Descriptive SWOT Analysis of Escorts – One Of The Largest Multinational Conglomerate

Updated on: Nov 26, 2021
SWOT Analysis of Escorts - Featured Image

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The last time we did the detailed SWOT analysis of Ashok Leyland – The 2nd Highest Manufacturer of Commercial Vehicles in India, in this blog, we will do a detailed SWOT analysis of Escorts.

Founded by Har Prasad Nanda, Escorts Limited is one of the largest Indian multinational cartels which operates in the sector of railway equipment, construction machinery, and agricultural machinery. They’ve been operating since 1944. In the year 1951, Escorts Ltd. entered India and established India’s first Agri machinery farm in Delhi. 

Another facet that made Escorts a globally recognized firm is its digital marketing strategies. Many multinational companies and firms are shifting towards digital means of marketing as the world is shifting to online. If you’re also interested to know how it works, then check out our Free MasterClass on Digital Marketing 101 by our one and only Founder and CEO of IIDE, Mr Karan Shah.

If you want to know how Escorts Ltd. became a globally recognized brand and made its market presence in this vast field of giant machinery production, then you’re at the right place. In this blog, we’re going to get all our answers by decoding their SWOT analysis and competitor analysis.

Digital Marketing Academic Challenge 2024 - DMAC

About Escorts

SWOT Analysis of Escorts - Escorts Logo & Founder Har Prasad Nanda

(Escorts Logo & Founder Har Prasad Nanda, Source: Marketing Mind)

From the early 1960s to 2005, Escorts were one of the leading motorcycle producers. Escorts motorcycle division used to produce motorcycles under the brand name Rajdoot. They started making Yamaha motorcycles in India. 

Escorts used to produce many trendy motorcycles in the early 19’s. Rajdoot 350 and Yamaha RX 100 were the two of them. 

In the late 1990s, Escorts decided to quit their motorcycle business because they wanted to concentrate more on tractors and other machinery, so they sold their motorcycle manufacturing unit of Faridabad to Yamaha.

Quick Stats on Escorts
Founder Har Prasad Nanda
Year Founded 1944
Origin Jammu
No. of Employees 10,000+
Company Type Public
Market Cap Rs 24,943.05 Crore (2021)
Annual Revenue Rs 7,014 Crore (2021)
Net Income/ Profit Rs 871 Crore (2021)


Products of Escorts

SWOT Analysis of Escorts - Image of India’s First Autonomous Tractor launched by Escorts Ltd

(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.

SWOT Analysis of Escorts - SWOT Infographics of Escorts

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. 

Bonus Tip: As you can understand from the 2nd bulletin that having a lack of digital presence may cause the brand to stand behind its competitors. So, if you want your future brand or business to stand ahead of your competitors then you must learn various digital marketing skills from IIDE 13+ short term courses in digital marketing. Additionally, learning digital marketing skills provide some great future job opportunities. 

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

Digital Marketing Academic Challenge 2024 - DMAC

To Conclude

Escorts is one of the largest machinery production industries with a significant global presence throughout many countries. Many other companies work in collaboration with Escorts which makes Escorts a more strong brand. 

In the SWOT analysis of Escorts, we observed that Escorts has a strong brand recognition but its competitors are one step ahead as compared to Escorts. This company is heavily reliant but suffers from the newcomers in the same space. Their better R&D efforts are creating problems for it.

With the increasing competition in the automotive market, companies are left out with no options instead of winning over their customers with better marketing tactics. In this era where digital marketing is of the utmost importance, being well familiar with this field is a must for marketing enthusiasts. If you are interested in learning more about digital marketing and want to upskill then don’t hesitate to check out our IIDE’s 3 Month Advanced Online Digital Marketing Course.  

We hope this blog on the SWOT analysis of Escorts 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 Escorts, check out our IIDE Knowledge portal for more fascinating case studies.

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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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