Michelin SWOT Analysis

Published in Automobiles category by MBA Skool Team

Michelin is one of the leading brands in the automobiles sector. Michelin SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of Michelin:

Michelin Strengths

  1. One of the largest manufacturers of tyres with manufacturing facility in 18 countries and being sold in over 170 countries across the world.
  2. Excellent brand equity with high market share
  3. They have global presence with over 110,000 employees
  4. Strong and competent R&D with spirit of innovation
  5. They have strong financial position.
  6. They have diversified portfolio with products in almost all the segments.
  7. They offer ‘Maps and Guides’ and have an excellent service ‘Via Michelin’ that helps in planning a trip along with their 24/7 online shopping.

Above are the strengths in the SWOT Analysis of Michelin. The strengths of Michelin looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.

Michelin Weaknesses

  1. Stiff competition from existing tyre brands
  2. Not entered the emerging economies in a big way
  3. Over leveraged financial position

These were the weaknesses in the Michelin SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.

Michelin Opportunities

  1. Emerging economies as huge potential markets
  2. Building awareness about their other services
  3. Scope for improvement in logistics and distribution system

Above we covered the opportunities in Michelin SWOT Analysis. The opportunities for any brand can include prospects of future growth.

Michelin Threats

  1. Volatility in raw material prices.
  2. Increasing prices of Crude Oil.
  3. Stiff competition both from national and international companies.
  4. Government Policies w.r.t export duties, import duties, tax levied on automobile industries and economic condition of nation as it determines the sale of automobiles.
  5. Introduction of other transport facilities like metro, monorails and local trains keeping pollution hazards caused by combustion of automobile fuels.
  6. Fluctuations in exchange rates
  7. Cheaper Imports from China

The threats in the SWOT Analysis of Michelin are as mentioned above. The threats for any business can be external factors which can negatively impact its business.

Hence this concludes the Michelin SWOT analysis.

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About Michelin

The table below gives the brand overview along with its target market, segmentation, positioning & USP

Michelin Overview
Parent Company

Michelin
Category

Tyre Industry
Sector

Automobiles
Tagline/ Slogan

A better way forward
USP

To contribute to the long term progress in the field of mobility
Michelin STP
Segmentation

Automobile industry, Specialty equipments
Target Market

2-wheeler, passenger, luxury, SUVs. LT, HT, trucks. Bus and specialty equipment manufacturing companies
Positioning

Safety, reliability, strength, durability, technologically superior and innovation


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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