ALSO Holding SWOT Analysis

ALSO Holding's financial performance is a significant strength, highlighted by impressive growth figures. In the first half of 2025, the company reported a substantial 35% increase in revenue and a 34% rise in EBITDA, showcasing its expanding market presence and operational efficiency. This consistent upward trajectory in profitability is further evidenced by a remarkable 13-year streak of consecutive dividend increases, signaling strong financial health and a commitment to shareholder value.

The company's substantial market reach, encompassing 31 European countries and global PaaS partners, is a significant advantage. This extensive network, built over 13 years, supports approximately 135,000 resellers with a broad ICT product and service portfolio.

ALSO Holding's financial performance is a key strength, with H1 2025 revenue up 35% and EBITDA up 34%. This growth is supported by a 13-year streak of consecutive dividend increases, demonstrating financial stability and shareholder value.

A core strength is ALSO's strategic focus on digital platforms and emerging technologies like cloud, AI, cybersecurity, and IoT. The cloud platform saw a 34% user increase in H1 2025, directly contributing to revenue and positioning the company for future growth.

ALSO's proven ability to successfully acquire and integrate businesses, exemplified by the planned 2025 merger with Westcoast, is a significant strength. This 'Buy&Build' strategy consistently expands market coverage and enhances operational expertise.

While ALSO Holding's acquisition strategy is a key strength, a high volume of M&A activity inherently brings potential integration challenges. Successfully harmonizing diverse processes, IT systems, and human resources across newly acquired entities demands substantial resources and meticulous management. For instance, in 2023, ALSO Holding completed several acquisitions, and the ongoing integration of these businesses requires careful attention to avoid operational disruptions.

The company's reliance on the ICT market makes it vulnerable to economic downturns and shifts in investment. For example, a slowdown in consumer spending observed in early 2024 across key European markets negatively impacted ALSO's revenue, demonstrating this sensitivity.

Intense competition within the IT distribution sector, with major global players and specialized regional firms vying for market share, presents a constant challenge. This necessitates continuous innovation and strategic differentiation to maintain a competitive position in a market valued at approximately $450 billion in 2023.

The company's aggressive acquisition strategy, while a growth driver, introduces significant integration risks. Successfully merging diverse operational systems, processes, and corporate cultures from multiple acquisitions demands substantial management attention and resources to prevent disruption.

Operating internationally exposes ALSO Holding to currency exchange rate fluctuations, which can create volatility in financial reporting. For instance, negative currency effects in 2024 contributed to slower revenue growth compared to the prior year.

The B2B e-commerce and information services sectors are seeing strong expansion, with a notable move towards cloud solutions and online marketplaces. These digital platforms are transforming how businesses buy and sell, and this trend is projected to accelerate.

B2B marketplaces are fundamentally changing procurement processes. For instance, the global B2B e-commerce market was valued at approximately $10.7 trillion in 2023 and is expected to grow significantly in the coming years, driven by digital transformation initiatives.

ALSO's existing B2B marketplace and its comprehensive cloud service portfolio are perfectly positioned to capitalize on these evolving market dynamics. This alignment presents substantial opportunities for ALSO to expand its reach and revenue streams within these growing segments.

The expanding global IT market, driven by digital transformation and emerging technologies like AI and IoT, offers significant growth potential for ALSO. The company's focus on cloud services and digital solutions aligns perfectly with this trend, allowing it to capture a larger market share. For example, the global AI market exceeded $200 billion in 2023, indicating substantial demand for advanced IT solutions.

ALSO's strategic geographical expansion into markets like the UK, Ireland, and France, coupled with its 'Buy&Build' strategy, presents a clear path for increased market penetration and revenue diversification. The B2B e-commerce and information services sectors are also growing rapidly, with a strong shift towards online marketplaces and cloud solutions, areas where ALSO is already well-positioned.

The IT industry's increasing adoption of subscription-based cloud services, such as SaaS and PaaS, provides predictable revenue streams and fosters stronger customer relationships. The global cloud computing market was projected to surpass $1.3 trillion by 2024, underscoring the immense opportunity in 'as-a-service' models.

ALSO's successful acquisition track record and its strategic 'Buy&Build' approach for 2025 are key opportunities to expand its ecosystem and respond swiftly to market changes. This strategy enables the company to integrate synergistic businesses, accelerate market entry, and diversify its revenue base.

The Information and Communication Technology (ICT) sector is characterized by relentless innovation, meaning hardware, software, and services can become outdated very quickly. For ALSO, this necessitates constant adaptation of its product portfolio and service offerings to stay competitive. For instance, the rapid evolution of cloud computing and AI technologies in 2024-2025 demands continuous investment in new solutions and partner ecosystems.

Failure to align with emerging technological trends, such as the increasing demand for edge computing solutions or advanced cybersecurity protocols, could significantly impact ALSO's market position and customer demand. The company's ability to anticipate and integrate these shifts is crucial for sustained growth and relevance in the dynamic tech landscape.

The ongoing global economic uncertainty, marked by persistent inflation and potential recessionary pressures in key markets, poses a significant threat to ALSO Holding. These macroeconomic headwinds can directly dampen IT spending by businesses, leading to slower demand for technology solutions and impacting revenue growth. For example, the World Economic Forum's 2024 outlook highlighted these concerns, projecting a challenging environment for many industries.

Direct sales by vendors, bypassing traditional distributors like ALSO, represent a growing threat. As technology companies increasingly leverage e-commerce and direct-to-customer (DTC) strategies, they can capture a larger share of the profit margin, directly impacting ALSO's business model. Many major tech players are actively expanding their DTC initiatives, aiming to build closer relationships with end-users.

The rapid pace of technological innovation in the ICT sector means that products and services can quickly become obsolete. For ALSO Holding, this necessitates continuous adaptation of its product portfolio and service offerings to remain competitive. The accelerating development in areas like AI and cloud computing in 2024-2025 demands ongoing investment in new solutions and partner ecosystems to avoid market irrelevance.

Data security and privacy risks are substantial for a major technology provider like ALSO. The sheer volume of data handled makes it a prime target for cyber threats, and a breach could severely damage its reputation and financial standing. The global average cost of a data breach reached an estimated $4.45 million in 2024, underscoring the significant financial implications of such incidents.