IIDE Logo
seo courses in chennai- iide logo
Free Registration for IIDE's Digital Marketing 101 Masterclass ends in

Enrol Now

×

Comprehensive SWOT Analysis of Edelweiss Financial Services – An Investment & Financial Services Company

by | Case Studies | 0 comments

In the previous article, we had already discussed the extensive SWOT analysis of the most used platform for asking questions and discussing topics, Quora. Now, In this article, we will go through the detailed SWOT analysis of Edelweiss Financial Services.

Edelweiss Financial Services is an Indian investment and financial services group based in Mumbai. It provides a range of financial services including brokerage services to life insurance and general insurance. They also provide investment guides to their clients.

Another factor that has helped Edelweiss Financial Services become the juggernaut it is today is its marketing tactics. Marketing is evolving as the world moves online, and if you want to stay up to date, check out our Free MasterClass on Digital Marketing 101 taught by Karan Shah, the CEO and Founder of IIDE.

Do you want to know how Edelweiss Financial Services was able to achieve such success in the banking industry? We shall study the SWOT analysis of Edelweiss Financial Services and discover the solution in this blog. But first, let’s study more about Edelweiss Financial Services as a firm, its foundation, products, financial situation, and competitors.

Digital-Marketing-MasterClass

About Edelweiss Financial Services

SWOT Analysis of Edelweiss Financial Services - edelweiss

One of India’s leading financial services conglomerates – Edelweiss financial services was founded in 1995 by Rashesh Shah and Venkat Ramaswamy. When it started it worked on mergers & acquisitions, providing advisory and investment banking services. But now it also offers equity broking, portfolio management, and wholesale financing services to individuals and corporations.

Edelweiss financial services is a super simple web platform that is perfect for investors who don’t trade actively but yet want a simplified interface to invest in equity, mutual funds, and other asset classes. Edelweiss people as we can say members of Edelweiss are a people-oriented platform. Edelweiss Group has partnerships with foreign companies in areas like insurance.

The company has a diversified client base that includes corporations, institutions and individuals. Edelweiss Financial Services has a sizeable presence in the large retail segment through its businesses such as Life Insurance, Housing Finance, Mutual Fund and Retail Financial Markets including Stock Broking. The company has 475 offices in 200+ locations across the world. It has a client base of 12 Lakh and is headquartered in Mumbai, Maharashtra.

Quick Stats on Edelweiss Financial Services
Founder Rashesh Shah & Venkat Ramaswamy
Year Founded 1995
Origin Mumbai, Maharashtra
No. of Employees 11,000+
Company Type Public
Market Cap Rs 5,781.19 Crore (2022)
Annual Revenue Rs 1,366 Million (2019)
Net Income/ Profit Rs 253.91 Crore (2020)

 

Products & Services by Edelweiss Financial Services

Here are some products and services Edelweiss Financial Services has to offer: 

  • General insurance
  • Life insurance
  • Mortgage loans
  • Investment banking
  • Investment management
  • Wealth management
  • Asset management
  • Mutual fund


Competitors of Edelweiss Financial Services
 

  • Goldman Sachs
  • Morgan Stanley
  • First Eagle
  • ICICI Bank


Now since we learned about the bank, let us have a look at the SWOT Analysis of Edelweiss Financial Services.


SWOT Analysis of Edelweiss Financial Services

SWOT analysis of Edelweiss Financial Services is an examination of the company’s strengths, weaknesses, opportunities, and threats. This allows the organisation to understand its market position, as well as what areas need to be addressed and where it can shine. It also aids the corporation in strategizing its business framework and elements affecting its growth.

To better understand the SWOT analysis of Edelweiss Financial Services, refer to the infographics below:

SWOT Analysis of Edelweiss Financial Services - SWOT Infographics of Edelweiss Financial Services

Below is a step-by-step detailed guide to help you with the SWOT analysis of Edelweiss Financial Services.

Strengths of Edelweiss Financial Services

Edelweiss Financial Services, being one of the industry’s leading corporations has several advantages that enable it to prosper in the marketplace. These advantages not only assist it in retaining market share in existing areas but also in expanding into new ones.

  • Faster Claim Settlement: Claim settlement Ratio of Edelweiss Financial Services is 83.44%. The claim settlement process of Edelweiss  Financial Services is very simple.
  • Branch & Advisor Network: Edelweiss Financial Services has 51723 insurance advisors. Edelweiss financial services have 121 branches and are present in 90 cities. Edelweiss is giving a good commission to its advisors for promoting their products.
  • Brand Ambassador: Brand Ambassador of Edelweiss Financial Services is Saina Nehwal through which the company gets significant brand recognition. Edelweiss Financial Services is also the insurer of the Indian Olympics team.
  • Awards and Recognition: Edelweiss Financial Services had won various awards like Best Life Insurer Award, also won an innovation award for wealth Ultima.
  • Service Quality: Quality of Services and Schemes is the key to Edelweiss Financial Services’ success. Edelweiss Financial Services has a customer-centric approach. The highest governance standards enable us to deliver quality services to our customers.
  • Insurance Premium: The insurance premium of Edelweiss Financial Services is very competitive. Various types of Premium payment options are available in Edelweiss  Financial Services.
  • Robust Training: Company has state of the art infrastructure for training its 11000+ employees and advisors. Edelweiss Financial Services is giving special emphasis on the training of employees and advisors because they are the one who represents the face of the company.
  • Acquisitions & Mergers: Edelweiss Financial Services is known for various acquisitions and mergers since its inception including the acquisition of Anagram Capital in 2011, Forefront in 2015 and one of the biggest acquisitions of JP Morgan AMC India in 2016.


Weaknesses of Edelweiss Financial Services

A company’s weaknesses keep it from realising its greatest potential. To assist the company to excel in all areas, one should assess the weaknesses and seek to improve them. 

  • Cash Flow Problems: There is a lack of proper monetary planning at Edelweiss Financial Services in regards to cash flows, leading to certain situations where there isn’t suitable cash flow as needed leading to unnecessary unplanned borrowing.
  • Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas Edelweiss Financial Services needs to invest more funds in technology to coordinate the processes across the board. Currently, the investment in technology is not on par with the vision of the company.
  • Depend on India & Southeast Asia: Edelweiss Financial Services’ global presence is not up to the mark. The bank is dependent more on India & South Asian regions. Also, Edelweiss Financial Services lags behind the top Southeast Asian financial institutions in terms of several branches. 
  • Customer Service: Improper customer service, as well as a lack of solving customer queries, can cause a negative image of the brand. This can either be through mouth publicity or by any other means.
  • Insurance Consultant: Less command over Insurance Consultants. Before selling the policies some advisors do not provide accurate details about the policies.


Opportunities for Edelweiss Financial Services

Opportunities are external variables that work in the company’s favour, and the company can take advantage of them to grow.

  • Multiple Benefits: Customers are also attracted by unit-linked insurance policies because of the multiple benefits of insurance + investment.   Edelweiss Financial Services will take this opportunity aggressively and has designed ULIPS for everyone.
  • Increasing Population: India’s population is increasing fast, and the insurable population is still too high and not adequately covered the business in the Indian market thus enjoying tremendous opportunities.
  • Partnership with Banks for Bancassurance: Edelweiss Financial Services can launch new insurance partnerships with banks for selling its policies.
  • Global Opportunities: A major opportunity for financial service players in the Indian market is the global financial service market, it is inarguably that the global market is worth billions of dollars. Edelweiss Financial Services is mainly focused on the Indian market, so it needs to increase its reach outside the Indian market as well making it gain more customers.
  • Interest Rate: Lower interest rates than compared to previous years provides an opportunity for Edelweiss Financial Services to undergo expansion projects that are financed with loans at a cheaper interest rate.


Threats to Edelweiss Financial Services

Threats are external elements that may have an impact on the bank. To avoid inflicting damage to the company, these concerns should be addressed as quickly as feasible. The threats to Edelweiss Financial Services are as follows:

  • Global Competitors: If Edelweiss Financial Services wants to expand its business around the world, they have to be careful of what policies they make or how they provide its services in the foreign market or how they market themselves, where already existing local banks are what the people trust in. 
  • Increased Marketing Efforts: Due to the rise of digital marketing, there is an increasing number of promotional messages are being sent by competitors. It clutters up the space, which leads to losing out on customers. Edelweiss Financial Services is well versed and trying to adopt a variety of the latest digital marketing skills to get ahead of the competition. You must also check out these skills to achieve the same.
  • Uncertain Conditions: The dynamic market environment makes it difficult not only for financial institutes but for every company to be vigilant and to take precautions before any crisis occurs. One other example of an uncertain condition is the Covid pandemic which made most businesses go on a complete shutdown and only visioners were and can take advantage of such situations.
  • Financial Risks: Because the company operates in several countries, it is subjected to currency fluctuations, which are exacerbated by the world’s increasingly volatile political climate in a variety of industries.
  • Cyber Security: It’s been one of the major risk factors in the financial sector. It is a must for financial systems to have the ability to withstand this cyber-attack by increasing IT  monitoring and control.
  •  


Now that we have come to the end of this thorough SWOT Analysis of Edelweiss Financial Services. Let’s see the summation of this article in the conclusion.

Digital-Marketing-MasterClass

To Conclude

Edelweiss Financial Services is a well-known financial services firm with a global reach. The SWOT analysis of  Edelweiss Financial Services revealed that the firm is strongly reliant on its consumers and has great brand recognition and trust. It has a strong sustainable foundation and has a presence in all of the areas it services, but profits and losses have been variable in recent years.

With rising competition in a saturated industry like finance, corporations are left to fight it out by improving their marketing efforts to win over their customers. Being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, where it is of vital significance. If you want to learn more and improve your skills, take a look at our 3 Months Advanced Digital Marketing course where you can learn everything about digital marketing in-depth just like this case study. 

We hope this blog on the SWOT Analysis of Edelweiss Financial Services has given you a good insight into the company’s strengths, weaknesses, opportunities, and threats. You can also read our comprehensive study on the SWOT Analysis of JP Morgan Chase.

If you enjoy in-depth company research just like the SWOT analysis of Edelweiss Financial Services, 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 Edelweiss Financial Services 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

0 Comments

Submit a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.