SWOT Analysis of Durex give emphasis on strength, weakness, opportunities and threats. Strength and weakness are the internal factors opportunities and threats are external factors.
SWOT Analysis is a validated framework that enables a company such as Cadbury to evaluate its business performance against competitors and the industry.
Durex is known for its condoms and lubricating products, or to use the more clinical term we can say, “Sexual well being” products. Durex is a recognised brand due to its popular commercials that ranged from outright controversial to funny rib tickling.
Lets discuss the SWOT analysis of Durex.
Strengths in the SWOT Analysis of Durex – Durex SWOT Analysis
- Industry experience: Durex was established in the year 1915 by London Rubber Company based in London, UK. Durex is known for Durability , Reliability & Excellence. Durex business was sold to Reckitt Benckiser in July 2010. The brand has emerged as a market leader. Durex’s leadership and is currently generating 1 billion units per year in 17 factories worldwide.
- Financially strong: Reckitt Benckiser is the 3rd largest cleaning & consumer health care goods corporation in the world (on the basis of revenue) and is a profitable company employing 40,000 workers worldwide. In addition, with its current capital, Reckitt Benckiser directs the company to make it a bigger company of condoms than ever worldwide.Operating Income of Reckitt Benckiser is 1.954 billion Euro, with a net income of 2.772 billion Euro.
- Product portfolio: The product portfolio of Durex is based on three main components / characteristics of sex life: Pleasure Focused, Comfort Based & Oriented and Concentrated on Fun. There are sub-brands for particular need & expectations in all these above categories. Durex is described as higher quality, more imaginative & more enjoyable.
- Brand awareness: People have been made to wisely select good quality condoms by generating awareness through various media such as TV advertisements, print media, radio , magazines & NGOs.
- Market Leader: Durex is available in 140 countries across the world & has a market share of 22 percent. Durex holds a good market share and is the market leader in Condoms and Lubricating products.
- Distribution: Durex has a large number of dealers, backed by a strong distribution network that ensures that its goods are readily accessible to a large number of consumers in a timely way. Durex is available across different outlets such as pharmacies, grocery stores, convenience stores / gas stations, mega stores such as Wal-Mart, Pan Shops, vending machines, health clinics & e-commerce sites.
- Dealer Community: Durex has a good partnership with its dealers which not only supplies them but also focuses on promoting the products and training of the company.
- Automation: has enabled more effective resource utilization and cost reduction from various stages of production. It also enables its goods to be consistent in quality, and offers the flexibility to scale up and scale down production as per market demand.
- Entering new markets: Creative teams from Durex have helped it to come up with new products and reach new markets. In the past it was successful, in most of the initiatives it took in new markets.
- Social Media: Durex has a strong social media presence with over millions of followers on the three most prominent social networking platforms : Facebook , Twitter and Instagram. It has a high degree of customer engagement with low customer response time on those channels.
- Website: Durex has a well-functioning and engaging website that attracts a huge amount of traffic and sales on the internet.
- Product Portfolio: Durex has a broad selection of products where it sells products in a wide variety of categories. It has a range of exclusive product deals which competitors don’t have.
- Relationships: Durex develops strategic partnerships with its manufacturers , distributors, retailers and other interested parties. This helps it to use them in the future if need be.
Weaknesses in the SWOT Analysis of Durex – Durex SWOT Analysis
- Ethical issues: advertising / promoting the brand on television and not the commodity because of regulatory regulations due to which durex does not position itself in certain markets. Various laws are also used, such as:
- Condom advertising must focus ONLY on the prevention of diseases,
- DO NOT discuss abortion,
- Casual sex must not be condoned,
- You don’t have to make comparative arguments,
- These factors are restricting the company’s growth.
- Over dependence: the main business of Durex is condoms and 95 percent of its revenue comes from the business of condoms & acceptability is poor for other alternatives such as oral contraceptives, dams & IUDs that may influence their company in the future.
- Large attempts are being made to encourage sexual wellbeing, which can help competitors: while Durex is the worldwide market leader, the attempts & money put in by the company is not fully capitalised because any attempt to build awareness results in higher overall industry sales and comparatively lower Durex sales.
- In immediate circumstances of high stress, the product is always bought, the brand becomes less relevant.
Opportunities in the SWOT Analysis of Durex – Durex SWOT Analysis
- Growing awareness: The use rate and overall demand are growing with individuals becoming more and more aware of the adverse effects & STD’s.
- Technology innovation makes business more profitable: rapidly evolving technology makes production more effective, less expensive; it is possible to put more effort on distribution.
- Maturing diaspora-Even in developing countries , people are maturing. And these individuals agree that sex plays an important part in life and that keeping things locked up is not useful. This mindset increases the overall market potential of products for sexual well-being.
Threats in the SWOT Analysis of Durex – Durex SWOT Analysis
- Low brand loyalty: The local brand business faces extreme problems resulting in low brand loyalty due to the environment & availability. The key game is the availability & condoms of the retailers pushing the individual co.’s.
- Differentiation is a challenge: it is difficult for the organisation to differentiate their products from others because they can not easily express meaning because of the limitations imposed by the government. Around the same time, in product design, condoms are constrained when it comes to creativity. Differentiating from various brands is also a challenge.
- Other products / alternatives available on the market: Because of the alternatives available on the market, such as oral contraceptives, IUDs, there is a significant danger of a decline in revenue in the condom industry.
- Government Norms for advertising and manufacturing are the major threat to the companies.
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