One of the best ways to develop a picture of any company is with the SWOT analysis -- a look at a company's strengths, weaknesses, opportunities, and threats. Today I'd like to focus on Paychex
- Cost advantages
- Breadth of services
- Market insights
- Name recognition in a fragmented market
- Affords pricing power
Sticky nature of core services:
- Recurring transactions
- High switching costs
- Difficult to reinvest capital at high ROICs
- New services consume managerial mindshare
Cross-selling of new services
Organic market-share gains:
- Unique value proposition
Market is largely untapped
Irrational industry pricing
- Fewer checks cut
- Reduced float
- Lower interest rates
What parts of Paychex's SWOT need more detail? Fill in the blanks by using the comments section below.
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