Extensive SWOT Analysis of Universal Pictures – An American Film Production & Distribution Company

Products & Services by Universal Pictures

• Motion Pictures
• Music
• Film & Movies

Competitors of Universal Pictures

• Eros International Plc
• Warner Bros
• Paramount Pictures Corporation
• 20th Century Fox
• Picturehouse Cinemas Ltd

SWOT Analysis of Universal Pictures

SWOT Analysis is a useful technique for developing business strategies for both new and current businesses. This simplified methodology is used to assess a company’s competitive standing. SWOT analysis of Universal Pictures can help the organization develop effective and efficient business strategies.

Below is an explicit guide to the SWOT analysis of Universal Pictures.

Strengths of Universal Pictures

A company’s different capabilities that allow and give the advantage to capture more markets and make profits are called strengths. The following are the strength of Universal Pictures:

• International Market: Universal Pictures is a global film and television production company. One of the strengths of Universal Pictures is that it has an international market. Because of its international presence, it makes it easier for the other Universal Pictures to grow their business.
• Strong Cash Flow: As Universal Pictures is a multinational company. It has a huge international presence so they have a huge cash flow. Their revenue is in the billions. They have a good amount of profit. Due to the strong cash flow, they have sufficient resources and so that they can expand their business.
• Strong Distribution of Network: As a successful international company, they have many companies that are a huge market for the divisions. They have a strong network of distribution that helps the company Universal Pictures.
• Good Returns on Capital Expenditure: Universal Pictures has a successful track record and builds reliable trust among international consumers. They also have a successful record of merging and acquisition of big firms.

Weaknesses of Universal Pictures 

The area where the brand or company needs an improvement or there is a chance to improve and make it big and help the company to grow faster by finding out the incapabilities and weak points are referred to as weaknesses. Following are some of the weaknesses of Universal Pictures:

• Changing Trends: As an international film and television production company, they have to change according to the local market. they have to tackle the care of local consumer behaviour.
• Organization Structure: Universal Pictures is compatible with the current business model and so that it has some limits with the expansion of the segments. 
• Age Group: Their target group is mostly adults, the age category between 18-30 years. The viewers of overreliance on Universal Pictures entertainment are down by 6%. Because they are over-reliant on reality shows.

Opportunities for Universal Pictures

Opportunities means the aspects of the ground where brands can have the avenue that surrounds the environment to grow and make more profit or returns. Following are some of the opportunities for Universal Pictures:

• New Market: There is a great opportunity for Universal Pictures as there is the availability of new markets opening up. The world is going under globalization and many governments are adopting new technologies. Due to the government agreement as there is free trade that gives new opportunities to Universal Pictures. 
• Growing Economy: One of the great opportunities for Universal Pictures is the growing economy. There is a rising economy that brings the international film and television production company Universal Pictures with new customers. They can gain new customers with a good strategy. They have captured three separate businesses as a result they have a huge broadcast in countries like India. 
• International Growth: As a multinational film and television production company, Universal Pictures is constantly looking for a new market to grow internationally. They have a huge stake in India and Latin America. 
• Consolidation: Over the years they have established many companies such as Universal Pictures television and home shopping network. For the growing business, they have to arrange funds they need for support for the operations and shareholders friendly initiatives and the company mainly depends upon acquisitions and merging.

Threats to Universal Pictures

Threats referred to the factor in the environment of the business that put a hurdle to the brand to grow. It slows down the growth of the business. Following are some of the threats for Universal Pictures:

• Strong Competition: One of the biggest threats of the international film and television production company, Universal Pictures is the strong competitor. One of the biggest competitors is 20th Century Fo. 20th Century Fox has huge popularity and is the biggest movie production platform. 
• Small Production Houses: One of the biggest threats to the oldest film and television production company is the evolving small film production houses on OTT platforms. Due to current situations, many users are preferring watching movies on OTT platforms over going to the cinema.
• Currency Fluctuations: As an international film and television production company, Universal Pictures has to consider the fluctuations in the currency of different countries.
• Changes in the Policies: They have an international market, if the government changes its policies they have to change it according to the respective country’s lawsuit.

With this, we have reached the end of the SWOT Analysis of Universal Pictures. This analysis helps the company to know where it stands in the market and understand its weaknesses and create proper strategies to improve in the future.