Business Analysis of Seagate Technology

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Seagate Technology

SEAGATE TECHNOLOGY

Business Overview

Seagate Technology plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. The company manufactures and distributes hard disk drives, solid state drives and their related controllers, solid state hybrid drives, and storage subsystems. Its products are used in enterprise servers and storage systems applications; client compute applications, primarily for desktop and mobile computing; and client non-compute applications, including various end user devices, such as portable external storage systems, surveillance systems, network-attached storage, digital video recorders, and gaming consoles. The company offers external backup storage solutions under the Backup Plus and Expansion product lines, as well as under the Maxtor and LaCie brand names available in capacities up to 120 terabytes. It sells its products primarily to original equipment manufacturers, distributors, and retailers. Seagate Technology plc was founded in 1979 and is headquartered in Dublin, Ireland.

Seagate Technology

Seagate Technology


R&P Rank: 259
Sector: Technology
Industry:Computers Systems and Peripherals
H.Q Location:Not In U.S.A.
Website: www.seagate.com
Company Address:
38/39 FITZWILLIAM SQUARE, DUBLIN, IRELAND
Ph:3531-234-3136

Business Analysis of Seagate Technology

The Technology Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Seagate Technology compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Seagate Technology to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Seagate Technology with an interactive chart.

  1. Revenue Growth: Seagate Technology reported a revenue growth of -18.8% year-on-year during 2016. Computers Systems and Peripherals Industry grew at -7.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Seagate Technology spent 76.6% of its total revenues on COGS. Computers Systems and Peripherals industry average (COGS share of revenue) in the same period was 65.0%
  3. R&D share of Revenues: As a percentage of revenue, Seagate Technology spent 11.1% of its total revenues on R&D. Computers Systems and Peripherals industry average R&D spending in the same period was 5.3%
  4. SG&A share of Revenues: As a percentage of revenue, Seagate Technology spent 5.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Computers Systems and Peripherals industry average SG&A spending in the same period was 8.1%
  5. Inventory share of Revenues: As a percentage of revenue, Seagate Technology spent 7.8% of its total revenues on Inventories. Computers Systems and Peripherals industry average Inventory spending in the same period was 3.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Seagate Technology invested 13.6% of its total revenues on Accounts Payable (A/P) Computers Systems and Peripherals industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Seagate Technology invested 11.8% of its total revenues on Accounts Receivable (A/R). Computers Systems and Peripherals industry average Accounts Receivable investment in the same period was 13.0%
  8. PP&E share of Revenues: As a percentage of revenue, Seagate Technology invested 19.4% of its total revenues on Property, Plants, and Equipments (PP&E). Computers Systems and Peripherals industry average PPE investment in the same period was 11.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Seagate Technology invested 15.1% of its total revenues on Intangibles. Computers Systems and Peripherals industry average Intangibles investment in the same period was 12.0%
  10. Net Margins: Seagate Technology Net Margins in the year 2016 were 2.2%. Computers Systems and Peripherals industry average Net Margins in the same period were 15.9%

Sector and Industry Association of Seagate Technology

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Seagate Technology is associated with Technology Sector and Computers Systems and Peripherals Industry.

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

  • Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
  • Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
  • Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
  • IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
  • Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
  • Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
  • Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

Industry Ranking of Seagate Technology

With $11.2 billion revenues, Seagate Technology ranked number 4 of all the companies in the US Computers Systems and Peripherals industry. There were a total of 20 public companies in the US Computers Systems and Peripherals industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Computers Systems and Peripherals industry by revenues during 2016 were:

  1. Apple ($215.6 billion)
  2. HP ($48.2 billion)
  3. Western Digital ($13 billion)
  4. Seagate Technology ($11.2 billion)
  5. NetApp ($5.5 billion)
  6. Diebold Nixdorf ($3.3 billion)
  7. Teradata ($2.3 billion)
  8. Super Micro Computer ($2.2 billion)
  9. AVX ($1.2 billion)
  10. Electronics for Imaging ($992.1 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Seagate Technologyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of seagate-technology

Apple (AAPL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Apple Inc with $216 billion revenues in the year 2016 was the number 1 Computers Systems and Peripherals company. Read this report to know the top competitors of Apple and identify growth and cost optimization opportunities of Apple

HP (HPQ) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

HP Inc with $48 billion revenues in the year 2016 was the number 2 Computers Systems and Peripherals company. Read this report to know the top competitors of HP and identify growth and cost optimization opportunities of HP

Western Digital (WDC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Western Digital Corp with $13 billion revenues in the year 2016 was the number 3 Computers Systems and Peripherals company. Read this report to know the top competitors of Western Digital and identify growth and cost optimization opportunities of Western Digital

NetApp (NTAP) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

NetApp Inc with $6 billion revenues in the year 2016 was the number 5 Computers Systems and Peripherals company. Read this report to know the top competitors of NetApp and identify growth and cost optimization opportunities of NetApp

Diebold Nixdorf (DBD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Diebold Nixdorf, Inc with $3 billion revenues in the year 2016 was the number 6 Computers Systems and Peripherals company. Read this report to know the top competitors of Diebold Nixdorf and identify growth and cost optimization opportunities of Diebold Nixdorf

Teradata (TDC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Teradata Corp with $2 billion revenues in the year 2016 was the number 7 Computers Systems and Peripherals company. Read this report to know the top competitors of Teradata and identify growth and cost optimization opportunities of Teradata

Revenues Analysis

Seagate Technology (STX) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Seagate Technology Plc (STX) from 2012 to 2016. Seagate Technology generated a total of $11.2 billion revenues during 2016. Seagate Technology reported a revenue growth of -18.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

Seagate Technology (STX) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Seagate Technology Plc (STX) from 2002 to 2016. Seagate Technology generated a total of $11.2 billion revenues during 2016. Seagate Technology reported a revenue growth of -18.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

Seagate Technology (STX) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Seagate Technology Plc (STX) revenue growth with Computers Systems and Peripherals industry growth during the last five years from 2012 to 2016. Seagate Technology reported a revenue growth of -18.8% year-over-year during 2016. The Computers Systems and Peripherals industry growth was -7.5% year-over-year during 2016. Seagate Technology growth was slower than the industry during 2016.

Profit Analysis