Air Liquide

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This report on Air Liquide is part of our research into the 10,000 largest companies in the world. We update it frequently to ensure the information is as current as possible.

For Premium members only, full access to this study on Air Liquide, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis and a myriad of additional high value sections is available.

We identify potential new products and services, forecast future market trends, and look for potential synergies between Air Liquide and other organisations, all separate from the analysis-driven sections.

Company Description

Air Liquide is a French multinational company that is headquartered in Paris and was founded in 1902. Its main products and services include industrial and medical gases, technologies and services for the energy and healthcare markets. Air Liquide serves markets across the globe, ranging from healthcare, energy, automotive and chemicals.

Industry Overview

Air Liquide operates in the industrial gases industry, where the total market size was estimated at USD 79.3 billion in 2019. Tens of thousands of employees are employed in the industry across the world, with the majority of them based in North America, Europe, Asia Pacific and the Middle East. Air Liquide is a major player in the industrial gases industry, with a presence in more than 80 countries and over 65,000 employees worldwide.

Industry Classification

In terms of formal classification, Platform Executive has tagged Air Liquide as a business operating within the Chemicals industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Gas mixtures for controlling plant metabolism
Patent ID: US10461906B2
Date: May 28, 2019.

Patent Title: Process for producing a gas mixture for the control of plant metabolism
Patent ID: US10459524B2
Date: May 28, 2019.

Patent Title: Process for producing a gas mixture for the control of plant metabolism
Patent ID: US10459358B2
Date: May 28, 2019.

Patent Title: Device for producing a gas mixture for the control of plant metabolism
Patent ID: US10459322B2
Date: May 28, 2019.

Patent Title: Process for producing a gas mixture for the control of plant metabolism
Patent ID: US10459318B2
Date: May 28, 2019.

Patent Title: Process for producing a gas mixture for the control of plant metabolism
Patent ID: US10459314B2
Date: May 28, 2019.

Patent Title: Gas mixtures for controlling plant metabolism
Patent ID: US10459312B2
Date: May 28, 2019.

Patent Title: Process for producing a gas mixture for the control of plant metabolism
Patent ID: US10459308B2
Date: May 28, 2019.

Patent Title: Device for producing a gas mixture for the control of plant metabolism
Patent ID: US10459306B2
Date: May 28, 2019.

Patent Title: Process for producing a gas mixture for the control of plant metabolism
Patent ID:

Major Products & Services

The main products and/or services commercialised by this business include the following:

Industrial and medical gases
Gas welding, cutting, and safety equipment
Process engineering, installation, and maintenance services
Specialty gases
Electronic and metrology services
Automated processes
Hydrogen fueling and storage solutions
Air Liquide Healthcare services
Hydrogen Mobility services
Carbon dioxide capture and storage solutions
Energy storage solutions
Automated storage and retrieval systems

Key Competitors

We have identified the following organisations as being key competitors:

Praxair
Linde Group
Airgas
Matheson Tri-Gas
AirProducts
Taiyo Nippon Sanso
Airwater
Messer Group
Showa Denko
Airtec Corporation

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Air Liquide's customers include industrial and medical gas users, as well as companies that need specialty gases and chemicals for research, production, and other applications.

2. Employees: Air Liquide's employees are the key to its success and are essential for achieving its goals.

3. Suppliers: Air Liquide requires a wide range of suppliers, from raw materials to equipment and technology.

4. Investors: Air Liquide's investors provide capital and resources to help the company grow and develop.

5. Government: Air Liquide is subject to a range of regulations, taxes and other measures imposed by governments.

6. Competitors: Air Liquide faces competition from other firms in the industrial and medical gas industry.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Air Liquide different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Air Liquide and its position within the marketplace.

Air Liquide offers a comprehensive portfolio of products and services to meet the needs of customers in the industrial, commercial and municipal sectors. Our solutions provide reliable, cost-effective and environmentally-friendly solutions to protect people, property, and the environment.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Global Presence: Air Liquide has a presence in over 80 countries and serves customers in a wide range of industries, including healthcare, energy, industry, and food and beverage. This global presence gives Air Liquide a competitive advantage by allowing them to rapidly deploy resources and technology to customers around the world.

Innovative Technology: Air Liquide is constantly developing innovative technologies to meet the needs of its customers. These include advanced gas solutions, medical gas solutions, and advanced materials.

Expertise and Experience: Air Liquide has decades of expertise in the fields of industrial and medical gases, as well as a vast range of global experience. This allows them to provide comprehensive solutions to their customers in a timely and cost-effective manner.

Financial Strength: Air Liquide is financially strong, with a strong balance sheet and a healthy dividend. This means that customers can be assured of the company's long-term stability and commitment to their needs.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Industrial customers
Medical customers
Energy customers
Electronics customers
Automotive customers
Food and beverage customers
Home care customers
Pharmaceutical customers
Chemical customers
Aerospace customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increasing Demand for Sustainability: Air Liquide is increasingly being faced with the challenge of providing sustainable solutions for their customers. This includes reducing the environmental footprint of their products, such as the use of renewable energy sources and more efficient production processes. This trend is likely to continue in the coming years, and Air Liquide will need to stay ahead of the curve in order to remain competitive.

Growing Focus on Automation: Automation has been a major trend in many industries over the past decade, and Air Liquide is no exception. Automation can help to reduce costs and improve efficiency, and Air Liquide will need to keep up with the latest technologies in order to remain competitive.

Rising Demand for Personalised Solutions: Customers are increasingly expecting personalised solutions for their needs. Air Liquide will need to be able to offer customized solutions to meet their customers’ needs in order to remain competitive.

Increasing Need for Data Security: As data becomes increasingly important, Air Liquide will need to ensure the security of their customers’ data. This will include the use of secure networks, encryption, and other security measures to make sure that their customers’ data is kept safe.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Air Liquide include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="AI.PA" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Customised Hydrogen Fueling Solutions - Air Liquide could create customized hydrogen fueling solutions for customers who need specific solutions for their vehicles or applications.

Air Quality Monitoring and Analysis Services - Air Liquide could offer air quality monitoring and analysis services to customers who need to check air quality in their industrial or commercial environments.

Industrial Gas and Equipment Maintenance Services - Air Liquide could provide maintenance services for industrial gas and equipment to ensure optimal performance and safety.

On-Site Hydrogen Generation - Air Liquide could offer on-site hydrogen generation services to customers who need a reliable and cost-effective source of hydrogen fuel.

Air Liquide Fuel Cells - Air Liquide could develop and sell fuel cells that could be used to power vehicles or other applications.

Air Liquide Renewable Energy Solutions - Air Liquide could create renewable energy solutions that could be used by customers to reduce their reliance on traditional energy sources.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Automotive companies such as Toyota, Honda, and Volkswagen
2. Heavy industry companies such as ExxonMobil, Marathon Oil, and Chevron
3. Chemical companies such as DuPont, Dow Chemical, and BASF
4. Power companies such as Duke Energy, Southern Company, and Entergy
5. Healthcare organisations such as hospitals and nursing homes
6. Technology companies such as Apple, Microsoft, and Google
7. Universities and other research institutions
8. Environmental organisations such as Greenpeace and the Sierra Club

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

The Porters 5 forces are:

1. Threat of new entrants: HIGH

2. Bargaining power of buyers: MEDIUM

3. Bargaining power of suppliers: MEDIUM

4. Threat of substitute products: HIGH

5. Competitive rivalry: HIGH

The company scores MEDIUM to HIGH in all of the categories except for competitive rivalry, where it scores high. This means that the company faces a lot of competition from other companies in the same industry.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Air Liquide's customers include industrial gas users, healthcare professionals, and individuals. Industrial gas users include various industries such as food and beverage, electronics, and medical device manufacturing. Healthcare professionals include hospitals, clinics, and medical centers. Individuals include those who purchase oxygen tanks for home use.

Actors: The actors involved in Air Liquide's business include the customers, employees, suppliers, and distributors. Employees are responsible for providing customer service, managing production, and research and development. Suppliers provide the raw materials and components used to create the industrial gases. Distributors are responsible for delivering the gases to the customer.

Transformation process: Air Liquide's transformation process involves transforming raw materials into industrial gases. This process involves chemical reactions, distillation, and other processes to produce the desired gases.

World view: Air Liquide's world view is focused on providing safe, reliable, and innovative industrial gases to its customers. They believe in creating value for their customers through their products and services.

Owners: Air Liquide is a publicly traded company with its shares listed on the Euronext Paris stock exchange. The company is owned by its shareholders, who are responsible for electing the Board of Directors.

Environmental constraints: Air Liquide is committed to reducing its environmental impact by focusing on reducing energy consumption, reducing waste, and improving air quality. The company is also committed to developing new technologies that reduce emissions and promote sustainability.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Air Liquide business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Air Liquide has a strong presence in key global markets, with over 700 locations in more than 80 countries.

2. The company has a diversified product and services portfolio, with a focus on industrial gases, medical gases and related equipment and services.

3. Air Liquide has a long history of financial stability and profitability, with a strong balance sheet and cash flow.

4. The company has a strong commitment to safety, health and the environment, with a comprehensive safety management system in place.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Leveraging Air Liquide's global presence: Air Liquide has a network of over 8,000 employees and over 1,400 production sites in 79 countries. This global reach can be used to increase market share and expand into new markets, allowing Air Liquide to reach new customers and generate more revenue.

2. Investing in Research and Development: Air Liquide invests significantly in Research and Development, spending over $1.7 billion on R&D in 2018. This investment allows Air Liquide to stay at the forefront of the industry and develop new technologies and applications, such as hydrogen fuel cells and new medical gases.

3. Investing in renewable energy sources: Air Liquide has invested heavily in renewable energy sources, such as solar and wind power. By investing in renewable energy sources, Air Liquide can reduce its carbon footprint and become more energy efficient, while also creating new sources of revenue.

4. Innovating in digital technologies: Air Liquide is investing in digital technologies such as artificial intelligence, machine learning, and the Internet of Things to improve operational efficiency and reduce costs. By leveraging digital technologies, Air Liquide can increase customer satisfaction, improve customer service, and reduce operational costs.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of geographical diversity: Air Liquide is present in more than 80 countries, but almost 60% of its revenue comes from Western Europe. This exposes the company to regional economic risks.

2. Dependence on a few key customers: Air Liquide has a small number of customers that account for a large share of its revenue. Losing one of these customers could have a significant impact on the company.

3. Limited product range: Air Liquide offers a limited range of products and services compared to its competitors. This could limit its ability to grow in the future.

4. High debt levels: Air Liquide has a high level of debt, which could put pressure on its cash flow and limit its ability to invest in future growth.

Threats

Below is a list of the threats we have identified for the business:

1. Competition: Air Liquide is facing increasing competition from other major players in the industry, such as Praxair and Linde, who have more resources and infrastructure to compete in the market.

2. Cost Pressure: Air Liquide is under increasing pressure to reduce costs while maintaining high quality products and services. This has led to a decrease in profitability.

3. Regulatory Changes: Air Liquide is facing increasing regulation from government bodies and environmental standards. This could increase costs and decrease profits.

4. Technological Changes: Air Liquide is also facing the threat of new technology, such as renewable energy sources, which could disrupt the current market and put the company in a difficult position. Furthermore, the company has to keep up with the changing technology in order to remain competitive.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Air Liquide. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Air Liquide, as well as areas where the company needs to improve its operations or strategy.

Company: Air Liquide is a French multinational corporation that specializes in industrial gases and services for the industry and healthcare sectors. Founded in 1902, the company operates globally and has presence in more than 80 countries with over 65,000 employees.

Collaborators: Air Liquide collaborates with its partners to deliver innovative solutions, such as its technology platform that is designed to help customers improve their performance and energy efficiency. The company also provides technical services and training to its customers.

Customers: Air Liquide serves a wide range of customers in the industrial, healthcare, and energy sectors. It provides its services to medical centers, research centers, commercial businesses, and universities.

Competitors: Air Liquide's main competitors in the industrial gases and services sector include Linde Group, Air Products, and Praxair.

Content: Air Liquide's content is focused on topics such as its products and services, sustainability, innovation, and its industry insights. It also provides educational resources such as its "Knowledge Bank" and "Innovation Hub" to help customers stay up-to-date on the latest trends and technologies.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Air Liquide as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Air Liquide forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 29th May 2023

Industry Keywords

Related keywords:

Air gas Industrial Gases Liquide

ENGIE

Surgutneftegas