abhishreshthaa
Abhijeet S
SWOT ANALYSIS OF HINDUSTAN LEVER LIMITED
STRENGTHS
1] DEEP ROOTS IN LOCAL CULTURE & MARKETS & GREAT UNDERSTANDING OF CONSUMER NEEDS.
2] WEALTH OF LOCAL KNOWLEDGE & INTERNATIONAL EXPERTISE HELPS IT TO BE GLOBALLY COMPETITIVE.
3] EXCEPTIONAL HIGH QUALITY STANDARD PRODUCTS.
4] NEW INNOVATIVE IDEAS & PRODUCTS.
5] HIGHILY PROFESSIONAL MANAGEMENT.
6] EXCELLENT DISTRIBUTION NETWORK & GOOD RELATIONSHIP WITH THE WHOLESALERS & RETAILERS.
7]CONTINOUS EFFORTS TO REDUCE COST & PASS ON BENEFIT TO CONSUMERS.
8] GOOD REPUTATION & GOODWILL IN THE MARKET FOR ITS PRODUCTS.
9] GOOD ADVERTISEMENTS SO AS TO MAKE THE CONSUMERS AWARE OF ITS PRODUCTS,USES & PRICE & ALSO HAVE A LASTING IMPRESSION BY CATCHY ADS.
10] EXCELLENT BRAND MAKING CAPABILITY. IT HAS 110 BRANDS OUT OF WHICH 30 ARE POWER BRANDS (IE, LEADER IN MARKET SHARE WITH HIGH GROWTH POTENTIAL)
11] ABILITY TO PROVIDE GOOD QUALITY GOODS TO MIDDLE CLASS AT REASONABLE RATES & ALSO CATER TO THE PREMUIM SEGMENT FOR THE UPPER CLASS.
12] VERY HIGH MARKET PRICE PER SHARE COMPARED TO THE FACE VALUE.
13]GOOD RETURNS BY WAY OF DIVIDEND PER SHARE EVERY YEAR.LAST YEAR 5/- RS DIVIDEND PER SHARE.
14]STEADY INCREASE IN THE RETURN ON CAPITAL EMPLOYED.
15] CONTINOUS INCREASE IN EARNING PER SHARE (EPS)
16]GOOD CASH RESERVES.
17]EXCELLENT PAST PERFORMANCES FOR A NUMBER OF YEARS.
18]ABILITY TO MANAGE DIVERSE BUSINESS
19]HAVING UNILEVER AS PARENT COMPANY GIVES IT A GLOBAL PRESENCE.
20]EXCELLENT RESEARCH & DEVELOPMENT.
21]USE OF RS-NET A WEB ENABLED CUSTOMER MANAGEMENT SYSTEM TO ESTABLISH TWO WAY CONNECTIVITY WITH STOCKIST.
22] USING INFORMATION TECHNOLOGY TO CONNECT SUPPLY CHAIN
23] EXCELLENT FINACIAL SUPPORT FROM BANKS & FINANCIAL INSTITITUIONS.
24]GOOD FINACIAL LIQUIDITY & ALSO ABILITY TO COMPLETE PROJECTS ON TIME.
25] GOOD EXPORT EARNINGS
WEAKNESS
1]DIVERSIFICATION INTO VARIOUS LINES IN WHICH IT DOES NOT HAVE MUCH KNOWLEDGE WOULD BE VERY RISKY PROPOSITION.
2] HIGH COMPETITION FROM ESTABLISHED BRANDS WHICH HAS RESULTED IN REDUCTION IN PROFIT MARGINS.
3] NON FMCG PRODUCTS ARE LOSING GROUND & THEIR MARKET SHARE & SALES HAVE BEEN DECLINING.
4]WORKING CAPITAL TURNOVER IS NEGATIVE.
5]UNALE TO MAKE A BIG IMPACT IN RURAL AREAS.
6] COMPETITION FROM ITS OWN BRANDS ( LUX, LIRIL, LIFEBUOY )
OPPORTUNITIES
1]BIG UNTAPPED MARKET AVAILABLE., ESPECIALLY THE RURAL AREAS.
2]GROWTH POTENTIAL IS HIGH FOR THE POWER BRANDS.
3]GOOD SOURCE OF REVENUE & FOREIGN EXCHANGE AVAILABLE BY WAY OF EXPORTS OF ITS PRODUCTS.
4]ITS COMPETITORS DON’T HAVE THE FIANACIAL BANKING LIKE IT SO IT CAN TAKE ADVANTAGE OF THIS.
5]DUE TO GOOD REPUTATION IT MAY EXPERIMENT & INTRODUCE NEW INNOVATIVE PRODUCTS IN THE MARKET.
6] THE FOOD,CULINARY & ICECREAM CATEGORY HAVE A LOT OF GROWTH
POTENTIAL AVAILABLE
THREATS
1] HIGH COMPETITION FROM ESTABLISHED BRANDS.(NIRMA,COLGATE,
P & G )
2] COMPETITION FROM UNBRANDED PRODUCTS.
3] COMPETITION FROM ITS OWN BRANDS.( LUX,BREEZE,LIRIL)
(PEPSODENT & CLOSE UP)
4]POOR MONSOON LEADS TO POOR GROWTH DUE TO LACK OF PURCHASING POWER BY THE RURAL AREAS.
5]NEGATIVE WORKING CAPITAL TURNOVER MAY LEAD TO SHORT TERM INSTABILITY.
6] ITS FOOD,CULINARY, ICECREAM SEGMENT & BEVERAGE SEGMENT ARE FACING REDUCTION IN SALES & HENCE INNOVATION REQUIRED TO MEET THREATS OF COMPETITIORS.
STRENGTHS
1] DEEP ROOTS IN LOCAL CULTURE & MARKETS & GREAT UNDERSTANDING OF CONSUMER NEEDS.
2] WEALTH OF LOCAL KNOWLEDGE & INTERNATIONAL EXPERTISE HELPS IT TO BE GLOBALLY COMPETITIVE.
3] EXCEPTIONAL HIGH QUALITY STANDARD PRODUCTS.
4] NEW INNOVATIVE IDEAS & PRODUCTS.
5] HIGHILY PROFESSIONAL MANAGEMENT.
6] EXCELLENT DISTRIBUTION NETWORK & GOOD RELATIONSHIP WITH THE WHOLESALERS & RETAILERS.
7]CONTINOUS EFFORTS TO REDUCE COST & PASS ON BENEFIT TO CONSUMERS.
8] GOOD REPUTATION & GOODWILL IN THE MARKET FOR ITS PRODUCTS.
9] GOOD ADVERTISEMENTS SO AS TO MAKE THE CONSUMERS AWARE OF ITS PRODUCTS,USES & PRICE & ALSO HAVE A LASTING IMPRESSION BY CATCHY ADS.
10] EXCELLENT BRAND MAKING CAPABILITY. IT HAS 110 BRANDS OUT OF WHICH 30 ARE POWER BRANDS (IE, LEADER IN MARKET SHARE WITH HIGH GROWTH POTENTIAL)
11] ABILITY TO PROVIDE GOOD QUALITY GOODS TO MIDDLE CLASS AT REASONABLE RATES & ALSO CATER TO THE PREMUIM SEGMENT FOR THE UPPER CLASS.
12] VERY HIGH MARKET PRICE PER SHARE COMPARED TO THE FACE VALUE.
13]GOOD RETURNS BY WAY OF DIVIDEND PER SHARE EVERY YEAR.LAST YEAR 5/- RS DIVIDEND PER SHARE.
14]STEADY INCREASE IN THE RETURN ON CAPITAL EMPLOYED.
15] CONTINOUS INCREASE IN EARNING PER SHARE (EPS)
16]GOOD CASH RESERVES.
17]EXCELLENT PAST PERFORMANCES FOR A NUMBER OF YEARS.
18]ABILITY TO MANAGE DIVERSE BUSINESS
19]HAVING UNILEVER AS PARENT COMPANY GIVES IT A GLOBAL PRESENCE.
20]EXCELLENT RESEARCH & DEVELOPMENT.
21]USE OF RS-NET A WEB ENABLED CUSTOMER MANAGEMENT SYSTEM TO ESTABLISH TWO WAY CONNECTIVITY WITH STOCKIST.
22] USING INFORMATION TECHNOLOGY TO CONNECT SUPPLY CHAIN
23] EXCELLENT FINACIAL SUPPORT FROM BANKS & FINANCIAL INSTITITUIONS.
24]GOOD FINACIAL LIQUIDITY & ALSO ABILITY TO COMPLETE PROJECTS ON TIME.
25] GOOD EXPORT EARNINGS
WEAKNESS
1]DIVERSIFICATION INTO VARIOUS LINES IN WHICH IT DOES NOT HAVE MUCH KNOWLEDGE WOULD BE VERY RISKY PROPOSITION.
2] HIGH COMPETITION FROM ESTABLISHED BRANDS WHICH HAS RESULTED IN REDUCTION IN PROFIT MARGINS.
3] NON FMCG PRODUCTS ARE LOSING GROUND & THEIR MARKET SHARE & SALES HAVE BEEN DECLINING.
4]WORKING CAPITAL TURNOVER IS NEGATIVE.
5]UNALE TO MAKE A BIG IMPACT IN RURAL AREAS.
6] COMPETITION FROM ITS OWN BRANDS ( LUX, LIRIL, LIFEBUOY )
OPPORTUNITIES
1]BIG UNTAPPED MARKET AVAILABLE., ESPECIALLY THE RURAL AREAS.
2]GROWTH POTENTIAL IS HIGH FOR THE POWER BRANDS.
3]GOOD SOURCE OF REVENUE & FOREIGN EXCHANGE AVAILABLE BY WAY OF EXPORTS OF ITS PRODUCTS.
4]ITS COMPETITORS DON’T HAVE THE FIANACIAL BANKING LIKE IT SO IT CAN TAKE ADVANTAGE OF THIS.
5]DUE TO GOOD REPUTATION IT MAY EXPERIMENT & INTRODUCE NEW INNOVATIVE PRODUCTS IN THE MARKET.
6] THE FOOD,CULINARY & ICECREAM CATEGORY HAVE A LOT OF GROWTH
POTENTIAL AVAILABLE
THREATS
1] HIGH COMPETITION FROM ESTABLISHED BRANDS.(NIRMA,COLGATE,
P & G )
2] COMPETITION FROM UNBRANDED PRODUCTS.
3] COMPETITION FROM ITS OWN BRANDS.( LUX,BREEZE,LIRIL)
(PEPSODENT & CLOSE UP)
4]POOR MONSOON LEADS TO POOR GROWTH DUE TO LACK OF PURCHASING POWER BY THE RURAL AREAS.
5]NEGATIVE WORKING CAPITAL TURNOVER MAY LEAD TO SHORT TERM INSTABILITY.
6] ITS FOOD,CULINARY, ICECREAM SEGMENT & BEVERAGE SEGMENT ARE FACING REDUCTION IN SALES & HENCE INNOVATION REQUIRED TO MEET THREATS OF COMPETITIORS.