SWOT Analysis of Escorts: Large Multinational Conglomerate

Products of Escorts

(Image of India’s First Autonomous Tractor launched by Escorts Ltd, Source: carandbike)

• Tractors
• Automotive Components
• Railway Equipment
• Construction and Material Handling Equipment

Competitors of Escorts 

• JBM Groups
• L.G. Balakrishnan & bros Ltd.
• Eicher
• Mahindra
• Ashok Leyland

Now that we got to know about the company’s function and their vast business globally, now let’s dig into the SWOT analysis of Escorts.

SWOT Analysis of Escorts

SWOT universally stands for Strengths, Weaknesses, Opportunities, and Threats. It is a tried-and-true management prototype that allows Escorts to compare itself with other giants’ performance and their marketing strategies. It is a great tool to examine where a company falls short, where it is leading in the market and obviously to get to know about the tactics to outstrip others.

So let us first start by looking at the strengths of Escorts from the SWOT analysis of Escorts.

Strengths of Escorts 

• A Strong Brand: Escorts Ltd. has had its presence for more than 70+ years in the field of mass manufacturing machinery and the production of Motorbikes and Tractors.
• Cost Structure: Being a brand that produces every sort of big machinery, Escorts maintained their price customer friendly which many times made people choose this brand.
• Financial Position: Escorts has a strong financial position and being a public company, it helps them to raise funds that support them to diversify their business in more sectors.
• Skilled Labor Force: Throughout years passing by, Escorts heavily invested in training their employees, which resulted in several talented employees.

Weaknesses of Escorts

• Market Research: Escorts still rely on the data which are years old. Through the going time, customers have evolved and they are shifting to new designs and advanced motors. This was the reason why their Yamaha lineup of motorbikes didn’t make a long run in customers’ minds.
• Less Creative in Advertising: Escorts haven’t yet put that tremendous amount of effort into advertising its products as done by its competitor Eicher in the field of tractors. Because of this lack of digital presence, they may lose many opportunities to attract customers. 

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Opportunities for Escorts

• Market Capacity: India is an under-developed country, through time the construction and transportation will be at a peak in India and this is a great opportunity for Escorts to come forward and introduce advanced machinery and tractors.
• Internet: The number of people who use the Internet is growing rapidly all over the world. Escorts has a great opportunity to expand its business by making an e-commerce presence and to make customers familiar with their products.
• Introducing New Units: Electric vehicles are in the trend nowadays for the manufacturers. Escorts has the opportunity to introduce its new unit in the field of EV’s and to give tough competition to its rivalries.

Threats to Escorts

• Highly Competitive Market: The competition in the industry is increasing by the passing days which is forcing industries to drop their prices. If they don’t adjust to the price changes then they may lose some of their market shares.
• New Entrants: A bunch of new players have introduced themselves in the market and are gaining market share of existing companies and are stealing their customers.
• Political Uncertainty: Political instability in the country is a hindrance to business. It can cause an organization with more extra costs and their performance in the market will suffer.

This ends our fascinating SWOT analysis of Escorts. let us conclude our learning below