Swot analysis
Download as PPTX, PDF3 likes550 views
The document discusses SWOT analysis of MRF Ltd., an Indian tire manufacturing company. It outlines MRF's strengths such as market leadership, reliability, innovation and customer focus. Weaknesses include capital intensity and limited product range. Opportunities exist in automotive industry growth while threats include price competition and rising raw material costs. The SWOT analysis is a planning tool that evaluates internal strengths/weaknesses and external opportunities/threats to aid strategic decision making.
Swot analysis
- 2. It is a non-financial planning tool. It links the analysis in terms of advantages and disadvantages; and the internal and external business environment (in a matrix format). The Strengths and Weaknesses are defined by measures such as market share, loyal customers, level of customer satisfaction and product quality. Opportunities are new potential areas for business in the future, such as new markets, or new conditions in existing markets. Threats describe how the competition, new technology, or other factors in the business environment may affect the business's development.
- 3. Consolidate strengths Minimizes Weaknesses Helps to Grab Opportunities Minimizes Threats Facilitates Planning Facilitates Alternative Choices Helps to Innovate Ensure Survival & Success
- 4. Always analysis in relation to your core values, mission, mandate, goals, vision. Keep your SWOT short and simple. Avoid complexity and over analysis. Empower SWOT with a logical conceptual framework.
- 5. Even if you already know what a SWOT analysis is and what it’s used for, it can be tough to translate that information into something you can action. It can also be hard to examine your own business with a critical eye if you’re not entirely sure what you should be examining.
- 7. Internal factors:-The initial two letters in the short form, Strengths & Weaknesses, denote internal factors. Physical resources ( location, equipment & facilities) Human resources (employees, targeted audiences ,volunteers) etc
- 8. External factors:-The last two letters in the short form, Opportunity and Threats, denote external factors. Market trends ( technology, product change, requirements by customer) Funding ( legislature, donations, foundations) Demographics ( age, race, culture, gender)
- 10. Apollo Tyres 20% JK Tyres 14% TVS Srichakra 4% CEAT 12% MRF 28% Birla Tyres 7% Goodyear 3% Others 12% MARKET SHARE OF TYRE INDUSTRY(%)
- 11. Company has remained in no.1 position in tyre industry and was the first to reach annual turnover of Rs.5000 Crore in India Improved capacity utilization and overall cost efficiency. Reliability and Durability. Product Innovation. Customer focus. Strong distribution network. High importance to R&D and conservation of energy.
- 12. It enjoys strong brand equity and loyalty of customers. Advertising as India eco-friendly car tyre making company. MRF won the JD Power Award for the record 11th time in 2014.
- 13. Lock outs due to labor issues impact the sales. (In 2011, MRF plant in Kottayam in Kerala was forced a lockout for 2 days ) Huge capital required.(The production processes requires high capital & the research procedures.) Product Range. (MRF exports their products to foreign countries its product range is mainly concentrated on the Indian conditions.)
- 14. Existing and potential growth of automobile industry. Government’s focus on development and infrastructure. Reduction in interest of loans. Change in the tyre patterns of commercial vehicles from bias to radial patterns. Reserve amounted INR 1686.44 crores which can be utilised for their future plans which they are going to establish fund can be collected from the firm itself.
- 15. MRF is also capturing toys section, manufacturing facilities in Goa. More tie-ups with Automobile companies as it’s mainly into B2B market.
- 16. Price wars with other competitor. Stiff competition from national and international brands. Cheaper technologies. Volatility in prices and availability of raw material as India's rubber production is less than its demand. Government Policies w.r.t export duties, import duties, tax levied on automobile industries and economic condition of nation as it determines the sale of automobiles.
- 17. Volatility in industrial relation. Rising Rubber Price. Intense competition due to presence of other global brands. Cheaper tyre from China although the product quality is low as well as the price. Introduction of other transport facilities like metro, monorails and local trains keeping pollution hazards caused by combustion of automobile fuels.
- 20. Leader in Herbal Digestives with 90% market share. Strong brand image & product development. Dabur is India’s fourth largest company in FMCG segment. The product length includes around 300 prescribed products.
- 21. Years of experiences from 1884. Dabur product categories include health care, personal care, foods, home care.
- 22. Lack of awareness of products to customers. Low investment in technology for small scale. Profitability is uneven across product line. No direct retail outlets. No doorsteps delivery.
- 23. Ayurveda as a field is receiving much more attention across the world in the last 2–3 years. Improper and unhealthy food habits due to modernization has forced people to take ayurvedic supplementary like Chavanaprash, Hajmola, and life style medicines. Growing women’s empowerment has made them independent and has made them to be more health and beauty conscious – a segment in which Dabur too is trying to capitalize with its products.
- 24. Overseas dealerships. Export of ayurvedic products. Southern Indian Markert. Oral care segment.
- 25. Kerala is an ayurvedic hub, for most of the treatments. Hence people visit directly and attend health camps to get cured The allopathy players are of major threat as they invest heavily on advertising and distribution of their products through medical representatives etc. Some ayurvedic doctors give their own medicines or give a mixture of Ayurvedic Company’s product without packaging (loose medicines). This reduces the sales in the market and dilutes the brand image.
- 26. Biggest threats to Dabur is from emerging Indian company Patanjali. Slow down in rural demand.