Previously we looked at the SWOT Analysis of Tata Motors, a leading global automobile manufacturing company. In this case study, we will analyse the SWOT Analysis of Jeep.
Jeep the oldest four-wheel drive mass-production vehicles are now known as SUVs. The Jeep became the primary light 4-wheel-drive vehicle of the United States and the World.
Jeep cars have solid axles and an open top. That is why the Wrangler has been called the Jeep model that is as central to the brand’s identity as the 911 is to Porsche.
Before starting with the SWOT analysis of Jeep, we have also done a detailed analysis of the marketing strategy of Porsche, have a look at that article to know more about Porsche’s marketing strategies which Jeep company also follows.
Jeep has profited from its marketing activities as a result of its market position. Marketing evolves in response to changing societal preferences. Attend our Free MasterClass on Digital Marketing, taught by IIDE’s Founder and CEO, Karan Shah, if you want to stay current with today’s effective marketing.
Let’s start with Jeep’ history, founding, finances, services, and market competitors in this SWOT Analysis of Jeep.
(The Legacy of Jeep, Source: Jeep)
Jeep is an automobile company that was started in the United States with the tagline of “Jeep. There’s Only One.”, now owned by European conglomerate Stellaris. Chrysler acquired the Jeep brand which was previously owned by AMC (American Motors Corporation).
The Jeep company has been headquartered in Toledo, Ohio, ever since Willys-Overland launched production of the first CJ or Civilian Jeep branded models there in 1945. The Jeep Wrangler series had remained in production since 1986.
|No. of Employees||5,600+|
|Market Cap||$ 23.6 Billion (2021)|
|Annual Revenue||$ 65.1 Billion (2021)|
|Net Income/ Profit||$ 2.2 Trillion (2019)|
Products of Jeep
(Image of The First Jeep 1940’s Willys Quad & 2021 Wrangler Willys, Source: IIDE)
- Jeep Gladiator
- Jeep Wrangler
- Jeep Cherokee & Grand Cherokee
- Jeep Compass
- Jeep Renegade
- Jeep Wrangler JK
Competitors of Jeep
- International Harvester Scout
- Ford Bronco
- Chevrolet K5 Blazer
- Dodge Ramcharger
- Suzuki Samurai
- Daihatsu Rocky
- Isuzu Vehicross
- Toyota Land Cruiser 40
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 Jeep.
SWOT Analysis of Jeep
SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis is a famous method that is used to evaluate a company’s position and helps them in developing strategic planning. SWOT Analysis of Jeep helps the company in finding out internal and external factors and also helps them in looking for prospects for the company.
So let us first start by looking at the strengths of Jeep from the SWOT analysis of Jeep.
Strengths of Jeep
An organization’s capabilities that give it an advantage in increasing and capturing its market share, attracting more customers, and maximizing profits are referred to as its strengths. Following are Jeep’s strengths:
- Online Presence: The company has a strong online presence on different social networking sites. This gives the advantage of brand awareness and brand reputation. Efficient social media management enhances customer relations and develops strong relations with them.
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- Best Quality: The company believes in providing the best it can offer and hence never compromises on the quality of its products which adds to another strength of the company.
- Good Suppliers Relations: The company has good relations with their suppliers and hence they have the best parts and provide the best performance. Good Suppliers also help the organization to get raw materials at a lower cost and so the company can increase its margins and profits.
- Well-Managed IT System: Jeep has a well-established and well-managed IT system that ensures efficiency in their internal as well as external working.
- Good Product Portfolio: Jeep has a large product portfolio where it provides products in a large range of categories. It also has a good number of products that other competitors lack in providing them.
Weaknesses of Jeep
Whenever a company is recognized with its strengths, there are always going to be some weaknesses as well. Let’s check them out.
- Exorbitant Pricing Model: Jeep cars are really expensive and overrated. The targeted market is very limited and hence only the people who love the car are the ones who end up buying it with their high pricing model.
- Same Designing & Strategy: Company has not done any R&D over years and has been going ahead with the same design which does not excite many people. Also, many features and functions of the Jeep car come with the same design and so there has not been any advancement in their designs.
- Low Market Penetration: The company has very low market penetration and it has affected its market share as well. It is very low as compared to other competitors in the industry and this is the main reason why the company is lagging.
- Research and Development: Now there is a need for the company to look for a better R& D department as it has not been performing up to the mark and this is one of the reasons the company is not gaining popularity.
- Financial Planning and Growth: Currently financial planning of the company is not done efficiently which is hindering the growth of the company. The current asset ratio and liquid asset ratios suggest that the Jeep company can use its cash more efficiently than what it is doing now.
Opportunities for Jeep
Factors also have an impact known as opportunities and threats for the business. Let’s discuss some opportunities:
- Enter Growing Market: They have the perfect opportunity of entering a growing market to expand their penetration and increase their market share. With the upcoming new generation, the company is gaining some popularity and with correct methods, they can drastically grow their market.
- Better Designs: The company should boost its R&D department to enhance its product design and efficiency. With better designs and good structure, they can gain a lot of attention in the market.
- Rapid Changes in the Environment: Now is the time of the Electronic Vehicles (EV) market. It can become a great opportunity for Jeep to drive home this advantage and gain market share in the new product category of the Electronic Vehicles (EV) segment.
- New Market: Several new niche markets have opened up in the past few years and are growing at a very fast pace. Jeep can enter these markets and can sell its products to gain first movers advantage.
- Skilled Professional: With skilled labour, the company can get better production and growth from workers. So delving into the workers properly and giving them extensive knowledge can prove to be helpful for the company in the long run.
Threats to Jeep
When there are opportunities, there are also threats to the company. Let’s learn more about them and see some upcoming threats to the company from various other industries.
- Consumer Preferences: With the change in consumer tastes and preferences it could become a threat to the existing players. The EV market has been emerging rapidly and this could affect the supply chain model of Jeep. If the companies don’t change and upgrade their products then they could lose potential market share.
- Competitor’s Performance: New technologies developed and undertaken by the competitors can become a threat to the company. This could affect the market of Jeep for a short period and even for the long-term future.
- The rise in Fuel Prices: Companies that are providing them with the raw material have increased transportation costs due to the rise in prices of fuel and thus the prices have increased. This change has increased the input costs for Jeep.
- Marketing Campaigns by Competitors: Increased promotions by competitors have been a threat for Jeep. Customers are motivated by effective campaigns from various competitors. Hence this has reduced the effect of marketing campaigns and promotions by Jeep.
- New Entrants in the Market: Nowadays several new companies are entering the market and have also gained a lot of market share. They are gaining the trust of consumers through innovations brought by them. So, if Jeep does not make its move then it can lose its customers to these new entrants.
This ends our comprehensive SWOT analysis of Jeep. Let us conclude our learning below.
Jeep is still growing its market in the automobile manufacturing sector. In the SWOT analysis of Jeep, we have observed that the company is very reliable and trustworthy but lacks in the brand portfolio, designing, and some R&D departments.
With the better up-gradation in some key areas and improvements in the company’s performance, Jeep can surely survive in this competitive market. Jeep needs to go for digital marketing methods to gain the attention of new people and the younger generation as they will be the prospective buyers for them.
In today’s world, every business has its presence online. With increasing competition, it is very important to make your mark and defend yourself in the market. So, being well versed in 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 Jeep has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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