Last time we discussed the SWOT analysis of Apar Industries which is one of the largest and most renowned manufacturers of conductors, cables, oil and lubricants. This time let’s study the in-depth SWOT analysis of Bharat Dynamics.
Bharat Dynamics, founded in 1970, is the leading manufacturer of defensive products. The company manufactures guided weapon systems and a pool of engineers drawn from Indian Ordnance Factories, DRDO and aerospace industries.
As we know that behind every business’s success there is a huge contribution of marketing efforts. Marketing has evolved with time and today we are in an age of digital marketing which helps organisations with their marketing efforts using different mediums. If you are interested in understanding digital marketing in detail – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we begin with SWOT analysis, let’s know more about the company, the products and services they offer, their financial status and its competitors.
About Bharat Dynamics,
Bharat Dynamics was begun by producing a base for guided missile systems and allied equipment for the Indian Armed Forces under the Ministry of Defence, Government of India. Since its inception, Bharat Dynamics has been working in collaboration with DRDO & foreign Original Equipment Manufacturers (OEMs) for the manufacture and supply of various missiles and allied equipment to the Indian Armed Forces.
Bharat Dynamics has three manufacturing units, located at Kanchanbagh, Hyderabad, Telangana; Bhanur, Medak district, Telangana and Visakhapatnam, Andhra Pradesh. As a part of its growth plan, Bharat Dynamics is placing up one unit at Amravati in Maharashtra to cater to the growing needs of the Armed Forces.
|Chairman||Commodore Siddharth Mishra|
|Origin||Hyderabad, Telangana, India|
|No. of Employees||3030+|
|Market Cap||Rs 13,100.94 Crore (2022)|
|Annual Revenue||Rs 803.91 Crore (2021)|
|Net Income/ Profit||Rs 213.26 Crore (2021)|
Products By Bharat Dynamics
Bharat Dynamics had been in business for over four decades and primarily deals in:
- Surface to Air Missiles
- Air Defence Systems
- Heavyweight Torpedoes
- Air to Air Missiles
- Defence Equipment Manufacturer
- Underwater Weapons and Mines
Competitors of Bharat Dynamics
Bharat Dynamics compete on a global level with several other manufacturers, of which its top competitors include:
- Diehl Defence
- High Impact Technology
- BAE Systems Bofors
- Global Industrial Defence Solutions
Now that we understand the company’s core business, let’s delve into the SWOT Analysis of Bharat Dynamics.
SWOT Analysis of Bharat Dynamics
A SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats that a firm faces. Bharat Dynamics may evaluate its business and performance against rivals and the industry as a whole using this tried-and-true management model.
It’s a great tool for figuring out where the firm shines, where it falters, devising countermeasures, and figuring out how to expand.
To better understand the SWOT analysis of Bharat Dynamics, refer to the infographic below:
So let us start by expanding on the strengths of Bharat Dynamics:
Strengths of Bharat Dynamics
The distinctive qualities that provide a company with an edge in acquiring greater market share, attracting a larger audience, and maximising profitability are essentially its strengths. The following are Bharat Dynamics ’ strengths:
- Company Position: Bharat Dynamics Limited is one of India’s leading in the area of complete solution providers for the Indian Armed Forces and the last 60+ years they have been creating high-quality defensive products benefiting the development of a home market defence industry. The company has 4 manufacturing plants across India precisely producing defensive products that can easily cater to the growing needs of the Armed Forces.
- Business Model: The business model in which Bharat Dynamics deals is not easy to be copied by anyone. Bharat Dynamics gets a full competition advantage in the defence and explosive sector due to fewer competitors.
- The Sector of Presence: Bharat Dynamics not only deals in the manufacturing of defence and weapon products but has also entered into the arena of the refurbishment of old missiles. Presence in almost every essential area opens up revenue streams.
- AI-Based Technologies: Manufacturing technologies and processes to state-of-the-art including industry 4, helps Bharat Dynamics to maintain the highest quality standards. It has also started undertaking the development of products for the Armed Forces with AI Technologies.
- Experience & Innovation: Bharat Dynamics’ extensive experience, expertise and innovation edge are rooted in a strategic blend of talented manpower and technological prowess. They use their rich experience to create sustainable value.
- Product & Service Portfolio: Bharat Dynamics is the market leader when it comes to a variety of products and services. Honestly, the company deals in every nook and corner of defensive products and services including sectors like defence, explosives, and missiles, among others.
- Sustainable Innovation: Bharat Dynamics employ a comprehensive suite of robust best practice policies, and are committed to the safety, health, and wellbeing of their people, communities and the environment. Such dedication and commitment to sustainability show the organisation’s involvement in CSR works.
- Government Support: Bharat Dynamics get immense support from the government of India because the industry deals in the manufacturing of products for India’s defence sector and to keep the sector top of the line, the government has to finance such industries all the time.
Weaknesses of Bharat Dynamics
Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.
- High cost in replacement of Established Expertise: Bharat Dynamics Ltd’s knowledge base is entrusted to a small number of people, and replacing them will be difficult under the current circumstances.
- Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
- Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
- Confusing Portfolio: Bharat Dynamics have expanded its products and services portfolio in an enormous sector and it is difficult to define in which particular sector Bharat Dynamics excel. Bharat Dynamics should now focus on excelling in one sector to generate more revenue streams and create an identity that shows the USP of Solar.
Opportunities for Bharat Dynamics
Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for Bharat Dynamics:
- Accelerated Technological Innovations & Advances: Rapid technical advancements are increasing industry productivity, allowing suppliers to provide a wider range of products and services. This may enable Bharat Dynamics to expand its product portfolio dramatically.
- Government Contracts: Bharat Dynamics should try seeking more government contracts as they deal in products and services that are mostly demanded by the government for the defence sector and industrial development. Hiring contracts will open new revenue streams for Bharat Dynamics.
- Strategic Partnerships: Bharat Dynamics should pave the way to enter into strategic partnerships with foreign original equipment manufacturers, this will lead to opportunities for both to meet the Government of India’s defence requirements, and for the Government in achieving its aspiration of autonomy in defence supply through the development of a home market defence industry.
Threats to Bharat Dynamics
These are the factors that have the potential to harm an organisation. Threats are uncontrollable external factors that might overcome or damage the strength and opportunities.
- Security, Health & Safety: Bharat Dynamics deals with major security threats to its workers and employees as the industry deals in the manufacturing of risky items i.e. defence missiles and underwater weapons. The industry has significant pressure from unions for the safety of its employees.
- Government & Environmental Regulations: The government has slightly different and introduced more strict laws for defence industries to maintain their control over the consumption of natural resources. While on the other hand organisations concerned about the environment also have their eyes on defence industries due to their threat to natural resources and the environment i.e. explosion tests on earth.
- Shortage of Trained Human Resources: Due to significant staff turnover and a growing reliance on new solutions, the firm name may encounter skilled human resource issues in the future.
- Changes in the Prices of Raw Materials & End Products: The products in which Bharat Dynamics deal necessitates the use of fuel, oxidizer nitroglycerin and black powder. All of these resources are limited, and obtaining them is tough. Because it is often difficult to mine in particular places, the prices of raw resources continue to rise, and even the prices of final products fluctuate; this is a threat to Bharat Dynamics.
This ends our comprehensive SWOT analysis of Bharat Dynamics. Let us conclude our learning below.
Bharat Dynamics is a true precision defensive products manufacturer with a global footprint. In the SWOT analysis of Bharat Dynamics, we discovered that the company is a strong market leader in the defence and weapon industry, with excellent brand recognition for its goods.
One of their highlighting strengths is that they can cater to various customer segments with their product range; however, they are suffering from the fact that they must incur significant costs in establishing a new supply chain and logistics network due to the declining importance of traditional networks, as well as steps to reduce personnel turnover.
Defence and weapons is a highly competitive business with several well-known manufacturers. Companies must invest ineffective marketing efforts to stay relevant in such a competitive market. Marketing, particularly digital marketing, has become critical in the contemporary environment. If you are interested in learning more and upskilling, check out Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Bharat Dynamics has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
If you enjoy in-depth company research just like the SWOT analysis of Bharat Dynamics, check out our IIDE Knowledge portal for more fascinating case studies.
Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Bharat Dynamics in the comments section below.