SWOT Analysis of Amul

Amul is an Indian dairy brand originating from the state of Gujrat. It has a huge role to play in India’s White revolution, which resulted in India becoming the world’s largest producer of Milk. Amul started just in India but because of its growth, it has now expanded to almost 60 countries in the world. The product portfolio includes milk, cheese, butter, ice-cream etc.

SWOT Analysis of a company is done to realize the strengths, weaknesses, opportunities and threats of the company.

Doing the SWOT Analysis of Amul, we can see:

Strengths

1. Amul has a strong growth as its turnover for previous year increased by almost 18% and growth revenue by 67% making it the world’s thirteenth largest dairy organization. (Business Standard, 2016)

2.  With Amul’s products being popular and being in the market for a while now, it has developed its brand name and their customers are very loyal to the company.

3. Although Amul’s distribution network is wide and dispersed, it has managed to maintain its quality throughout the world. The credit also goes to the fact that Amul has a very strong supply chain.

4. Their diverse and wide ranges of products are also one of its strengths.

5. The global mascot (Amul girl) used in their advertising is their icon throughout the world. (Rediff Business, 2013)

Weaknesses

1. With too many international brands in competition with Amul, it now finds difficult to control its cost of operations. And thus is facing huge competition especially in international markets.

2. Amul introduced its chocolate a while back but it has not been able to gain the acceptance that it was aiming for.

3. The shelf life for most dairy products is limited which makes the company vulnerable to losses.

4. Despite the distribution being strong, it is still not dispersed to rural areas.

5.  Amul invests very low in terms of advertising.

Opportunities

1. Since Amul has seen good growth in most of the countries, it can further expand in more countries in terms of exporting their products.

2. It can still further expand its product portfolio as the company has now developed a brand name. Investing pulses, spices, grains. (Business Standard, 2016)

3. Amul can also incorporate advertising in its operations, especially exploring into the emerging internet and social media marketing trends.

4. Explore the rural areas by working extensively on distribution.

5. Cater to the rising health conscious customers demanding low fat products.

Threats

1. The local competition in the international markets as well as emerging competition in the local market from international brands is a threat to the operations of Amul.

2. Major competition faced by Amul is in the ice-cream market with new brands emerging.

3. Fluctuating inflation rate in India can affect the market of Amul, as it directly affects the purchasing power of the customers. (Trading economics, 2017)

4. The declining economic conditions all over the world can result in losses for Amul.

5. Sometimes there can be seasonal fluctuations in the milk production, which can affect the production of all the products of Amul.

Concluding the analysis, it can be observed that Amul holds a strong position in the market, is not facing any kind of major threats and can still expand its operations by taking advantage of the opportunities.

References

amul.com. About Us – The Amul Model. Retrieved July 25, 2017, from http://www.amul.com/m/about-us
India, P. T. (2017, April 1). Amul turnover grows 18% to Rs 27,085 crore in 2016-17. Retrieved July 25, 2017, from http://www.business-standard.com/article/companies/amul-turnover-grows-18-to-rs-27-085-crore-in-2016-17-117040100659_1.html
Reporter, B. (2016, June 17). Amul is now world’s 13th largest dairy, posts 67% revenue growth in FY16. Retrieved July 25, 2017, from http://www.business-standard.com/article/companies/amul-is-now-world-s-13th-largest-dairy-posts-67-revenue-growth-in-fy16-116061700784_1.html
India Inflation Rate  2012-2017 | Data | Chart | Calendar | Forecast. Retrieved July 25, 2017, from https://tradingeconomics.com/india/inflation-cpi
Amul: Amazing story of India’s most successful brand. (2014, September 4). Retrieved July 28, 2017, from http://www.rediff.com/business/report/pix-amul-an-utterly-butterly-self-sufficient-brand/20140904.htm

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