Last time we discussed the SWOT analysis of one of the reputed telecommunication companies, Telstra. This time we will be going to know more about the SWOT analysis of Sheela Foam.
Sheela Foam is the best, good quality, and leading manufacturer of mattresses in the Indian market under its flagship brand ‘Sleepwell’. It has a countrywide presence in manufacturing PU Foam with a global marketing perspective and an impeccable track record, since 1971. The Group is committed to a one-point programme of bringing comfort, convenience and luxury to enhance the lifestyle of modern people. They share more than 23% of the organised mattress market.
Another aspect that made Sheela Foam the leading PU foam manufacturer in the Indian market is its marketing strategy. We all know that because of this covid all businesses are going online. At this time everyone knows the importance and the impacts of Digital Marketing. To know more about the changing scenario of marketing, join our Free MasterClass on Digital Marketing 101 by the CEO and founder of IIDE, Karan Shah.
Do you want to know how Sheela Foam became successful? In this blog, we will get to learn about the SWOT analysis of Sheela Foam. Before proceeding further let us just know more about Sheela Foam as a company.
About Sheela Foam,
Sheela Foam is an Indian company which was founded in 1971 the founder of Sheela Foam is Sheela Gautam. It has 11 manufacturing facilities in India all of its facilities are utilized for manufacturing home comfort products five of these also manufacture PU Foam three are located in Greater Noida, Talwada and Hyderabad and are ISO: 9001 certified.
Sheela Foam is the maker of the Sleepwell brand of mattresses. The Sleepwell brand was introduced in 1994. They also make other foam-based home comforts products that only target Indian retail consumers or technical grades of polyurethane foam (PU Foam).
Sleepwell offered high-quality “coordinated” bed sets which comprise coordinated bedsheets, pillows, blankets, dohars, comforters, and the Disney-themed range of bed sets for kids. Sleepwell introduces India’s 1st range of coordinated sets. The winning brands of Sheela Group include Sleepwell, Feather Foam and Lamiflex.
|No. of Employees||1,958+|
|Market Cap||Rs 17,159.35 Crore (2022)|
|Annual Revenue||Rs 1,741.29 Crore (2021)|
|Net Income/ Profit||Rs 181.15 Crore (2021)|
Product of Sheela Foam
- Comforters/Duvets Sofa-cum-Beds
- Lamination Foam
- Reticulated Foam
- UV Stable Foam
- Sound Absorption Foam
- Anti-Static Foam
Competitors of Sheela Foam
- Marvel Decor
- Priti International
So as we got to know about the business of Sheela Foam, now we will discuss the SWOT analysis of Sheela Foam.
SWOT Analysis of Sheela Foam
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like BCE (Sheela Foam Canada Enterprises) to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Sheela Foam.
To better understand the SWOT analysis of Sheela Foam, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of Sheela Foam.
Strengths of Sheela Foam
Sheela Foam has numerous strengths that help it to thrive in the marketplace. Some of the strengths of Sheela Foam are
- Foaming Operations: Their manufacturing units are equipped with Hennecke QFM machines and other advanced machines producing advanced foam cutting, peeling, profiling and foam compressing.
- Dedicated Team: Their dedicated team of 2000+ members of foamers work relentlessly to produce high-quality foam under stringent quality measures giving Sheela Foam a competitive edge and a large number of satisfied customers.
- Research & Technology: The company frequently introduces technologically differentiated products under their Sleepwell brand of mattresses. The team of engineers and scientists strive continuously to discover and create new knowledge to strengthen their status as technology leaders.
- Partnership & Joint Ventures: Sheela group has a joint venture with Woodbridge Group, Canada under the name Sheela Woodbridge Urethanes Pvt. Ltd. The group offers innovative moulded PU foam technologies and foaming products to fulfil specific needs of the automotive and commercial vehicle industry in India.
- Innovative Products: Sheela Foam is a leader in the PU Foam industry which in itself is one of its biggest strengths of Sheela Foam. Sheela Group produces a wide range of foaming products that are innovative and technologically advanced that stand for a perfect blend of comfort and support. The company caters to various industrial applications e.g automotive industries, sound industry, garment & shoe industry etc.
- Customer Satisfaction: Sheela Foam has been able to achieve high customer satisfaction among current customers and strong brand equity among potential customers due to its affordable to luxury bedding options with no compromise in quality.
- Manufacturing Units: The company understands the need for quality products and faster and better serviceability to the consumer which is why Sheela Foam has established 12 manufacturing units in all important locations of India to cater for trends and ever-changing consumer needs.
- Network & International Operations: The company has a nationwide network of over 100 distributors & 5000 dealers and export relations with 25 countries. Their products are exported to all major continents like the Middle East, Asia, Europe, Australia, and North and South America.
Weaknesses of Sheela Foam
Some of the weaknesses of Sheela Foam that they can work upon are
- Profitability: The gain quantitative relation and web contribution percentage of the company are below the trade average.
- Product Vary: There are gaps within the product range sold-out by the corporate. This lack of alternatives will offer new competitors a grip on the market.
- Poor Technological Investments: Sheela Foam needs to put more money into technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company.
- Reliance on Indian Market for Major Revenue: As Sheela Foam has its main headquarters in India, it is providing the services more efficiently and gets major revenue from India, and some parts of Asian regions. It is mostly dependent on the Indian market and hence lacks revenue worldwide.
- Low International Presence: Sheela Foam currently operates in only a few international markets like the United States other than India. It should consider operating in other countries to expand its business and create strong brand recognition and awareness in the market.
Opportunities for Sheela Foam
Opportunities are potential areas of focus for a company to improve results, increase sales, and, ultimately, profit. Some of the opportunities for Sheela Foam are
- Technological Advancements: The new technology provides an opportunity for Sheela Foam to practice a differentiated pricing strategy in the new market. It enables the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
- Social Media: Over the years the number of active users on social media channels has increased and with this Sheela Foam can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.
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- Opening of New Markets: The adoption of new technology standards and government free trade agreements has provided Sheela Foam with an opportunity to enter a new emerging market.
- Overseas Expansion: Sheela Foam has its presence only in some areas of the United States, by initiating to cover the whole of the United States and other parts of neighbouring countries, Sheela Foam can gradually build up its stake in the market.
- New Products: Sheela Foam should try to enter new markets by expanding its product portfolio. Currently, Sheela Foam is only dealing in the manufacturing and selling of bedding, sofa and comfort accessories, by exploring other home items and essential accessories it can launch its complete new range of product categories.
Threats to Sheela Foam
Threats are environmental factors that can be harmful to a company’s growth. The following are some of Sheela Foam’s threats:
- Local Manufacturers: In countries like India consumers prefer to buy bedding and accessories from local retailers due to their pocket-friendly nature. This is the area where brands like Sheela Foam are facing tough competition from local players.
- Counterfeit Products: As Sheela Foam deals in selling bedding and accessories, imitation of counterfeit and low-quality products under the name of Sheela Foam by fake product sellers can badly affect the name of Sheela Foam.
- Transportation Cost: Sheela Foam products like beds, mattresses, sofas, accessories and other foaming products are heavy and big which requires big trucks and containers to ship them to the end consumer. Increasing transportation costs and fuel prices are negatively affecting the profitability of brands like Sheela Foam.
- Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like Sheela Foam because it extends service internationally while its suppliers are local.
- Return & Damage: Sheela Foam brand Sleepwell return policy after delivering the final product can cause an increase in return of damaged beds and mattresses which can abruptly increase the expenses of Sheela Foam.
This ends our complete SWOT analysis of Sheela Foam. Let us conclude our learning below.
Sheela Foam is a well-reputed company that is a trusted one among the customers in India. In the SWOT analysis of Sheela Foam, we learnt that it has reached the markets of its nation but is still facing the problem of marketing its products internationally due to fewer funds and inefficient financial planning.
With increasing competition in such markets, companies need to do better digital marketing efforts. In today’s world, people need to know more about the marketing aspects used to boost the company’s growth. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.
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