Previously we discussed the SWOT analysis of Japan’s top-selling luxury car company, Lexus. Today, we will go through the SWOT Analysis of Land Rover in more detail.
Land Rover is the largest British luxury manufacturer of cars, starting in 1885 as Rover Company. Land Rover goes through a lot of processes while providing the strongest luxury SUVs. In 1947, the first Land Rover was designed by Maurice Wilks as the Chief Designer at Rover Company and tested the prototype of the car.
Land Rover has been in the automotive industry for so long because its marketing strategy works very well and all the efforts show improvement in their products. Nowadays, the world uses digital marketing to maintain its business online presence. Interested to learn more about digital marketing, check out our Digital Marketing 101 Free MasterClass By Founder of IIDE and CEO, Karan Shah.
Want to learn how Land Rover is successful until now? We will discover the SWOT Analysis of Land Rover, also learn more about products, competitors, customers and technology.
About Land Rover
Land Rover is a British luxury manufacturer of cars, began as Rover Company in 1885 manufacturing bicycles in Warwickshire, England. After a few ownership changes throughout its existence, Land Rover and Jaguar Car were finally owned by Tata Motors, an Indian giant automotive manufacturer in 2008 and became Jaguar Land Rover Limited in 2013.
Land Rover produces any type of SUVs Car such as Range Rover Family, Electric Plug-In Hybrid, Discover Family, Defender Family, Special Vehicle Operations and Land Rover Classic. Land Rover decided to use life cycle assessment for their future products research and operations with the product developments.
Land Rover is famous for manufacturing unrivalled capabilities cars and advancement of technology that is suitable for adventures everywhere. In 1948, the first Land Rover production was Series I, which originally appeared at the Amsterdam Motor Show and the full production continued in Solihull.
| Founder | Maurice Wilks |
|---|---|
| Year Founded | 1978 |
| Origin | England |
| No. of Employees | 39,787 |
| Company Type | Public |
| Market Cap | $ 1.573 Trillion of Tata (2021) |
| Annual Revenue | £ 19.73 Billion (2020) |
| Net Income/ Profit | £ 422 Million (2020) |
Products of Land Rover
Land Rover has many types of SUVs with the unique functions:
- Special Vehicle Operations
- Range Rover Family
- Plug-In Hybrid
- Discover Family
- Defender Family
Competitors of Land Rover
Land Rover competes with many automotive luxury and SUVs manufacturers. These are the close competitors of Land Rover:
- Mercedes AMG
- Volvo Cars
- Aston Martin
- AUDI INDIA
- Maserati USA
We already discovered the company, let’s check on the SWOT Analysis of Land Rover.
SWOT Analysis of Land Rover
SWOT Analysis of Land Rover can show how a well-established company uses its opportunities to ensure its growth. It can show how the company takes advantage of its strengths to use the opportunities while working on its weaknesses. SWOT Analysis of Land Rover will also reveal its expansion plans.
To better understand the SWOT analysis of Land Rover, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT analysis of Land Rover.
Strengths of Land Rover
Strengths indicate how the business performs and what differentiates it from the competitors, such as loyal customers, stable financial, and innovative technology. Here’s have Land Rover’s Strengths:
- Convenience and Comfort Seat Interior: The seat interior of the Range Rover has provided versatility with comfortable seats, options for four-zone climate control and cabin air Ionisation with nanoe technology enhances the air quality in the car by eliminating allergies, viruses, airborne bacteria, and odours.
- All-Terrain Innovation and Light Weight: Range Rover has the unrivalled capability of all-terrain with Terrain Response 2, Range Rover can move in seven modes of response as Rock Crawl, Sand, Eco, Dynamic, Grass/Gravel/Snow, Comfort, Mud and Ruts. Terrain Response 2 has a function to adjust the transmission, suspension, and traction settings for maximum drivability in practically any situation.
- Sustainable Materials: Land Rover aims to use sustainable materials such as leather, natural rubber, wood, and cotton. They are still researching new types of natural fibres to reduce car weight and vehicle components.
- Land Rover Classic: Land Rover is committed to maintaining and repairing its automotive legacy for future generations. Land Rover Classic also has genuine parts for worldwide Land Rover owners. Bringing history to life by carefully repairing limited edition classic Land Rovers and the famous Land Rover Series I and original Range Rovers two-door.
Weaknesses of Land Rover
Weaknesses prevent the organisation from operating the same way for so long and help them improve their performance. These are the weaknesses of Land Rover:
- Reliability Issue: Land Rover Discovery 3 & 4 models have a reliability issue for Air suspension problems, dreaded crank-shaft seizures and electronic park brake failures. Jaguar Land Rover has a priority to fix the issues about reliability and quality using the Reimagine Plan.
- Compete with Other SUVs Brands: Land Rover has competition with other brands that have similar specifications, engine, technology, design, materials quality, different prices, exterior and interior features of the SUVs such as Audi, Volvo and BMW.
- High-cost Maintenance to Fix: Land Rover is the top 10 most expensive cars to maintain and the maintenance cost will be after 5 to 6 years of the production year. The maintenance costs for the average Range Rover is from $600 to over $4,000.
- The Dissatisfaction of Customers: Land Rover has a negative impact from the dissatisfaction of the customer and they are losing huge opportunities to get more sales. If Land Rover doesn’t have issues with the dissatisfaction of the customers, they might get more than 100,000 healthy sales.
Opportunities for Land Rover
Opportunities are external situations that might provide a business with a competitive benefit such as new market, gain market share and sales.
- Expanding to the Global Market: Jaguar Land Rover opened a new factory in Itatiaia, Brazil and has had a presence for 25 years in the Brazilian Market. It’s a part of Jaguar Land Rover global development strategy and increases its global existence. Range Rover Evoque and Land Rover Discovery Sport, Land Rover is the market leader for the midsize premium SUV sector in Brazil that accounted for 30% of sales.
- Improve Car Quality: Land Rover can improve the car quality by putting more investment into manufacturing and product development. Land Rover is in the process of making some improvements for better quality using design. JLR’s vehicle design process, which included renovating and standardising technology, as well as upgrading the design of components and integration.
- Technology Advancement: With advanced technology and innovation, Land Rover can have the potential to compete with another brand. Land Rover plans to develop future lightweight automobiles using aerospace technologies and test them across North America with over 400,000km.
- Online Fans: Land Rover has a lot of fans that post and share about the Land Rover car on the website drivetribe.com and the Facebook group Malaysian Land Rover community and Range Rover fans.
Threats of Land Rover
Threats are circumstances that will have the potential to be dangerous to an organisation. These are threats of Land Rover:
- Covid-19 Uncertainties: Jaguar Land Rover reduces 2,000 people in their global workforce and faces uncertainty from the Covid-19. Jaguar Land Rover (JLR) sold 425,974 automobiles worldwide in 2020, a 23.6% decrease from the previous year.
- Intense Competition: Land Rover has intense competition with BMW, Mercedes and other brands that offer large SUVs with advanced hybrid technology and strong materials. The intense competition of Land Rover with other brands is also based on the size of the SUVs and the reputation of the company.
- Bad Customer Buying Experience: Customers who buy Land Rover cars have a bad customer service experience. Customers don’t get any response from the customer service department after sending emails and phone calls. Customers also face a lot of problems with their cars after the warranty ends.
- Competitors’ New Technology: Almost every year, new technology for the automotive industry comes out and Land Rover should be ready to launch new technology in their future car. Recently, Jaguar Land Rover plans to use sustainable materials for seat leather in its products and it’s good for the environment. By 2039, Jaguar Land Rover wants to achieve net-zero carbon neutrality across its operations, vehicles, and whole supply chain.
This ends our thorough SWOT analysis of Land Rover. Let us conclude our learning below.
To Conclude
Land Rover is a brand that has been in the automotive industry for more than half a century. In the SWOT analysis of Land Rover, we noticed that Land Rover provides a great function for the SUVs and uses an environmental material. In negative aspects, Land Rover is dealing with reliability issues of the car, bad ratings for the customer buying experience and the competition with other SUVs brands.
As the Land Rover deals with a lot of issues, it seems like the issue happened because of their lack of marketing efforts. Marketing is important in any industry and it will help the company work well. The USP for Land Rover is they have a special vehicle operations car and an all-terrain function.
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