Last time we did the powerful SWOT analysis of Cairn India – One of the Largest Oil and Gas Exploration & Production Companies in India. The case study also includes the collaboration of Vedanta Resources and Cairn India towards digital transformation.
Let’s now go through the modernized SWOT analysis of Vedanta Resources.
Vedanta Resources work in India as a subsidiary firm named Hindustan Zinc Ltd and it is one of the largest mining & non-ferrous metals companies in India. Vedanta Resources company is among the top producers of major commodities which include zinc, lead, silver, iron ore, steel, aluminium, gas and oil.
The corporate goal is to create long-term shareholder value through sustainable development, research, discovery and utilisation of natural resources. This is done through a varied portfolio of huge, long-life and low-cost assets across the world.
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Before we begin further with the SWOT analysis of Vedanta Resources, let us discuss the company, what products it has to offer, its financials and its competitors.
About Vedanta Resources
(Source: Yo!Success)
Vedanta Resources is a broadly varied natural resources company, founded in 1976, Mumbai. They extract and process minerals, oil and gas, basically the natural resources and also engage more than 65,000 employees and contractors, primarily in India, Africa, Ireland and Australia.
The business model focuses mainly on growth, expansion and value creation, intending to have a positive impact on the community and to leave a legacy of pride. Their products are sold worldwide and the main headquarter of the company is in London, United Kingdom.
| Founder | Anil Agrawal |
|---|---|
| Year Founded | 1976 |
| Origin | Mumbai, India |
| No. of Employees | 20,447 (2020) |
| Company Type | Public |
| Market Cap | Rs 1,29,526 Crore (2021) |
| Annual Revenue | US $11.722 Billion (2021) |
| Net Income/ Profit | US $1476 Billion (2021) |
Products by Vedanta Resources
- Copper
- Aluminium
- Zinc
- Lead
- Gold
- Iron-ore
- Pig Iron
- Metallurgical coke
- Oil
- Gas exploration
Competitors of Vedanta Resources
- Aditya Birla Minerals Limited
- BHP Billiton Group
- Eurasian Natural Resources Corporation PLC
- Grupo México S.A.B de C.V
Now that we understand the company, let’s dig into the SWOT analysis of Vedanta Resources.
SWOT Analysis of Vedanta Resources
SWOT analysis includes strengths, weaknesses, opportunities and threats of a brand. In the SWOT analysis of Vedanta Resources, the internal factors are strengths and weaknesses, whereas the external factors are the threats and opportunities.
SWOT analysis helps the brand to understand and manage the business, also to analyze their performance as compared to the competitors and take necessary precautions when needed.
Let’s start by discussing the strengths of Vedanta Resources from the SWOT analysis of Vedanta Resources.
Strengths of Vedanta Resources
- Diversified Business: Vedanta Resources has clients all around the world and it’s one of the leading businesses in its industry.
- Customer Satisfaction: The company with its strong and dedicated customer relationship management has been able to have a high level of customer satisfaction.
- Strong Network: Vedanta has built a reliable distribution network over the years which helps it to reach the potential market.
- Strong Assets: With a worldwide network of consumers, Vedanta has their mines and have built their manufacturing units not only in India but also abroad.
- Strong Financial Position: Automation of activities, successful marketing strategies for their products, success at execution of new products and highly skilled workforce has given Vedanta Resources a strong financial position in its industry.
Weaknesses of Vedanta Resources
- Investment in Innovation: Even though investment in R&D ( Research and Development ) is above average but in terms of innovation, it’s lagging behind its competitors, which is not only affecting sales but also brand image.
- Organization Structure: It is only compatible with its current and previous business model which limits the expansion of new products and limits the growth of the company in different sectors.
- Allegations: At times name being involved in alleged illegal mining, practices have a spoiled brand name.
- Government Intervention: Government intervention in the mining business can cause operation inefficiency.
- Technology: The company needs more investments in new technologies, given the scale of expansion the company is planning in different areas to expand into. At present, the company is behind in the investment in technology.
Opportunities for Vedanta Resources
- Business to Online: Over the past few years, the company has invested a large sum of money into taking the business online, with this investment the doors to new sales channels can be opened.
(Vedanta Resources Thinking Towards Digitalization, Source: Vedanta Resources)
Did You Know? According to Vedanta Resources, the application of digital concepts, ideas, tools and technologies can cut down operation, production and maintenance costs by 10%. “Vedanta is leveraging the power of digitalization in a big way and is injecting around $10 billion investment in digital activities,” says CDO – Amitabh Mishar.
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- Expansion: An opportunity of expanding the business more, worldwide through the London headquarters.
- Community Programs: The company should start developing community programs that will not only help them to get a good brand image in nearby regions but will also help them gain potential customers.
- The Market Development: This will help them in decreasing the competitors’ advantage and work in the favour of Vedanta Resources to increase its competitiveness compared to other organizations.
- A Chance to Open New Market Segments with the Government Agreement: Adoption of new technology standards and government free trade agreement has provided Vedanta Resources to excel in new market segments.
Threats to Vedanta Resources
- Sales Depend Upon Seasons: Sales also depend on the season as the demand for profitable products is seasonal which can affect the profitability of the company even after having enough resources.
- Brand Image of Competitors: Good brand images of the competitors are one of the threats which shouldn’t be neglected by any company at any cost.
- Changes in Customer Buying Behaviour: A company needs to always focus on the needs and wants of the customer, if you ignore them the customers won’t take much time to shift to new products or services.
- Environment Regulations: As a mining company, Vedanta has to make sure to follow all environmental rules if not done so the company can go through big losses.
This ends our detailed SWOT analysis of Vedanta Resources. let us conclude our learning below.
To Conclude
In this SWOT analysis of Vedanta Resources, we came to know that the strength of the company can be explained by the fact that the company have assets that are worldwide to both scale and size; their low cost of production makes the company competitive among its competitors and the skill and experience that are present like their assets is high quality.
Some of the weaknesses are their poor brand management, not giving much importance to marketing and not paying much attention to brand image. Therefore the company must take all required efforts to work on their weaknesses. There are many opportunities for this company that will help them increase their business on a global level.
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We hope this blog on the SWOT analysis of Vedanta Resources has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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