Swot Analysis of Amul Company

Amul Company (the taste of India) was established by Mr. Verghese Kurian in 1946. It is the largest distributor and manufacturer of dairy products in India. This company was formed basically in Gujarat keeping in view the interest of small farmers and the people. The interest of the farmers was that they would get the fair prices of their labor and won’t get exploited by the middlemen and their consumers get the quality product. This company has become dominant in Indian market. It is holding 70-75% share in Indian market. Not only in India, the demand of this company product is increasing internationally. This company turnover has crossed Rs 80,000 crore benchmark in the financial year 2004. It is known for its quality product. This company is managed by Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF). Even during the covid time when all the company were suffering losses this one industry has raised the revenue by 39200 crores and introduced 33 new products during covid 2020. The girl that is shown on the cover of the Amul products has deeply touched the emotions of the people and captured the space in the heart.

Now before making any strategy and planning, the company first study its swot analysis.

Amul Details

What is Swot Analysis?

This word was introduced in 1960. It has four terms S stands for strength, W stands for weakness, O stands for opportunity and T stands for threat.

Thus, before doing any planning Amul company also does swot analysis of amul.

SWOT Analysis of Amul

Strength-

• Wide range of products– Amul company has a very wide range of products.  Varying from Ice cream, chocolate, Milk, Cheese and many other. Not only this it has launched flavored milk thus enhancing the taste of the milk. Its milk and ghee are highly in demand all over India. 
• Wide distribution Network– This company has a very wide distribution network all over India, even in the remote areas. It is also now trying to expand its network in international market. It delivers its dairy products to 18700 villages all over India. It also sees that these products are delivered on time so that the consumers do not have to suffer.
• Strong Brand value– The company has a very strong value, as its products are known for their quality. Not only in India, it also enjoys its brand value in international market.
• Introduction of new products– Amul company time to time improves or introduces its new product in the market.
• Trust building– The company has built strong trust between them and the famers. They ensure fair trade practices between the government, farmers, and the customers.
• Economical prices- Amul company ensures that the prices of the product are to be kept so that even the weaker section of the society can purchase their product.

Weakness-

• International Presence– Amul company presence is very limited in the international market. 
• Perception of Dairy Products– The company is known only for the dairy products like ghee, milk, cheese, if the company launches nondairy product like chocolate the people will not buy it easily.
• High Operational Cost– The company has the complex structure as it depends on the milk supply of farmer union. Thus, leading to high fluctuations in operational cost.
• Legal issue– The company has faced legal issue against Hindustan Unilever Limited, thus tarnishing its image.
• The corporate Structure– The Company structure is such that it delays in the decision making regarding any changes that is to be made in the policy or relating to marketing strategy, as the approval of decision has to undergo through many people.

Opportunity-

• Rising demand of milk– As the demand of milk is rising in the market, the company has the opportunity to increase its supply in the market.
• Enter the market Internationally– By improving and making its marketing strategy in such a way, the company can enter the international market and take hold in it.
• E commerce and digital marketing– This provides the excellent platform for the company to grow.
• Innovations– The company can expand its product range with more innovations in the product line.

Threats-

• Competitors– The major threat to the company is from it’s competitors like Mother Dairy, Danone in the international market.  Thus, the company should always introduce something new, so that be on the upper hand from its competitors.
• Preferences of the customers– The change in preferences and demand of the product can highly impact the company.

Thus, swot analysis of the company is very important. Swot Analysis of Amul helps Amul Company, to know where to make major changes. Thus, in spite of some weak points Amul company has grown in leaps and bound in recent years. The company is also trying to overcome its weakness and trying to hold a strong share in international market.