Last time we elaborated on the SWOT analysis of the largest mining & non-ferrous metals company in India, Vedanta Resources. This time we’ll tackle the SWOT analysis of Aditya Birla Group in-depth.
Aditya Birla Group is one of India’s biggest corporate group companies, founded by Seth Shiv Narayan Birla in 1857. It is a Multinational Conglomerate Company. They’re truly multinational corporations operating in over 25 countries.
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If you want to learn about how Aditya Birla Group became so successful in India and other countries, in this blog we’ll learn about the SWOT analysis of Aditya Birla Group & decode the answer. Before we dive into the analysis let’s learn about the Aditya Birla Group, its founding, products, financial status, competitors.
About Aditya Birla Group
(Kumar Mangalam Birla – Chairman of Aditya Birla Group, Source: India CSR Network)
Aditya Birla Group of companies is an Indian Multinational Conglomerate Company based in Worli(South Mumbai), Maharashtra, India. Aditya Birla Group is majorly engaged in the business of non-ferrous metals, viscose filament yarn, viscose staple fibre, cement, fertilizers, chemicals, branded apparel, carbon black, sponge iron, telecom, IT services, financial services, insulators & BPO.
Aditya Birla Group was founded by Seth Shiv Narayan Birla in 1857. It is a Multinational Company with over 140,000 active employees working in 30+ countries. Aditya Birla Group is India’s first truly Multinational Corporation operating in over 30 countries, as well as it is the world’s largest producer of viscose staple fibre.
|Founder||Seth Shiv Narayan Birla|
|No. of Employees||140,000 (2021)|
|Market Cap||$ 3.73 Billion (2021)|
|Annual Revenue||$ 46 Billion (2020)|
|Net Income/ Profit||$ 4.52 Billion (2021)|
(Aditya Birla Group Companies, Source: Trade Brains)
Products by Aditya Birla Group
Aditya Birla Group in the industry for more than 150 years and deals with a variety of products:
- Non-ferrous metals
- Textile Business
- Telecom Services
- Financial Services
Competitors of Aditya Birla Group
Aditya Birla Group works on a Multinational level, many other companies like itself. The top competitors of Aditya Birla Group are:
- Mahindra & Mahindra
- USA Rare Earth
Now we have a brief idea of the company’s core business, so let’s dive into the SWOT analysis of Aditya Birla Group.
SWOT Analysis Of Aditya Birla Group
An absolute SWOT analysis of Aditya Birla Group shows the company’s strengths, weaknesses, opportunities & threats. It is a tried-and-true management paradigm that allows Aditya Birla Group to compare its business and performance to the competitors and the industry as well.
SWOT analysis is an excellent way for understanding where the company excels, where the company falls short, developing countermeasures and determining how the company can grow.
To better understand the SWOT analysis of Aditya Birla Group, refer to the infographics below:
So let’s start with a SWOT analysis of Aditya Birla Group:
Strengths of Aditya Birla Group
Strengths are an organization’s unique abilities, these abilities help them to capture a large market share, attract more customers and maximize profits. Following are Aditya Birla Group’s strengths:
- Online Sales: With all these actors working with brands, the Aditya Birla Group’s online presence is quite well. Customers can get hands-on with any products of the group easily through their website, also the fashion brands are available on the e-commerce sites like Flipkart, Amazon, etc.
- Technological Superiority: Managing a multinational corporation, with a wide range of products, the company needs to be well structured physically as well as virtually. And when it comes to technical stability the Aditya Birla Group provides 100% online support 24/7, with a good track record of clients, customers can get their years ago information with a single click from the group’s online portal.
Also, when it comes to online reputation management on social media platforms, Aditya Birla Group is always ahead of its competitors and this is the reason, today Aditya Birla Group is one of the biggest conglomerates in the world. So, when the question comes to how to make your business successful digitally then social media marketing, online reputation management & content strategy are some of the ways to achieve so. You can learn all these digital marketing skills from digital industry experts under one roof, course by course, as per your speed and time, within a week or less than that.
- Brand Recognition is High: Aditya Birla Group is one the largest apparel brand in India, owning over 10 clothing brands like Allen Solly, Peter England, Pantaloons, Louis Philippe, Van Heusen, etc. also the group is also recognised for producing cement, carbon black, textiles, chemicals, etc. It is one of the oldest telecom service providers in India.
- Increasing International Visibility: As we all know, it is a multinational corporation, working in over 30 countries. The group is always trying to expand more, providing employment, trying to capture markets with their products.
- Product Innovation Skills: Aditya Birla Group provides a wide range of newly created products, every year. With being one of the biggest financial institutes in India, the group always comes with attractive loan plans, attractive return on investment plans with their mutual funds & FD’s.
Weaknesses of Aditya Birla Group
Weaknesses are the points that every brand or company needs to improve or get rid of. Weaknesses of Aditya Birla Group are as followers:
- Operational Complexity: With an increasing audience, the group is providing a large number of consumer goods as much as they can. While making adjustments, a small change can make an unexpected impact on operational complexity. Providing a variety of products is causing operational complexity to the group.
- The Processing Chain is Quite Long: Having a huge customer following delays the process of ongoing functions like maintaining a large scale of client records & keeping them up to date every time takes time and while doing all the work simultaneously it delays the ongoing processes.
Opportunities for Aditya Birla Group
Like weaknesses, opportunities are the areas where a company needs to focus, on improving results, increasing sales, and, ultimately, profits.
- E-commerce: Many of us are now making our purchases online. The Aditya Birla Group is the leading fashion brand in India, but while having its products on different e-commerce sites, the company doesn’t have their e-commerce site where customers can explore only Aditya Birla Group’s products. Having their e-commerce site can generate revenue & will increase customer following to the company.
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- Rising Urbanization: With the increase in the rate of urbanization, the company needs to fulfil the demands of the customers, especially those who are from the non-urban area & wants to explore the brand. The study predicts that by the end of 2050 the two-third of the world will be in urban areas. Multinational brands like Aditya Birla Group need to provide the services in baby-urban cities.
Threats to Aditya Birla Group
Threats are the factors that can be harmful to the company’s growth. The following are some of the Aditya Birla Group’s threats:
- Substitution Effect: Due to owning expensive brands like Van Heusen, etc. the target audience of the company is limited. And with competitors giving cheaper products with the same quality, the company can lose market share. If a brand increases its price, customers can choose an alternative brand with a cheaper price.
- Currency Fluctuation Effect: Being a multinational company requires heavy export & import. And with a weaker currency make exports more expensive, while making products cheaper for overseas customers.
For huge corporations like Aditya Birla Group, a SWOT analysis is a great way to break down their complex procedure into simple to understand managerial risks and rewards. This ends our detailed SWOT analysis of Aditya Birla Group. Let us conclude our learning below.
Aditya Birla Group is a well-known corporation with a significant global presence. In the SWOT analysis of Aditya Birla Group, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong customer base with a great track record of millions of people, not just from India but from all over the world.
The company has a strong logistical basis and has reached across all the markets, but suffers from the increasing number of manufacturers in the same field and better R&D efforts by its competitors.
With increasing competition in the market such as fashion, chemicals, finance, etc. companies are trying to win customers with better marketing efforts. In a changing landscape where digital marketing is at its peak, being well knowledgeable about the field is a must for marketing enthusiasts.
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We hope this blog on the SWOT analysis of Aditya Birla Group has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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