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Detailed SWOT Analysis of Subros – A Manufacturer Of Automobile Air Conditioning Systems

by | Case Studies | 0 comments

In our previous blog, we talked about the SWOT Analysis of Enel, the 73rd largest revenue-making company in the world. This time let’s dig into the SWOT Analysis of Subros.

Subros develops and manufactures automobile air conditioning systems (AAS) and fan motor assemblies. It supplies technical knowledge to develop projects and manufacture automotive air-conditioning systems for cars and light commercial vehicles, including swash-plate type compressors, clutches, and other associated components.

One reason behind the massive success of Subros is its marketing efforts. It is proven time and time again that marketing efforts, especially digital marketing play an important factor in a company’s growth. If you are interested in learning about digital marketing – check out our Free MasterClass on Digital Marketing 101 by IIDE’s CEO and Founder, Karan Shah.

Do you want to learn about the stunning success of Subros? Well, that is exactly what today we are gonna do! In this blog, we are going to dive deep into the SWOT analysis of Subros. But before we start, let us learn a little more about the company, its overview, products, competitors, etc.

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About Subros 

SWOT Analysis of Subros - Subros Noida Office

Ramesh Suri, Lalit Suri, and Jayant Nanda founded Subros Ltd in February 1985 as Subros Pvt Ltd. In October of 1985, it became a public limited company. It develops and manufactures automobile air conditioning systems (AAS) and fan motor assemblies using technologies developed by its Japanese collaborators Denso Corp (13% share) and Suzuki Motors (13% stake). 

Denso Corporation (previously Nippon Denso) supplies technical knowledge to develop projects and manufacture automotive air-conditioning systems for cars and light commercial vehicles, including swash-plate type compressors, clutches, and other associated components.

In 1985, the company had a capacity of 15,000 AC units and was mostly an assembly operation. Today, it is India’s largest and only integrated manufacturing unit for vehicle air conditioning systems. Subros manufactures compressors, condensers, heat exchangers, and all other connecting elements needed to complete an AC loop for passenger cars, buses, trucks, refrigeration transport, off-roaders, home air conditioners, and railways, among other segments. Subros has production units in Noida, Manesar, Pune, Chennai, Nalagarh, and Karsanpura, as well as a well-equipped R&D centre and tool room in Noida.

 

Quick Stats on Subros
Founder Ramesh Suri, Lalit Suri, and Jayant Nanda
Year Founded 1985
Origin India
No. of Employees 4,000+
Company Type Public
Market Cap Rs 2,367.08 Crore (2021)
Annual Revenue Rs 1,805.96 Crore (2021)
Net Income/ Profit N/A

 

Products Of Subros

Here is a list of products the company offers: –

  • Compressors, Condensers, Heaters and Evaporators for passenger vehicles.
  • Bus AC
  • Rail AC
  • Residential AC
  • Commercial AC
  • Transport Refrigeration System
  • Truck Cabin AC System
  • Off-Roader AC


Competitors of Subros

These are some of their major competitors:

  • Olimpia
  • Mubea
  • Kumho Tire
  • Michelin North America


Now that we are familiar with how the company’s history and it’s working, let’s dive right into the SWOT Analysis of Subros.


SWOT Analysis of Subros

SWOT Analysis of Subros is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.

With the growing neck-and-neck rivalry in membership warehouses, it is critical for organizations like Subros to examine the business environment.

To better understand the SWOT analysis of Subros, refer to the infographic below:

SWOT Analysis of Subros - SWOT Infographics of Subros

Now first let’s begin with the strengths of the company from the SWOT analysis of Subros.

Strengths of Subros

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Subros:

  • First-Mover Advantage: In the increasingly saturated market. Subros Ltd market share in the Miscellaneous Capital Goods business is quickly expanding as a result of the new products.
  • New Product Mix Success: Subros Ltd offers a wide range of product mix alternatives to its customers. It enables the organisation to serve a wide range of consumers in the Miscellaneous Capital Goods industry.
  • High-Profit Margins: Even though Subros Ltd profitability is decent, it still has greater profit margins than its competitors. 
  • Brands Catering to Various Client Segments: Subros Ltd diverse product offerings have enabled the firm to penetrate several customer segments within the capital goods segment. It’s also helped the company diversify its revenue streams.
  • Talent Management: Subros Ltd and employee skill development. Subros Ltd performance in the capital goods industry is dependent on its human resources.
  • Strong Brand Recognition: Subros Ltd products have strong brand recognition. This has allowed the corporation to demand a higher price than its competitors.


Weaknesses of Subros

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Subros are

  • Employee Turnover: Subros Ltd is also concerned about high personnel turnover at the lowest levels. It may result in greater wages to retain talent within the company.
  • Decreasing Market Share: Subros Ltd market share is decreasing while revenues are increasing, indicating that the industry is growing faster than the firm. Subros Ltd must carefully study the numerous trends within the sector to determine what it has to do to promote future growth in this situation.
  • Replaceable Model: Subros Ltd business model is easily replicable by competitors in the industry. To overcome these obstacles, the company name will need to develop a platform model that will allow suppliers, vendors, and end-users to work together.
  • Limited Knowledge Base People: Subros Ltd. has a high expense of replacing existing expertise. Few people are in charge of Subros Ltd knowledge base, and replacing them will be tough under the current circumstances.
  • Low Investments in Customer-oriented Services: Subros Ltd needs to enhance its research and development spending, particularly in customer service applications if not then competitors may gain an advantage shortly. 
  • Less Effective Marketing: Niche markets and local monopolies, which corporations like Subros Ltd can profit from, are rapidly dwindling. Subros Ltd advertised customer network is becoming less and less effective.


Opportunities for Subros

Opportunities are external variables that, if taken advantage of at the correct time, can help a business expand.

  • Unorganised Players: Unorganised players in the market are finding it increasingly difficult to operate due to increased government requirements. Subros Ltd may be able to expand its customer base as a result of this.
  • Customer Migration to Higher-end Products: This is a wonderful potential for Subros Ltd, since the company has strong brand recognition in the premium market, and customers have had good experiences with Subros Ltd items in the lower segment. It might be a win-win situation for the corporation, with the potential to boost profits.
  • Technical Advancements: Rapid technical advancements are increasing industrial productivity, allowing suppliers to produce a wider range of products and services. Subros Ltd may be able to expand into new items as a result of this.
  • Lower Inflation Rate: Lower inflation rates create more market stability, allowing Subros Ltd customers to obtain credit at a lower interest rate. Subros Ltd products will be consumed more frequently as a result of this.
  • Rapid Economic Expansion: Subros Ltd will be able to expand into the US market since the US economy is improving quicker than any other developed economy. Subros Ltd already has the experience needed to compete in the competitive US market.
  • Local Collaboration: Partnerships with local firms can help Subros Ltd expand its market share in international markets. Local players have local knowledge, but Subros Ltd may bring global processes and execution knowledge to the table.


Threats to Subros

Subros also has some threats on their business from the outside. It is very important to anticipate them before one becomes a victim to them.

  • Saturation in Urban Markets & Stagnation in Rural Markets: This is an ongoing concern for Subros Ltd in its area. One of the causes is that product acceptance is slow in the rural market. Second, due to the wide distances and lack of infrastructure, serving rural clients is more expensive for Subros Ltd than serving urban ones.
  • Product Commoditization: The most significant problem for Subros Ltd and other industry competitors is the increasing commoditization of products in the capital goods business.
  • Competitors are Catching Up with Product Development: Even though Subros Ltd is the leader in product innovation in the market at the moment. International competition and local competitors are posing a serious threat.
  • Shortage of Skilled Human Resources: Due to significant employee turnover and a growing reliance on creative solutions, the company name may experience a shortage of skilled human resources shortly.
  • Changing Demographics: As the baby boomers retire, the younger generations are finding it difficult to replace their spending power. This may result in larger profitability for Subros Ltd in the near term, but worse margins in the long run as young people are less brand loyal and more willing to try new things.


This ends our detailed SWOT analysis of Subros. Let us conclude our learning below.

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To Conclude

To survive in the practical market, Subros had to pay more attention to all of the key players, because firms from all over the world are playing the best part in the market, and most of the companies are giving goods at the lowest rates and best values to the clients.

As we know, the market condition changes as time passes by, much like a test, a reference, or a trend that shifts regularly. As a result, a company must acquire the greatest technology to gain greater market share in the present and future. With the help of digital platforms and digital marketing, the company would be able to accustom to the changing trends and gain a foothold.

Being well-versed in digital marketing is a requirement for all marketing enthusiasts in today’s shifting scene, which is vital. If you want to learn more and improve your skills, check out IIDE’s 3 Month Advanced Online Digital Marketing Course.

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

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Subros in the comments section below.

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]

Aditya Shastri

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