SWOT Analysis of Reliance
Reliance is an Indian multinational company. Dhirubhai Ambani founded the company in 1973, currently headquartered in Mumbai, India. He started the company with a strong vision. Today, we will overview Reliance Industries using a specific SWOT Analysis of Reliance. This method discusses its strengths, weaknesses, opportunities, and threats. Let’s dig in,
Overview:
In the Indian industry, Reliance Industries is one of the most reputable names with diversified businesses like natural gas, energy, retail, petrochemicals, telecom, and media. Right now, the company has a strong presence in more than 125 countries. In the telecom sector, they have Jio, which offers excellent 4G services across the country. It is giving fierce competition to others in 4G and data connectivity.
According to Fortune’s 500 best companies of the world in 2020, it has secured a prominent position due to its profitability and market share. They have been entering to the green energy sector by the end of 2025. For this reason, they are planning to invest 75 billion dollars. It is one of the biggest employers in the world, with over 236,564 employees. Despite India’s biggest company, it has some pros and cons. Let’s see these factors by using the SWOT tool.
Company Name: Reliance Industries Limited
Founders: Dhirubhai Ambani
Founded: May 8, 1973
Headquarters: Mumbai, India
CEO: Mukesh Ambani (Jul 31, 2002-)
Type: Public
Sector: Conglomerate
Tagline: Growth is Life
Unique Selling Proposition: To become one of India’s most popular and highly profitable companies.
Customers: Upper Class, Middle class, and Lower class of people
Target Consumers: Customers who want quality goods and services ranging from oil to telecom and even retail.
Revenue: 4.833 trillion INR (64b dollars, 2021)
Net Income: 53,223 crore (7.1b dollars, 2021)
Strengths of Reliance | SWOT Analysis of Reliance
- Low Debt:
During the period of 2019 to 2021, the world was facing its darkest time, but strong funding from Intel, Google and Facebook helped the company pay back its debt. It was a great move and considered as the strength of the company.
- Powerful Promoter:
The face of Mukesh Ambani is one of the company’s biggest strengths. Today, we know Tesla due to Elon Musk and this is the case with Mukesh Ambani. He has taken many risky moves and bold decisions to grow the business.
- Strong Brand Recognition:
Reliance Industries is the 1st Indian brand that featured in the Fortune 500 Global. It is making amazing progress in every business and sector. FYI, it has secured 400 million subscribers within five years.
- Significant Market Cap:
In different business segments, RIL has a strong market cap. It is a king in the telecom sector with unique offerings of Jio. Moreover, it is also a king in the retail business.
- Manufacturing Plants:
In Jamnagar, Reliance owns the largest refinery. It consists of over 10000 acres of land. So, they have manufacturing advantages to manufacture products on a big scale.
Weaknesses of Reliance | SWOT Analysis of Reliance
- Legal Campaigns:
Big companies like Reliance are highly vulnerable to adverse reactions and legal actions. The company gets a lot of criticism from environmentalists and social activists due to its oil and gas business.
- Political Affiliation:
The recent protest from farmers has affected the company in many ways. They target the company due to farm bill 2020. Such political situations and threats can weaken the business performance.
- Decay in Productions:
Tapti Fields and KG-D6 project are two primary sources of the company’s gas. It is declining because of several operational and natural problems. This thing could weaken the supply chain and production system of the company.
- Limited Reach:
Reliance Industries is highly dependent on the Indian market in terms of sales. It does not have a strong global presence. If anything happens with the Indian economy, then the company will be on the verge of destruction. They can expand their businesses, such as Jio to achieve growth.
Opportunities for Reliance | SWOT Analysis of Reliance
- New Acquisitions:
The company should acquire new startups and companies to expand its growth and reach. Recently, they have made a wonderful acquisition of Justdial. They are integrating it with JioMart to boost its retail business.
- Partnerships and Collaborations:
They can make collaborations or partnerships with oil and gas companies. Moreover, Reliance has the potential to invest in technology companies to increase their market share. They can expand their business in this way.
- EV Industry:
Due to their presence in the petrochemical sector, they have the ability to produce chemicals. Such chemicals are used in batteries and the company can earn big revenue from this sector.
- Enhancing Jio:
Jio is a big name in the telecom sector and they can increase their offerings to attract more customers. However, they must minimize glitches to provide seamless service across the country.
- CBM as Unconventional Gas:
The company already has two CBM blocks, a natural gas, obtained from coal seams. They can invest in this sector to grow the business.
- More Offerings in Jio:
Undoubtedly, Jio is the most popular name in the telecom business. They have a big growth opportunity in this sector. They should introduce new offers and deals in order to get the attention of new users.
Threats to Reliance | SWOT Analysis of Reliance
- Government Regulations:
Government policies regarding the environment are getting stiffer day by day, making it hard to run a business. So, this thing poses the biggest threat to the company.
- Stiff Competition:
Indian market is very difficult due to the presence of different giants. Airtel is one of the biggest competitors of Jio in the telecom sector. Adani Group is another competitor of Reliance in the petrochemical business. The immense growth of Tata Group is also a big threat for the company. The company should take some aggressive marketing decisions to stay in the competition.
- Climate Change:
Climate change is one of the major threats for every company in the world. The company should invest in Green initiatives to get the attention of environmentalists. They should follow environmental rules in order to avoid any inconvenience.
Suggestions | SWOT Analysis of Reliance
- The company should invest in the technology sector because of the strong business in Jio. It will help the company to generate more revenues.
- They should take green initiatives on an urgent basis in order to satisfy environmentalists and social activists.
- They must avoid any political involvement and activities. This is not good for the growth and reputation of the company.
STP and USP of Reliance Industries | SWOT Analysis of Reliance
- Segment:
Individuals, companies, or countries looking to fulfill their energy requirements.
- Target Customers:
Individuals and companies looking for energy and gasoline diesel for homes and vehicles.
- Positioning:
Best quality oil products from Reliance.
Competitors of Reliance Industries:
- Bharat Petroleum Corporation Limited (BPCL)
- Oil and Natural Gas Corporation
- Bharti Airtel Limited
- Adani Group
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