Elaborative SWOT Analysis of Bouygues – A French Industrial Group

Updated on: Jan 30, 2022
SWOT Analysis of Bouygues - Featured Image

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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

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Last time we discussed the SWOT analysis of one of the reputed telecommunication companies, Telstra. This time we will be going to know more about the SWOT analysis of Bouygues.

Bouygues Company is one of the market-leading groups of construction specialists, real estate developers with a proven reputation as network specialists. It is one of the best French mobile communications companies that serve millions of people in France.

The thing which made this company achieve heights of success is its marketing efforts. For the last few years, the marketing strategy of every company is changing day by day. To know more about the changing scenario of marketing, join our Free MasterClass on Digital Marketing 101 by the CEO and founder of IIDE, Karan Shah.

Do you want to know how Bouygues became successful? In this blog, we will get to learn about the SWOT analysis of Bouygues. Before proceeding further let us just know more about the Bouygues as a company.

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About Bouygues,

SWOT Analysis of Bouygues - Bouygues Telecom

Bouygues is a French mobile communication company that gives services within the overseas department of France with head office located at 32 Avenue Hoche in the 8th arrondissement of Paris.

Bouygues was founded as a company in 1952 with the purpose of its founder Francis Bouygues to start road constructing service. Slowly Bouygues started dealing in television media and telecommunications services.

Bouygues telecom operates services in Belgium and MVNO in some communes of the Brussels Region and some regions of Luxembourg. Bouygues customers are 21.9 million in metropolitan cities and 6.35 million households customers are enjoying Bouygues’s high-speed internet access.

 

Quick Stats on Bouygues
Founder Francis Bouygues
Year Founded 1952
Origin France
No. of Employees 129,000
Company Type Public
Market Cap €11.954 Billion (2021)
Annual Revenue €35.55 Billion (2018)
Net Income/ Profit €1.311 Billion (2018)

 

SWOT Analysis of Bouygues - Bouygues Construction


Products & Services by Bouygues 

Bouygues has been in the telecommunication industry for many years and offers:

  • Civil engineering 
  • Real estate development
  • Media
  • Telecommunications services


Competitors of Bouygues

The top 5 competitors of Bouygues are

  • Power Construction Corporation of China
  • Camusat
  • Samsung Engineering
  • Orascom Construction
  • Monty Mobile

So as we got to know about the business of Bouygues, now we will discuss the SWOT analysis of Bouygues.


SWOT Analysis of Bouygues 

SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like BCE (Bouygues Canada Enterprises) to compare its business and performance to that of its competitors.

It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Bouygues.

To better understand the SWOT analysis of Bouygues, refer to the infographics below:

SWOT Analysis of Bouygues - SWOT Infographics of Bouygues

Below is an explicit guide to the SWOT analysis of Bouygues.

Strengths of Bouygues

Bouygues has numerous strengths that help it to thrive in the marketplace. Some of the strengths of Bouygues are

  • Wide Spread Distribution Network: Bouygues has created a reliable distribution network over its 70 years of journey that allows it to reach the majority of its potential market through innovation.
  • Market Position: Bouygues holds a leading market position in the area of paid television. Since its inception, the growth enabled the company to create a new revenue stream and diversify the economic cycle risk in the markets it serves.
  • Well Built Brand Portfolio: Bouygues has spread its presence as a diverse business dealing in major sectors such as construction, telecom and media. It adds up as a strength of the company as a good portfolio through state support helps the company diversify its product line.
  • Broad Product Line: Along with fixed-line internet and mobile telephony services, Bouygues also offers Bouygues Television and European Sports services to its customers at reasonable prices. The network has more than 120+ million viewership. 
  • Social & Environmental Commitment: Since 2006 to control global impact, the company has participated with several other companies such as EDF, BNP Paribas or Saint-Gobain, which promotes sustainable economic development.
  • Customer Satisfaction: Bouygues has been able to achieve high customer satisfaction among current customers and strong brand equity among potential customers due to its offering of high-speed internet services.  


Weaknesses of Bouygues

Some of the weaknesses of Bouygues which they can work upon are

  • Product Forecasting: Not very good at product demand forecasting leading to a higher rate of missed opportunities compare to its competitors.
  • Poor Technological Investments: Bouygues needs to put more money into technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
  • Reliance on French Market for Major Revenue: As Bouygues has its main headquarters in Paris, France it is providing the services more efficiently and gets major revenue from Belgium, Luxembourg and the Caribbean islands. It is mostly dependent on the French market and hence lacks revenue from worldwide.
  • No International Presence: Bouygues currently operates in only 5-6 markets and that only in France. It should consider operating in other countries to expand its business and create strong brand recognition and awareness in the market.


Opportunities for Bouygues

Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for Bouygues are

  • Technological Advancements: The new technology provides an opportunity for Bouygues to practice a differentiated pricing strategy in the new market. It enables the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
  • Opening of New Markets: The adoption of new technology standards and government free trade agreements has provided Bouygues with an opportunity to enter a new emerging market.
  • Affordable Internet Users: According to Statista.com, there are over 4.66 billion active internet users in the world. Bouygues has a huge opportunity to increase its customer base by providing affordable data plans.
  • The Economy is Now Opening: Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Bouygues to capture new customers and increase its market share.
  • Overseas Expansion: Bouygues has its presence only in some areas of France, by initiating to cover the whole of France and other parts of neighbouring countries, Bouygues can gradually build up its stake in the market.


Threats to Bouygues

Threats are environmental factors that can be harmful to a company’s growth. The following are some of Bouygues’s threats: 

  • Counterfeit Products: As Bouygues also deals in selling mobile devices, imitation of counterfeit and low-quality products with Bouygues data plans under the name of Bouygues by fake product sellers can badly affect the name of Bouygues.
  • New Entries: The new entrants like Reliance are gaining market due to some policies and absorbing the market share of the existing telecom services. Hence, Bouygues faces threats from such new brands as it may steal loyal customers.
  • Controversies: Bouygues has been caught illegally employing workers from Poland and Romania exposing them to inhumane working conditions. Such inhumane moves by the company can increase the chances of Bouygues facing strict actions from the labour union.
  • Competitor’s Technical Advancement: The new competitors in the race are with some advanced technology reducing the overall market share of Bouygues.
  • Local Players Playing Globally: Bouygues sells its products and services in the market whereas players who offer communication services globally such as BT and orange are ahead in the market capturing and customer acquisition if compared to Bouygues.

This ends our elaborative SWOT analysis of Bouygues. Let us conclude our learning below.

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To Conclude

Bouygues is a well-reputed company that is a trusted one among the customers in France. In the SWOT analysis of Bouygues, we learnt that it has reached the markets of its nation but is still facing the problem of marketing its products internationally due to fewer funds and inefficient financial planning.

With increasing competition in such markets, companies need to do better digital marketing efforts. In today’s world, people need to know more about the marketing aspects used to boost the company’s growth. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.

We hope this blog on the SWOT Analysis of Bouygues has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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