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Reliance Swot Analysis

Reliance swot

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0% found this document useful (0 votes)
381 views23 pages

Reliance Swot Analysis

Reliance swot

Uploaded by

ytthirdeyegaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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a PU rea SWOT PEELE) Submitted by - Abhishek Sharma FSrevaniiercte codecs Mens trelC ntents of the Report Part 1: Industry overview of Reliance Part 2: Company profile of Reliance Part 3: Company vision and mission Part 4: Key products and services Part 5: Concept of SWOT analysis Part 6: SWOT of Reliance part 7: SWOT matrix of Reliance Part 8: Conclusion Part 9: suggestion Reliance industries in one of the biggest compnay of india. The company hold its business in textile, petroleum , energy , refining , petrochemicals, telecommunication , retail etc . 1- Textile industry - Reliance came into existence with textile business and is still a big player in textile market with competition like Suele , Arvind and Vardhman textile. Textile industry contributes around 2 percent in Indian GDP . Textile industry valued at 150 billion US dollar and it is estimated to cross 200 billion dollar in 2023, Introduction Industry overview of reliance Petroleum Industry - Reliance also owns a big share in petroleum industry where it owns a big share in this market also. The petroleum industry of India is growing at at average of 3 percent a year and India is the 3rd largest consumer of Diesel in world. It is also estimated that usage of natural gases will increase three times by 2030. Reliance has competition with giants like ONGC , Bharat Petroleum and Indian Oil. Telecommunication Industry- India ranks as the world’s second largest market in terms of total internet users. The total number of internet subscribers increased to 757.61 million in January 2021. The total wireless or mobile telephone subscriber base increased to 1,163.41 ETON UNE Uer eon ESAT OM BP ccsn see UN TET On Res second-largest telecommunications market. The total subscriber base in the country stood at 1,183.49 million, as of January 2021. Reliance Jio is in competition with giants like Airtel and Vodafone India. Introduction Industry overview of reliance Media Sector - India has 5th largest media and entertainment market in the world. ener ceo mut ne mre cited film induserey in terms of ticket sold films made. India also has Second largest TV market in the world, Media sector has 1.7 trillion dollar of market valuation and is expected to grow to 2 trillion dollars in 3 years. Reliance has major competition like Caer ee aca een ene cm Retail market - Retail market is also a big market in India. Total valuation of the PE oe OnE Seen ome ERR Remon nrc Ca cOm benae ene Coad oe CGS Resa ceo RC eee CR eon taccs Company profile of Reliance Reliance is headquartered in Mumbai. It was started by Dhirubhai Ambani in 1966 as a textile based company which main business was making yarn. Reliance is now biggest producer of yarn and textile in the world. In 30 years of opening company made its way in fortune 500 list . Today Reliance is the most profitable company in India and is leading profit maker. Total operating income of the Reliance is reported at US 11 billion dollars with net income of 75 billion dollars. Company has Total assets of 190 billion and total equity of 97 billion. ATED FOR Nene ie Rn ne Cee oa Per R We gol Te Meng er ee ere ogee centric approach and their employees motivating catalysts in the Se eos Vision To lead the industry while generating value to the ei Me nee in setting ethical standard eee ees atod WETS Toya) SCR et ua ag tvs) eM Mao ates eee Cae PNM Org gle Eee ree marc ee a Co RON) Ne RO ae oe ACs learning and carrear development. Key GAPCO feria i Products deli - and Services Gon Bry ICE areolar Lava cele LU (aicy Eales a eRe textile, petroleum , energy refining , petrochemicals, telecommunication , retail etc 7 = Network [:} ES) 61 ir | Key products and services Of reliance Refining and marketing - Refining and marketing have three subsets which are refining , GAPCO , petroleum retail. Where through refining company extracts propylene , naphtha , gasoline , kerosene etc. In petroleum retail company owns subsets like Reliance gas, reliance petroleum retail , AutoLPG etc. Gulf Africa Petroleum Corporation (GAPCO) a company registered in Mauritius, is a subsidiary of Reliance Industries Limited, one of the largest conglomerate and listed company in India engaged, inter alia, in exploration and distribution of oil and gas, petroleum refining and marketing. Retail network - Retail network of reliance has brands like Reliance retail , Reliance Fresh , RelianceMarket, Reliance digital etc. Reliance has tapped every major retail network existing in india. Reliance fresh is selling vegetable , fruits and grocery whereas reliance digital sells major electronic products and home appliances whereas Reliance trends sells clothing and fashion products.Company also sells Jewelery with the brand Reliance jewels. aM Textile Industry RG eee ETOa ae emt a cots Ce nea aren ym EUR ciel este brands which works under reliance umbrella. Fea (eels Pdr reel aya) Reliance gives its most of the digital services under Semen h Om eed cena eee can Ro eae rare ee ars such as Jio beats, Jio drive, Jio mags , Jio security , Jio ae Media and Entertainments Reliance owns many brands under its media and entertainments business. It owns Viacom18 which deals in film entertainment business. It owns moneycontrol.com, Firstpost News18.com which gives out digital content. Company has also invested in ecommerce businesses such as HomeShop18 , bookmyshow and Ajio. Reliance owns news]18 networks , CNBC networks colors networks , etv networks too. Concept of SWOT PE eLe SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. SWOT analysis assesses internal and external factors, as well as current and future potential. SWOT analysis was first used to analyze businesses. NE Re com yO n tn nM oe OME CUR Tate RET TCO Fito ite tos rN occ ret Rov Coen Strenght of Reliance Reliance industries is one of the biggest Pemsiaco)at:4 industries in India.Company owns many mre major brands of India like Reliance gas, Network 18, Jio , Viral, LYF etc. This diverse brand portfolio helped reliance to capture | most of market share in every major etelascollte business sector .Company became the first Indian company to cross 200BN Dollar market cap. position and diverse brand 2 - Strong free flow and capital expenditure Reliance is a company with big cash inflow and revenue. Company got a average profit margin of 8 percent in last 10 years and is growing rapidly. Company is having an average of 10 percent return of equity in last 10 years 3 - Operation and business expansion advatage Reliance statrted its business with textile industry. It always focused on expanding its business . From textile reliance expanded its business to petrochemicals and refinery. reliance also expanded its business to retail , media and telecommunication. Reliance Jio and digital services Reliance Jio has turned out to be the best business expansion for the company. Jio became the strength of Reliance as it continues to be the biggest telecom company of India. Company also offers many of its digital services under brand of Jio. Major fundraiser which cleared debt Reliance got fundsof 22 billion dollars which cleared its debts. Company became debt free and is growing with big no . Weakness 1 - Getting success in only major brands Where Reliance industries has got success in major brands but it has failed to get success in minor brands. Reliance owns more than 130 brands in which only few have got the success. This is a big weakness of Reliance. 2- Less Investment in R&D Reliance industries has always seen a setback in creating new products due to their low investment in R&D. Company should invest more in its R&D to get new innovative product lineups. Weakness Production declining in exploratory blocks: RIL’s gas production from two of its major plants, KG-D6 project and Tapti Fields is decreasing due to various natural and operational challenges. A decrease in production affects supply and operational margins. Opportunity Tapping new digital market - Reliance industries has tapped in digital market very aggresively but there are many digital ventures in which it has not invested. For ex Education Industry etc. Strong 5g networks - As India's telecom sector is now dominated by two telegiants Airtel and Jio. Reliance has a very good opportunity to build 5g networks better than Airtel which can lead to increase in market share of jio. Threats Huge competition in all sectors The very strength of Reliance is its weakness also. With business diversification in every major business sector of India company faces huge competition from every giant in the business. For Ex Airtel in telecom, Indian Oil in petroleum , ZEE networks in media and entertainment etc. Less Social brand value due to low CSR Reliance faces a lot of social backlash due to its low CSR . Company has not increased its brand value in the eyes of normal Indian . Company should increase its CSR to compete with the brands like TATA which has made its goodwill by doing a good ammount of CSR. Threats Legal proceedings and litigations: RIL has been subjected to various legal proceedings and litigations in the past. Recently, RIL has had to pay a hefty penalty amount to the government. Such instances impact the reputation of the company. Seow 1 -Strong brand value and diverse brand 1 - Getting success in only major brands portfolio 2- Strong free flow and capital expenditure ' [ [ 2 - Less investment in R&D 3 - Operation and business expansion advantage 4- Reliange jio and digital services 3 - Production declining in major 5- Major fundraiser to clear debt exploratory blocks rend fies 1- Tapping new digital markets 1 - Huge competition in all sectors 2 - Strong 5G networks 2 - Less social brand value 3 - Legal proceedings and litigation Conclusion and suggestion In this SWOT analysis of Reliance we found out that reliance is at very good position in market . Company is growing with big no with increase in revenue and market share. Reliance industry has the potential to become the global brand in future. Suggestion to Reliance will be to draw a line for business diversification. Company should stick to its main business and should not over diversify. Company should also increase its CSR policy fund to make their social brand image stronger.

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