SWOT between 2 Indian companies MRF and Dabur

1. By Imran khan.

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.