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In-Depth SWOT Analysis of Dhani – A Comprehensive Range Of Products Provider

by | Case Studies | 0 comments

In our previous article, we had done a detailed SWOT analysis of Enel, an Italian Multinational Electricity & Gas Utility Company. In this article, we are going to explain the SWOT analysis of Dhani.

Dhani i.e. Indiabulls Housing Finance started as a leading personal finance business to now offer a comprehensive range of products across both fintech and health tech services. Dhani has continually strived to fulfil the needs of the country and designed offerings made for today and geared its business for tomorrow.

Another characteristic that made Dhani renowned is its marketing actions. Since the world goes online, marketing is transforming its aspects. Are you curious about learning the latest marketing techniques? Check out our Free MasterClass on Digital Marketing 101 by Karan Shah, the CEO and Founder of IIDE. 

Now, we will discover strengths, weaknesses, opportunities and threats covering Dhani. Before we delve into the SWOT analysis of Dhani let’s learn about the company, its history, products, services and competitors.

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About Dhani

SWOT Analysis of Dhani

Dhani is also known as Indiabulls Securities Limited was originally incorporated in India in 1995, its headquarters are located in Gurgaon, Haryana. Dhani is a capital market company that deals in an extensive range of products and services including Dhani’s flagship product, the OneFreedom Card, which offers a credit limit from ₹10,000 to ₹5 lacs at a nominal monthly fee to help customers manage all their financial needs daily. 

Dhani also operates an online store through which customers can get their hands on all daily need items including Personal Care, Kitchen Care, Baby & Mother Care, Stationery, and Healthcare. Another firm Dhani Stocks offers other financial services including investing, trading, and growing their wealth through smart stockbroking solutions.

The company also deals in the health care segment which includes door-step delivery of medical products and supplements that are affordable and exclusively available in the Dhani store. Since its inception, Dhani has grown immensely in every area and today the Dhani family strength is around 10000+ and those people are dedicated to creating a legacy for Dhani as India’s favourite healthcare & financial service provider.

 

Quick Stats on Dhani
Founder Sameer Gehlaut
Year Founded 1995
Origin Gurgaon
No. of Employees 10000+
Company Type Public
Market Cap Rs 3,385.21 Crore (2022)
Annual Revenue Rs 644.42 Crore (2021)
Net Income/ Profit Rs 302.97 Crore (2021)

 

Products & Services of Dhani

Dhani has been a global marketer since 1958 and deals in the following businesses:

  • Transactional finance
  • Online store for household needs
  • Stock trading at zero brokerage
  • Corporate card program
  • Instant doctor consultations


Competitors of Dhani

Competition among businesses may lead to the development of new or improved goods, as well as more efficient operations. Dhani has a few major rival companies around the globe. Some of the top competitors are

  • LIC Housing Finance
  • PNB Housing Finance
  • FL
  • Fullerton India
  • Dewan Housing Finance Corporate


Now that we know about the company’s history, its products, and its close competitors, we can move on to the SWOT analysis of Dhani.


SWOT Analysis of Dhani 

A 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 Dhani 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 Dhani.

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

SWOT Analysis of Dhani - SWOT Infographics of Dhani

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

Strengths of Dhani

Dhani, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.

  • Strong Free Cash Flow: There is a strong free cash flow that puts resources into the hands of the company to expand into new projects. 
  • Good ROI: It is relatively successful in new projects and provides a high return on capital expenditures through the creation of new revenue streams.
  • Strong Brand Portfolio: Over the years Dhani has invested in building a strong brand portfolio. This brand portfolio can be very useful if an organisation wants to expand into new product categories. 
  • Outstanding Performance in New Markets: Dhani has accumulated experience to enter new markets and achieve success. The expansion has helped organisations create new revenue streams and diversify business cycle risks in the markets in which they operate. 
  • Highly Skilled Labour: Highly skilled workforce through successful education and training programs. By investing enormous resources in the training and development of Dhani employees, they not only create highly qualified employees but also motivate them to achieve more. 
  • Mergers and Acquisitions: A track record of successfully integrating additional companies through mergers and acquisitions. Over the past few years, he has successfully integrated several technology companies to optimise operations and establish a stable supply chain.


Weaknesses of Dhani

Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.

  • More Investment is Needed in New Technologies: Given the scale of the expansion and the multiple geographic regions in which the company will expand, Dhani’s overall integrating processes require more money to be invested in technology. Current investments in technology are not aligned with the company’s vision. 
  • Financial Planning is Not Being Performed Properly and Efficiently: The liquid asset ratio and liquidity ratio indicate that a company can use its cash more efficiently than it currently is. 
  • High Labour Outflow: With higher dropout rates compared to other organisations in the industry, Dhani, and has to spend significantly more on employee training and development than its competitors. 
  • Not Very Successful in Integrating Companies with Different Work Cultures: As mentioned earlier, Dhani is successful at integrating small companies. It has its share of failures to merge firms that have different work cultures.
  • High Competition: The daily stock is high compared to its competitors, so the company has to raise more capital to invest in the channel. This could affect the long-term growth of Dhani.
  • Product Marketing: Although the product is successful in terms of sales, its positioning and unique selling proposition are not clearly defined, making it vulnerable to attack from competitors in this sector.


Opportunities for Dhani

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

  • New Environmental Policy: New opportunities will create a level playing field for everyone in the industry. This is a great opportunity for Dhani, Inc. to realise the benefits of new technologies and gain market share in new product categories.
  • New Taxation Policy: New tax policies can have a significant impact on the way Dhani does business and open up new opportunities for them to increase its profitability.
  • Open New Markets Through Government Agreements: New technology standards and government free trade agreements provided to Dhani open up opportunities for Dhani to enter newly developed markets. 
  • New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for Dhani. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
  • Economic Recovery: Economic recovery and rising consumer spending after years of recession and slow industrial growth are opportunities for Dhani to attract new customers and increase market share.


Threats to Dhani

Threats are environmental factors that can harm a company’s development. Here are some of Dhani’s threats:

  • Legal Actions: The Company may face legal action in other markets given the continuing fluctuations in different laws and product standards in those markets.
  • Fierce Competition: Strong profitability has increased the number of players in the industry over the past two years, putting downward pressure on overall revenue as well as profitability.
  • Liability Laws: Vary from country to country Dhani may face a variety of liability claims as a result of these market policy changes. 
  • Quantitative Increases in Commodities: This could jeopardise Dhani’s profitability. A shortage of skilled labour in certain global markets threatens Dhani’s continued earnings growth in the market.
  • Operates Globally: Because the company operates in many countries, it is exposed to currency fluctuations, especially given the unstable political environment in many markets around the world. This may face some challenges in the market and may result in some losses as well.


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

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To Conclude

Dhani is a well-known diversified company with significant global positions. During the SWOT analysis of Dhani, we found that the company is highly dependent and enjoys strong brand awareness and trust from its customers. It has a solid logistic base and covers all markets it serves, but suffers from more active research and development from an increasing number of manufacturers and competitors in the same space.

But being such a huge brand across multiple countries, Dhani should continue to innovate and develop more products and launch them in the market with the best possible marketing strategies.

Especially digital marketing which is vital in today’s growing and expanding world, to get better results and to remain competitive in the market. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of Dhani 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 Dhani, 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 Dhani in the comments section below.

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]

Aditya Shastri

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