world renowned brand name its vision is to create a world that
runs more smoothly, smartly, simply and safely. It hopes to deliver more
seamless world, full of intelligent buildings, again with a central focus
towards delivering innovation to enhance the world of others, it also has a
suitability focus which dates back to 1885. It is drive towards creating greater value for customers
(Johnson Controls, 2016).
Figure 3: ACS Industry Report 2007 (Honeywell, 2007)

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MARKET POSITIONING
MARKET BATTLEFIELD MAP
HONEYWELL ALIGNMENT TO END MARKETS
Figure 4: Perceptual Map of Honeywell within the ACS Industry (Honeywell, 2007)
Figure 5: Honeywell’s ACS End Consumer (Honeywell, 2016)

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POINTS OF PARITY AND DIFFERENCE
Honeywell Competitors
Points of Parity All have a desire to create integrative solutions create intelligent
buildings. All companies have a desire to deliver customer
excellence and care as well as share a vision of an ecological
sustainable world. All focus towards designing high quality
products, that are innovative. There is a clear focus on delivering
products that last with distinct features of reliability and durability,
paramount to success and customer retention. All come to see
themselves as market leaders marking it had to distinguish clearly
between the brands
Points of Difference Focus on the customers; once
acquired seeks to remain a
customer for over 20 years
Strong relationships with end
consumers (O'Donnelly and
Durnford, 2016)
A broad and distinctive
Honeywell brand
Constant research and
development of new products
Constant expansion into
existing markets and disrupting
existing ones
Lowest margins across all
business units (Black, 2016)
Key market Acquisitions to
lower prices
More of an environmental
focus although still customer
driven
Varity and complexity of
product offerings

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COMPETITIVE LANDSCAPE ANALYSIS
PORTERS GENERIC STRATEGY
Our client partner Honeywell, is just one of the many competitors across a highly competitive industry
as mentioned before all claim to be market leaders, each following a Broad customer centralised
differentiation strategy with a key impetus place in customer excellence and retention. According
to MarketLines global industry report control systems are important for the efficiency and
competiveness of the buyer, there are a low number of sellers world wide and the number of buyers
is moderate (MarketLine Advantage, 2016). Through conducting of a through SWOT Analysis to
detect subtle difference each organization adapts to gain a competitive advantage.
Figure 6: Honeywell Positioning within Porters Generic Strategies

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SWOT ANALYSIS
HONEYWELL
Strength Weakness
- Massively diversified organizations with a household
name pillars of; Aerospace, Automation and Control,
Performance Material and Technologies
- One of America’s largest conglomerates
- Strong market positioning, brand name, profit margin
- R&D for constant improvement
- Use of Six Stigma to boost performances and lower
costs
- Reputable history leading to International contracts
with World leading brands and Manufactures
- A wide range of product, services and solutions
- Constant Vertical integration through mergers and
Acquisitions to strengthen the company brand
- Leadership in existing markets plus being a market
disruptor in emerging and existing markets
- Strong Leadership team with Visionary outlook
- A continual drive for innovation though over 118
research, design and engineering facilities
- International workforce of over 130,000
- Strong employee culture with drivers including:
Growth and Customer Development, Leadership
Development , attainment of results , Championing
change and six stigma, Fostering team work and
diversity, Global mindset , Intelligent risk taking , Self
Awareness and Learning, Effective Learning,
integrative thinking and technical and functional
excellence
- Lack of product and company
awareness in Australia, despite
burgeoning growth opportunities in
the Asian and Indian Markets
- Production of Government
contracts may be seen as
deterrence for some End Users
- Standardization of Base Products
- Heavy reliance on US Government
contracts
- Low customer awareness
- Security issues and perceived lack of
product compatibility
- Some financial figures are slightly
alarming: high indebtedness
- Low presence in emerging markets
- Ligation cases: Harming image
Opportunity Threats
- Ability to take upon a further environmental impact
analysis with customer’s focus shifting towards less
environmental impact
- Growth opportunities in Asia and further global
expansion such as India
- Recent acquisitions: Through vertical integration
aiding in cost reduction mainly through raw
materials
- Smart home industry is expected to grow to 11.5
billion dollars by 2019
- Strict government policies and
environmental regulations affecting
operations
- Rising commodity prices
- Economic Slowdown
- Foreign Country regulations
- Innovations from Key Competitors
such as Google Nests and new
market entrants
- Heavy dependence on few
suppliers
(MBA Skool, 2016) (Green, 2016) (Netland, 2012) (Virginia's Community College, 2016)
MarketLine Advantage, 2016)

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SCHNEIDER ELECTRIC
Strength Weakness
- Offers a full compliment of products and
services to a wide range of customers
- It has a very strong environmental focus
intertwined within the organisational mission
- Proven leadership and expertise within its
chosen fields
- Global presence with a large diversification
of manifesting plant worldwide
- Pioneer in the green energy segment in
which is recognized and award winning
- Strong brand presence known for high price
and quality interaction
- Continual investment into service and
product improvement
- Recognition and growth through
partnerships and contracts
- Experiencing a High Growth rate
-
- Some weaker acquisitions has increased
cost and reduced value of combined
business
- Heavy dependence on suppliers
- Observed massive fluctuations in share
prices
- Some issues financially has affected
consumer confidence
- Cost structures
- Investments in research and development
Opportunity Threat
- Increasing product range and services
- Expansion to untapped markets overseas
- World and government regulation/ policies
are being tailored towards a more
sustainable world
- Improvements in customer engagement
with more customized products is playing an
increasing significance
- New acquisitions as well a development of
products and services
operations
- Economic Slowdown
- Heavy dependence on few suppliers
(MBA Skool, 2016) (Swotanalysis24,2016)

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JOHNSONS CONTROLS
Strength Weakness
- Strong range of building and automation
solutions especially battery technology
- Strong marketing positioning
- Diversified business portfolios
- Strong financial position
- Strong workforce of over 150,000
- Global presence with strong diversification
- Renowned contracts
- Substantial existing distribution and sales
networks
- Worldly acclaimed brand and business
- Expansive customer networks across the
automotive front
- Balance capital allocation
- Weak turnover ratios and efficiency
- Expansion in new markets slow in gaining
returns and momentum
- Investment in research and development
yet to yield returns
- Issues with employee productivity and
detainment
- Reliance on small number of suppliers
- Lower margins compared to key
competition
- Product recognized to be 5 years less
durable compare to Honeywell
- Large dependence in the automobile
industry
- Weaker cash flow and conversion rates
Opportunity Threat
- Plethora of market opportunities to grow
- A shift towards a seamless and integrated
world with an environmental focus
- Partnerships and government contacts for
growing demand in new markets
- Potential to grow via diversification and
acquisitions
- Manufacturing of new products and services
- Global expansion
operations
- Economic Slowdown
- Heavy dependence on few suppliers
- Increased costing of raw materials
(Swotanalysis24, 2016) (Haseeb, 2015) (Levine, 2016) (Yousigma, 2016) (MarketLine Advantage,
2016) (Chen et al., 2015) (Virginia's Community College, 2016)

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MARKETING MIX
Having a clear, concise and distinctive marketing mix is crucial for for brand and product
positioning, differentiation and most importantly identification, to provide a competitive edge. In a
market that is highly competitive organization’s must seek to proved value to customers, through life
long relationships and practices
BRANDING AND PACKAGING OF HONEYWELL
Company Marketing Mix Practices
Honeywell Branding
Honeywell’s Value proposition: Is that is relatively inexpensive, easy to access
and install, energy efficient, secure, renowned customer service, reduced costs
and integrates well with home and other solutions
Although Honeywell offers a diverse profile of products it evaluates each of
them towards providing value to customers
Honeywell has a consistent and unified brand communications across all media,
to ensure consistent brand theme, style and appearance across the
organization through a strict brand guideline
Honeywell’s brand is one of its most powerful assets, it differentiates between
competitors and shapes the overall experience people have with brands
Its Branding position encapsulates the distinctive features of Honeywell in
bringing technological solutions to the world which is higher in complexity
everyday
The Logo acts as the company’s primary identifier and is used in all its literature
it is a free standing logo
Honeywell currently does not have a slogan. It’s Advertisements aim to be
aligned to its brand promise of being direct, clear, concise and benefit
orientated towards the consumer
Brand Mantra:
We are building a world that’s safer and more secure...
More comfortable and energy efficient…
More innovative and productive.
We are Honeywell

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Products
The Honeywell brand is the Total Honeywell Experience: Its how people
think/feel/ hear and respond to Honeywell
- It acts a foundation for image and reputation
- Talent attraction
- Serves to create company pride
- Investors reward respected brands
Over 37,000 pending and approved patents to differentiate itself within the
marketplace
Promotions
Honeywell does advertisements with internationally recognized firms: ehow, Jet
Blue. It also showcases it products through TV placements on HGTV and ABC
Family
It uses a combination of optimal pricing strategy as well as a combination of
bundles
Uses a range of installations at: Best Buy, Home Depot, Lowes and Ace Hardware
to showcase its product
It also conducts a series virtual tours via its company’s websites
Pricing
With some of its higher priced products it uses an exclusive distribution
stratagem, as it requires a difficult installation and is best done my a in-house
technician
(Chen et al., 2015) (Virginia's Community College, 2016) (Honeywell, 2016) (Honeywell Process, 2014)
(O'Donnelly and Durnford, 2016)

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HONEYWELL’S BRAND ARCHITEURE
Figure 7: Honeywell Brand Architecture (Honeywell, 2016)
STANDALONE BRANDS
Honeywell supports 16 standalone brands, which have excellent recognition, brand equity and value
in there specific markets, with the brands supported by Honeywell’s Brand Management System and
Honeywell’s visual identification systems. (Honeywell, 2016)
ENDORSED BRANDS
Honeywell supports and maintains several endorsed brands, they are co- branded with Honeywell’s
name, being a mitigation of the Master brand of Honeywell. (Honeywell, 2016)

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PRODUCT
The basis premises of Automation and Control is a HVCA which acts the central hub which integrates
all products to form a system. Choosing a Brand must align with the organisational goals, with the
product serving the purpose for the means selected.
Key features of all systems include:
- Lighting and environment sensors
- Temperature control (Heating and Cooling)
- Carbon monoxide detectors
- Security camera
Company Product
Honeywell
(Honeywell,
2016)
Comfort Point CP-IPC serves as central point in Honeywell’s Automation systems.
This allows for increased economic performance and efficiency, as well as lower
building costs. This system is fully integrative with Honeywell Business Integrator
and is flexible and easy to configure
Schneider
Electric
(Schneider
Electric, 2016)
Schneider Electric offers three products for building automation : Andover
continuum (HVAC) , SmartStruxure Lite Solution and SmartStruxure Solution – All
these products are suited towards building management and for the optimization
of building performance. They range from most complex to simple in order
respectively. Schneider Automation systems allows for lower fixed costs, remote
access and wireless capabilities. Automation products allow for greater control,
greater efficiency and values, whilst the smart Strucuxre system is a simple
integrative user friendly approach which delivers real time data and information.
Johnsons
Controls
(Johnson
Control, 2016)
Johnsons controls offer insightful building technologies,designed to provide real
time information on building performance to enhance efficiency and
productivity. Its product the Metasys Building Austomation system is the core of all
there building efficiency linking together the HVAC, lighting and security and
protection systems from one focal point allowing for building optimization and
customization.
Figure 8: Honeywell System Architecture (Honeywell, 2016)

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PRICING AND MARGINS
HONEYWELL PRICING ANALYISIS
Figure 9: Honeywell Competitive Analysis (Honeywell, 2016)
Honeywell incorporates a premium pricing strategy, operating within a B2B and B2C environment
.Pricing for units and automation systems are not usually released as each are unique and individually
quotes and priced. From the competitive analysis above it is apparent the Honeywell produces a
product which is far superior to the overall market in terms of features, warranty and installation. Its
pricing strategy, is competitive and lowered to many cost cutting acquisitions with a vertical
integrated focus. Its products all have a Honeywell guarantee for reliability and efficiency, with
customer/clients choosing the Honeywell product to meet actual organizational needs. Its research
and development and findings are subsequently passed onto its consumer in which are more cost
efficient. Its pricing is also subsequently aligned with the Honeywell brand in providing value to
customers. Pricing is affected dramatically by the cost of raw materials. They follow the philosophy of
win the right customer serve them forever (Honeywell, 2007). Hence pricing is only of secondary nature
to the long term relationship established with customers

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PROFIT MARGINS
Figure 10: Automation and Control Solutions Profit Margins – (Market Realist, 2016)
According to Market Realist Honeywell has a far superior,
profit margin in comparison to its key competitors.
Honeywell value is within its brand, with service value
focused towards delivering higher margins, lower cost of
sales and higher customer before and after care, due to
durability and reliability of products. It can also be
attributed towards higher levels of disposable income,
standards of living and increases in urbanization (Nasdaq,
2014).Higher profit margins can be attributed to
- Integrated business planning
- Order to cash
- New Product introduction
- Total customer experience
As well as a combination of
1. Understanding customer needs, Driving NPI
2. Superior R and D and Product Marketing expertise
3. World class electronics capabilities
4. Great brands, strong reach and excellent customer service
5. Leading Edge Sales and Channel Marketing Deployment
6. Strategic Acquisitions Integrated Seamlessly
(Honeywell, 2007)
16.40%
8.80%
14.50%
9.20%
HONEYWELL ACS JOHNSON
CONTROLS AND
BUILDING
EFFICIENCY
SCHNIDER
ELECTRIC
BUILDINGS AND
POWER
SIEMENS AG
BUILDING
TECNHLOGIES
SegementProfitMargins%
Companies
Automation and Control Solutions
Segement Profit Margins
Figure 11: Honeywell's HOS Gold Strategy (Honeywell,
2016)

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ADVERTISING AND PROMOTION
MARKETING HONEYWELL
PROMOTIONS
As aforementioned Honeywell’s market dominance not due to promotions or advertising its mainly
through the brand and market positioning. With key factors being leading product and marketing
expertise as well as leading edge sales channels and marketing deployment. According to the
Branding Guidelines Honeywell releases, posters, banner, information pamphlets, automobiles to show
case its brand/products as well as through installations in various commercial and home commercial
settings. Its channels are though its House of Brand for example MK Electric is known for functional and
customer expertise with wide distribution selling stylish wiring devices inspired by natural simplistic
finishes. Its focus is geared towards quality, reliability, safety and responsibility that align with the master
brand of Honeywell (MK Electric, 2016).
Being predominately a Business to Business organization relationship marketing plays an integral role.
The creation of didactic relationships enables the larger transaction possible and strong word of
mouth to reinforce the brand name. Its viewpoint "to continuously improve the way we do things so
that we can capture greater value not just for us, but also for our customers. (O'Donnelly and Durnford,
2016)” Is synonymous with the Honeywell Brand. Having an online presence, in terms of a website
allows for sales to be conducted, customers to experience another touch point with the brand. It is
also another way of informing the about the customer about products and services on offer by
Honeywell as well as provide service, and assistance with product troubleshooters and FAQ on display.
Hence a more integrated before and sales approach when customer conduct research, they form
strong first impressions, view alternative, selects a product and then is able to experience the
companies value through constant care and information access thus offering greater flexibility to the
user and the company in general. Also allows for connection to social media platforms: Facebook,
Twitter, LinkedIn to engage with customers
Figure 12: Honeywell Building Automation Website (Honeywell,2016)

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Technology allows for connection with brands however Honeywell’s social media is rather there to
serve the function of informing rather then engaging with customers. Its use of owned media can be
seen through its YouTube pages used for product launches and Websites however earned media is
also highly important through stock analysis, company reports, and competitive analysis. Advertising
is also conducted in the form of contracts of public facilities and historic/iconic buildings. Honeywell
as a heavy reliance toward earned reputation rather the massively marketing itself to the mass market
in which could greatly affect its image. Technology will play an important role in in products with Apps
future in Honeywell aimed towards viewing feedback and system interaction, settings, alarms and
generating reports for quick changes in system functions development of key software is crucial with
use integration and paramount (O'Donnelly and Durnford, 2016).
COMPETITOR ANALYSIS
In contrast market competitors use a very similar marketing mix to Honeywell’s. Although some are
positioned differently in regards to complexity of offering, price and service and installation. Most
brands have a environmental focus, and branded towards being customer driven and oriented.
Some competitors have a distinct environmental focus within there brand mantra. Like Honeywell
Mass media advertising is rarely used, websites, personal sales and social media, mainly earned
media are the main platforms for advertising and promotions.
HONEYWELL DISTRIBUTION
Honeywell as a distinctive and global distribution strategy making endless growth possible its sells
through industry and direct partners. Its channels are direct to distributors to Original Equipment
Manufacturers with its end consumer being: Airports, Schools, Hospitals, Transportation, Government
and Military
Figure 13: Honeywell Distribution (Honeywell,2007)

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CO-OPERATIVE STRATEGEMS
STRATEGIC PARTNERS AND CORE ACQUISTIONS
STRATEGIC PARTNERS
Honeywell market leadership, and commitment to continual innovation, allowing for strong market
acquisitions. Where Honeywell isn’t strong it uses industry partners to deliver products to customers in
which are mutually beneficial leveraging off one another . Key partners and Alliances are: Dell, IBM,
Microsoft and SAP (Honeywell Process, 2016).
CORE ACQUISTIONS
One of the most significant acquisition of Honeywell was Elster a “leading provider of thermal gas
solutions for commercial, industrial, and residential heating systems and gas, water, and electricity
meters and analytical solutions. (Honeywell Newsroom, 2016) ”Key acquisitions allow for further market
and product development and coverage of key market and future competencies thus enhancing
the core
Figure 14: Honeywell Elster Acquisition (Honeywell, 2016)

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ENVIRONMENTAL FACTORS : PESTLE ANALYSIS
Application to Honeywell
Political - Increased government awareness focused towards Green Energy
Management
- Privatization of government assets
- The initiation of the Government
Economic - Currently experiencing an environmental slowdown
- Down turns on level of global residential and commercial construction and
capital spending hence less new buildings and retrofitting
- Uncertain and volatile economic growth
Socio-Cultural - A shift towards green energy management
- Increased energy accountability
- Focused towards a greener world
- Minimizing the effects of climate change
- Increased government initiatives to bolster new standards in building and
construction
Technological - HVAC to lower costs, optimize building efficiency hence lower operation costs
and improve energy usage
- Focus towards smarter and greener buildings
- Cybersecurity treats
Legal - Increasing environmental obligations
- The Green council of Australia Rating for Buildings
- The Australian Government Energy Efficiency in Government Operations
(EEGO) policy requires new buildings, major refurbishments and new leases to
meet a minimum energy performance standard of 4.5 star NABERS energy
rating.
- Expansion to new and emerging markets FDI and Labor force and
internationalization strategy
- Increasing burden of taxes
- Exchange control regulations
- Trade restrictions
Environmental - Reduction of raw material
(Green Building Council Australia, 2016) (Building Management Systems, 2010) (MarketLine
Advantage, 2016) (Woodward and Robertson, 2008)

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INDUSTRY ANALYSIS PORTERS FORCES
Figure 6: Global Control Systems Competing Factors (MarketLine,2016)
Porters Five Forces
of Market
Attractiveness
Honeywell Application
Barriers to Entry-
Moderate
The industry has relatively low barriers although significant materials and
resources are needed to establish themselves within a market dominated by
large conglomerates like Honeywell
Although resources are readily available in terms of raw materials and
distribution it would struggle against the capital attainable by large firms
Trust of a smaller brands and reputation is hard to grow. It can be seen as
risky business hence the importance of brand identity
Research and development, is constantly needed to bring new and
improved offerings to the market and can be expensive
It is easier to disrupt the market from an established company point of view
rather than be a newly formed organization, as you have a customer base
and resources available
Technological and Interoperability also play a significant role
There is a steep learning curve
Attainment of contracts and Economies of scale is hard to achieve making
it hard to compete on pricing alone
0
0.5
1
1.5
2
2.5
3
3.5
4
Buying power
Degree of Rivalry
New EntrantSubsistutes
Suplier power
Forces Driving Competition in Global Control
Systems

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Internal Rivalry-
Moderate
The market place is dominated by a few multinational organizations who
control the majority of the market share
All these companies (Honeywell, Siemens, Emerson) are large and have
massive capital and resources behind them
Often coming up with similar solutions, competing along the same product
line, with control systems playing a massive role
Each company invests massive money in research and development,
customer care and its products to appeal to the end consumer
Price although one factor other include reliability and durability and
aftersales service also play a massive role
Diversification of service networks, distributors and software innovations all
play a significant role
There are a good diversity of companies and product offered
Low exit barriers
Relatively mature industry
Substitute Products-
Weak
)
Few effective substitutes exist in the market, unable to operate at the level
required
Some alternatives include green approaches of; Chilled beam systems,
Geothermal, Night Sky cooling, and Thermal Energy Storage although these
may be costly
Continuous developments of these systems by incumbents has kept them
competitive and meeting buyer demands.
(Buildings.com, 2016) (MarketLine Advantage, 2016) (Lau, 2016)(Woodward and Robertson, 2008)

28
BLUE OCEAN STRATEGY
FOUR ACTIONS FRAMEWORK: ERRC GRID
Blue Ocean Strategy
Reduce • Wait time for installation
• Centralized control
• Onsite monitoring
Create • Seamlessness and portability of controls (Apps)
• Individual power to decision making – Multi Control
• Data Sharing
• Systems integration : One point Control
Raise • Connectivity
• Quality and Advancement of Products
• Product awareness
• Responsiveness of decisions
• Product Features: Reliability and Durability
• Environmental Impact focus
Eliminate • Product confusion
• Price but ensure quality
• Contractual Agreements: Billings/invoicing
THE STRATEGY CANVAS: AS IS MODEL
4
5 5
4.5
4
5
1
2
1
2
1
2
5
4 4 4
3.5
5
3
4 4 4
3.5
4
0
1
2
3
4
5
6
Price Durability and
Reliability
Product Range User Experince Acquistions Research and
Development
RelativeofferingLevels
Competitive Features
As Is Stratgey Canvas
Honeywell Low Cost Vendors Schnider Electric Johnsons Controls

29
CONCLUDING STATEMENTS
Honeywell is well positioned and has the capital, research and development to remain a market
leader, whilst disrupting the commercial space within Australia. Which means competition closely
following its products and strategic initiatives. The value to customer are attributed to the brand and
overall Honeywell Experience encompassing before and after sales experience. It’s core philosophy
of delivering value to the customer, allows it to seek new and interesting avenues. Reinvigorating
and shape the Buildings Control Market place with urban developments and retrofits, playing an
increasing role in efficiency, reducing costs and waste as well as provided. End consumer will look
for products that reliable and meet their end needs the most.

30
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34
APPENDIX
APPENDIX 1: HONEYWELL SNAPSHOP 2015
- In 2015 Honey well made cumulative sales of 38.6 billion dollars, Aerospace ($15.2 bn),
Automation and Control ($14.1bn) , Performance Materials and technologies ($9.2bn). The
14.1 billion dollars and be further divided into energy, safety and security 9.5bn and building
solutions and distribution 4.6bn respectively.
- The US market dominate US sales (47%) with Australia added within the 11% of other. However
the end of sales market was lead by home and buildings with 24% followed by Commercial
Aerospace. Its sales by end markets, being of an interesting focus share almost a quarter each
include both home and buildings and industrial and workers.
(Honeywell, 2016)

35
APPENDIX 2: PARTNERSHIPS IN CONTROL
Company Description of Advantages
ASM Abnormal Situation Management (ASM) is a group of leading companies and
universities involved with process industries that have jointly invested in research
and development to create knowledge, tools and products designed to prevent,
detect and mitigate abnormal situations that affect process safety in the control
operations environment.
DELL Honeywell and Dell work together to ensure that users achieve the cost reduction
benefits of Dell’s state-of-the-art commercial off-the-shelf equipment, while fully
meeting the specialized availability, reliability and lifecycle needs of Honeywell’s
control systems.
(Honeywell Process, 2016)

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