SWOT Analysis of MRF 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 MRF Tyres.
MRF or Madras Rubber Factory is a well-known Indian tyre manufacturing firm. It soon became a multinational company and produces India’s largest number of tyres. It is based in Chennai, India and was established in 1946.
MRF also manufactures things like treads, tubes, conveyor belts, toys, and paints, along with tyres. The company also successfully established a motorsport challenge in India in the form of the MRF. Many of the company’s factories are based in South India including Puducherry, Kerala, Trichy, and several other places.
Competitors of MRF Tyres are :
Strength in the SWOT Analysis of MRF Tyres – MRF Tyres SWOT Analysis
Any brand ‘s strengths account for positive aspects which make the brand what it is today. Being a large organization, MRF has taken advantage of its success to achieve the role they are in today. And let’s see what qualities MRF carries:
- Reaching Rs 5,000 crores milestone: MRF became India’s first company to reach a point where the company’s turnover exceeded Rs 5,000 crores, being listed as the number one firm in the tyre industry.
- Building a strong network: MRF has a very large and established distribution network.
- A significant number of production units: MRF has a total number of 6 manufacturing units, which are located in southern India.
- Having a strong export market: MRF has a large and very successful position when it comes to exporting goods, which is done roughly across 65 countries.
- Having a broad portfolio: There is a full range available with MRF when it comes to the manufacture and use of various tyres, designed for different vehicles.
- Brand value: MRF is not only a very high value for the company but also has consumers’ confidence and faith.
- Variety of tyres: MRF has also taken various steps to match the tyres, which can withstand different terrain conditions
- Financial condition: MRF is in an extremely strong financial position
- The company’s diversity: MRF is widely divided into three main components, Funskool, MRF Racing and the MRF Pace Foundation
- Strong advertising reaching out: a company that advertises itself as a tyre-making company in India that is environmentally friendly in nature.
Weakness in the SWOT Analysis of MRF Tyres – MRF Tyres SWOT Analysis
- A company counter flaws for the downsides and the challenges a company faces along the way. Below are some of the shortcomings that MRF possesses, given their rather strong strengths.
- Lack of volatility: MRF still lacks a lot of volatility, for example when it comes to considering industry-based relationships, the unrest of MRF ‘s labor.
- Being in a very strong competition: MRF has a lot of market competition, which is very intense and affects MRF’s good performance somewhere, particularly after the arrival of some of the world-renowned global tyre brands
- These listed above were the shortcomings MRF possesses, despite having such strong strengths.
Opportunities in the SWOT Analysis of MRF Tyres – MRF Tyres SWOT Analysis
- Opportunities are the places where the company will have scope for improvement that will work further in the future for their image.
- Going through a rapid growth: with the growth in the automotive industry, markets are growing at a fast pace.
- Maintain good relationships: have a relatively good amount of ties with some businesses and maintain a good B2B market.
- Having a lot of diversity: possessing a vertical and horizontal form diversification.
- Growing Car Market and Demand of the car tyres can be a great opportunity for the company.
- Company can tie-up with car manufacturers to promote and use tyres of MRF.
Threats in the SWOT Analysis of MRF Tyres – MRF Tyres SWOT Analysis
Threats are something that can damage the credibility or market value of the company. Unfortunately there are some risks concerning MRF even after being one of the best in tyre companies. Those risks include:
- Strike: The company has been largely traumatized by an internal strike at MRF along with the entire automotive industry in Chennai. This severely disrupted manufacturing and production in Chennai is nearly dead.
- Raw Materials prices are constantly increasing: the prices of important raw materials for the manufacture of products such as natural rubber and crude oil are constantly rising, both nationally and globally. This can build a lot of trouble having rubber supply in the next two years as ANRPC has said.
- Cheaper product availability: Cheaper goods are available on the market imported from China as compared with MRF. While MRF has no quality at all, it has been observed that it has made 5 percent of business in the industry as a whole.
- Competition: Competition from leading tyre companies and from local market companies can be a major threat.
- Costs: The rising technology and raw material costs will also pose a potential threat.
- Changing Government laws for Rubber and Tyre companies is a major threat.
- New Entrants can be a major threat.
- Discount and attractive offers
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