SWOT Analysis of Apollo Tyres focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors which influence the SWOT Analysis of Apollo Tyres.
Apollo Tyres AG is the manufacturer and marketer of tyres and tubes. Apollo Tyres operates in Asia, Europe and Africa. Apollo Tyres are located at Gurgaon & Haryana. Operating income for the business has risen over the last few years. Apollo Tyres is a leading player in the Tyre Industry.
Competitors of Apollo Tyres are :
Strength in the SWOT Analysis of Apollo Tyres – Apollo Tyres SWOT Analysis
- Strong Brand image: One of its strengths is the versatility of Apollo ‘s Brand. The company’s manufacturing units are based in India, the Netherlands, and South Africa, and its tyres are distributed in Asia , Africa, and Europe under different brand names. The presence in the portfolio of various strong brands gives the company a reputation which gives the company a competitive advantage.
- Good financial performance: Apollo’s net revenues increased in the last 5 years at a CAGR of 2 percent and its income increased in the same period at a CAGR of 34 percent. Good financial performance boosts the interest of shareholders and also provides space for future expansion plans and thus also increases market share.
- Research and Development emphasis: Apollo invests extensively in programs related to research and development ( R&D). Improvement of main performance parameters including endurance, grip, and mileage is Apollo’s primary objective. It helps the company to invest in new and creative goods. Good research and development provide superior technological capabilities.
- Market share: Apollo has a strong market share in India, as can be seen from the graph. This is the second largest holder of market share in LCV’s and the largest holder of market share in medium and large commercial vessels.
- Marketing and Promotions: Apollo Tyres is marketing its products very aggressively. Apollo Tyres is using Modern Methods of Promotion like Google Ads, Facebook ads, Instagram Ads, and Online Viral Marketing.
Weakness in the SWOT Analysis of Apollo Tyres – Apollo Tyres SWOT Analysis
- Labour Strikes and Lockouts: The company has faced numerous labour Strikes and lockout issues at its plants in Durban, Vadodara, etc. in the recent past. It affects the manufacturing capacity of the company, and therefore also affects the company’s financials.
- Strong reliance on the Indian market: while the company has grown internationally but the majority of the company’s revenue is based on the Indian market (about 65.2 percent of its revenue was from India in the 2015 fiscal year). This leaves the company vulnerable to changes in India’s economic and political climate. To reduce the risks of relying heavily on one market, the company needs to increase its sales in other markets.
Opportunities in Apollo Tyres Ltd ‘s SWOT Analytics:
- Growing Four Wheeler Industry in India: Four Wheeler Industry in India is consistently growing and has shown 4 percent CAGR growth from the 2015-18 period. Over the same period, Indian truck manufacturing also saw a 7 per cent CAGR rise. Growth means rising prospects on both the 4-wheeler and commercial vehicle segments.
- Expansion in the Two Wheeler segment: In view of its existing product range, Apollo aims to occupy 85 per cent of the industry. With the growth of the 2-wheeler industry, Apollo is able to increase its position in this industry.
- International Expansion: The organization has been in an expansion phase in countries such as Lebanon, Qatar and Jordan for the last 3 years. The company will aim to do the same and venture into new markets.
Threats in the SWOT Analysis of Apollo Tyres – Apollo Tyres SWOT Analysis
- Heavy competition: Competition in the tire industry is very strong with competitors such as MRF Tyres, JK Tire and Goodyear in particular in India. Fierce competition can have an effect on sales and expansion plans for the company.
- Cheaper Tyres in China: Imported Chinese tire goods are cheaper and thus pose a tough market competition. Imports by the Chinese will adversely affect the profitability of Apollo.
- Volatility in rubber production: Indian rubber production is volatile and generally lower than the demand produced, and therefore the price of rubber fluctuates in light of demand. It has an impact on the firm’s pricing policy.
- Government Policies: Change in Government policies can adverse effect on the company.
- Competitors Pricing and Discount offers can be a major threat to the company.
If you like This Article Please Like our Facebook Page PROJECTS4MBA
Cite This Work
Referencing Style to cite this article: