The Reliance industry is the most reputed and highly profitable industry in the world. It was established by Dhirubhai Ambani in 1966. Its headquarters is in Mumbai. This company deals in wide variety of products like energy, petrochemicals, natural gas, retail, entertainment, telecommunications and mass media. The Company is now headed by Mukesh Ambani, the son of Dhirubhai Ambani. The company has a turnover of more than 90 billion per annum. The main motto of this company is “Growth Is Life.” This company has won many awards like.
- India’s Best Employers Among Nation Builders 2022
- Interbrand’s ‘Best Indian Brands 2023’ in this the company gained 2nd position
- India’s Most Sustainable Companies” for the year 2022
- Best Indian Brands 2023’
The company in 2020 is listed as a top 100 company in the world in fortune 500. Even the lay man in India knows about this company. It has such a strong network. One of the latest news about this company is that by the year 2025, this company is going to enter the Green Energy Business.
What is swot analysis?
Swot analysis is a tool by which the company analyzes its strength, weakness, opportunity, and threat.
Swot Analysis of reliance Industries Limited
Strength
- Brand Awareness– The major strength of reliance companies is even villagers are aware of their products. Especially the Jio mobile that has been launched by this company keeping in interest the weaker section of society.
- Market share– This company occupies a considerable amount of market share in different sectors, like in telecom, petrol, and retail sector.
- Change in technology– Reliance company upgrades its technology from time to time. It also makes changes in products like upgrading of mobile phones, and bringing in mobile 4 G speed.
- Spread in a variety of product lines-Reliance has opened many shops relating to Consumer Electronics, Grocery, Jewelries, and Jio-Mart.
- Social responsibility– Reliance company creates value from waste material.
- Meet Global demand– The company tries to meet the demand globally on time.
- Look after the welfare of employees – The company looks after the needs of their employees and sees that they get the best atmosphere to work in the company.
- Brand reputation– This company has a very good brand reputation.
Weakness
- Heavy dependence on global prices of oil– Reliance petrochemical and refining businesses heavily depends on the global prices of oil. It Keeps on fluctuating as the prices vary internationally.
- Changes in Economy– The company has to change the price of the product along with change in taxation policy. Rise in prices of raw material leads to decrease in demand of the product.
Opportunity
- Expansion in the global market– The company should try to expand globally by collaborating with their local companies. Thereby expanding their network.
- Digital Promotion– The company should aggressively advertise on social media platforms and TV, thus leading to heavy increase in sales.
- JIO broadband – Jio broad bands are facing issues thereby making the customers switch internet connections to other companies. Thus, the company should as early as possible focus on improving their broadband connection.
- Reliance retail shops– These days reliance retail shops have shown great growth for reliance companies. Thereby the company should also try to focus on it and try to open more stores in villages, in urban areas and internationally.
Threat
- Competitors– The major threat to the reliance company is from its competitors, Like
- Adani company- This company has a very wide product portfolio like logistics, infrastructure, and agribusiness
- Amazon India
- Vodafone
- Bharat petroleum Corporation Limited
- Tata Group
- Emerging new technology– These days new technology is coming in the market day by day. Thus, if the company is not able to upgrade itself, then it will lose the market share.
- Global changes– The changes in foreign currency and economic policy leads to profit and downfall of the company.
Thus, swot analysis is very helpful and necessary for every company. It helps the company to make marketing strategy and planning. It helps the company to eradicate the weakness of the company. Reliance company is trying to overcome its weakness and threat laid down in swot analysis by taking necessary measures, like opening more retail shops. Even though there are some weaknesses of the company, yet the company is enjoying strong goodwill in the market. It has a very strong cash flow and uses that cash to expand their business. Forbes Magazine has rated Reliance Industry on 17th position in the international market in the year 2000. Thus, in the years to come reliance companies will become the number one company in telecom and petroleum products throughout the world.
