Strategy for honeywell in the automation solutions industry for pulp and paper

Honeywell is a global supplier of automation solutions for the paper industry. Honeywell has a large installed base but in recent years has lost market share to its competitors. Despite industry maturity and product commoditization, the automation solutions industry is attractive for Honeywell as systems are critical for papermaking. Honeywell is well positioned to compete in this challenging industry given strengths in industry key success factors such as customer relationships, technology leadership, and global reach but must address weaknesses in cost leadership, service capability, and industry investment to be successful. For Honeywell to become service-led and to increase market share, a combined strategy of operations consolidation, service differentiation, new technology differentiation, and focus on Honeywell’s process knowledge system is recommended. Notwithstanding alignment with industry forces, strict application of cost, differentiation, or focus strategy is not practical. Honeywell has the management support, resources, and organizational capability to support this combined strategy.