In our previous article, we studied a detailed SWOT Analysis of BMW. Today in this article we will study about SWOT Analysis of BASF India. We will also take a look at quick stats, products as well as company history.
BASF India is known for its chemistry, they are known for their chemicals, plastics, performance products, and crop protection products for oils and gas. They are the world’s leading chemical company in India, and they believe in developing innovative solutions for customers around the world. Their employees have passion & determination, due to that they are leading.
BASF India’s marketing strategies help in boosting their growth, this is another reason why they are leading. After covid almost every business is going online, so you must know how to do marketing online means how to promote products & services through digital marketing. So if you are interested in learning the latest marketing efforts which are digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we go into the SWOT Analysis of BASF India, let us know about BASF India as a company.
About BASF India
BASF India is a German multinational chemical company. They are known as the largest chemical producer in the world. The BASF India Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia, the Americas, and Africa. To produce dyes, Engelhorn used the byproduct of gasworks which is tar and that’s how BASF India was formed slowly.
At the end of 2019, the company employed almost 1,20,000 people, & also in 2019, they recorded sales of 59.3 Billion Euros. The company’s primary focus is to expand its international activities in Asia. Also, If we see their stock portfolio, they are listed on Frankfurt as well as Bombay Stock Exchange. Their shares are performing well in past years, One can get good returns from BASF India. The company is currently planning to slowly expand in Asian countries.
|No. of Employees||117,000+|
|Market Cap||$71.91 Billion (2022)|
|Annual Revenue||€59.316 Billion (2019)|
|Net Income/ Profit||€8.421 Billion (2019)|
Products of BASF India
BASF India has been in the Chemical industry for more than a century and deals in:
- Performance chemicals
- Crop technology
- Crude oil and natural gas exploration and production
Competitors of BASF India
BASF India’s top five major competitors are:
- Dowd Point
Now that we have understood the company’s core products and services, let’s dive deep into the SWOT analysis of BASF India.
SWOT Analysis of BASF India
SWOT analysis is a study that is undertaken by the majority of companies to determine their core strengths, weaknesses, opportunities and threats. It is a framework that is used to evaluate a company’s competitive position which later helps in strategic planning. SWOT analysis can be conducted by any popular brand or any brand which is still new in the market can make use of this template to evaluate internal and external variables that might influence the brand authority and market development.
Below is a step-by-step detailed guide to help you with the SWOT analysis of BASF India.
Strengths of BASF India
The strength of a company is something that helps the company to grow in the long run and also helps to earn maximum profits with their full use of resources efficiently.
- Massive Reach: The BASF India Group comprises subsidiaries and affiliates in more than 80 countries and operates in six integrated production facilities and 390 other production facilities in Europe, Asia, Australia, the United States, and Africa.
- Skilled Employees: Their staff contributes significantly to the success of BASF India. They want to attract and retain talented people in their company and support them in their development.
- Cost Reduction: Due to its massive reach, they operate in six integrated production facilities, which helps them to produce more at less cost.
- Brand Name: BASF India has made their reputation, they are the leaders in chemicals, they are very highly reputed from the list of their competitors.
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- Dealer’s Agencies: BASF India has a high number of dealers in pan India, that are supporting BASF India by selling their different products. They do take part in the company’s training.
- Financial Position: BASF India has a very strong financial position in the market with consecutive profits over the years along with accumulated profit reserves which can be utilised for future expenditures or marketing activities.
Weaknesses of BASF India
The weaknesses are a major drawback that stops the organisation from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:
- Research and Development: BASF India has a good share of expenditure on the research and development department but it is spending way less than a few of the players within the industry which have benefitted as a result of their innovative products.
- Diversity in the Workforce: The local workers contribute to the majority of the workforce at BASF India making it difficult for outsiders to adjust and hence resulting in the loss of talent.
- High Employee Turnover Rates: BASF India has a very high employee turnover rate as compared to its competitors which means it spends a lot on training activities as employees keep leaving and joining.
- Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas BASF India needs to invest more money in technology to integrate the processes across the board. Currently, the investment in technology is not on par with the vision of the company.
- Limited Success Across the Core Business: Although BASF India is one of the leading organisations in its industry it faces challenges in moving to other product segments with its present culture.
- Abandoned Manufacturing: Despite its size and global presence, BASF India has received relatively little public attention since it abandoned manufacturing and selling BASF India-branded consumer electronics products in the 1990s.
Opportunities of BASF India
Opportunities are the favourable external factors that may give the organization a competitive advantage over others. The opportunities of BASF India are as follows:
- Social Media: Over the years the number of active users on social media channels has increased and with this BASF India can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.
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- Transport Industry: The transport industry has been booming and is expected to boom in the next few years as well which has resulted in more demand for BASF India products which is helpful for BASF India to scale its business.
- Globalisation: Increased globalisation doesn’t restrict BASF India anymore to conducting activities in its own country which can act as an opportunity to extend operation in other countries and thus enter new markets and unleash the potentials of other new markets.
- Population: The population has been growing and is expected to grow at a positive rate in the upcoming years. This is beneficial for Nordea as there will be an increase in the number of potential customers that it can target.
- Expansion to Other Global Markets: The company is planning to expand its international activities with a particular focus on Asia. This serves them as an opportunity to acquire a new customer base.
Threats of BASF India
Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of BASF India are as follows:
- Technological Advancements: The technological advancements by a few competitors can pose a threat to BASF India as today’s customers are more attracted to new technological advancements and may be lost to competitors’ offerings thus reducing the market share of BASF India.
- Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
- Environmental Record: BASF India has been criticized for being the top polluter of water and air in 2018 and still it is. Because of its chemical composition and vast activities, there is a huge climate change and greenhouse gas emissions.
- Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like BASF India because it extends service internationally while its suppliers are local.
This ends our complete SWOT analysis of BASF India. Let us conclude our learning below.
BASF India is a well-known insurance brand with a significant global presence. In the SWOT analysis of BASF India, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong distribution network and has reached across all the markets it serves, but suffers from an increasing number of suppliers in the same space and better R&D efforts by its competitors.
Also, one point not to miss out on is that BASF India is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.
We hope this blog on the SWOT Analysis of BASF India has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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