Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Essar Steel Ltd analyses the brand by its strengths, weaknesses, opportunities & threats. In Essar Steel Ltd SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Essar Steel Ltd to benchmark its business & performance as compared to the competitors. Essar Steel Ltd is one of the leading brands in the industrial products and chemicals sector.
The article below lists the Essar Steel Ltd SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Essar Steel Ltd SWOT Analysis:
For Essar Steel Ltd, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
Essar Steel Ltd Strengths
The strengths of Essar Steel Ltd looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Essar Steel Ltd :
1. Global producer of steel with a footprint covering India, Canada, USA, Middle East and Asia
2. India’s largest exporter of flat steel products
3. Natural gas & power consumption in processes have reduced over the years
4. In spite of the slowdown in the steel markets it has retained adequate liquidity within the Company to meet its operational requirements and has withstood the downturn
5. Strong brand backing of parent company
6. Good advertising and market visibility through TVCs and print ads
Essar Steel Ltd Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Essar Steel Ltd SWOT Analysis:
1. Dependence on RBI monetary policy easing & tightening for controlling inflation affects operations
2. High dependence on raw materials & forex markets is a concern
Essar Steel Ltd Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Essar Steel Ltd SWOT Analysis:
1. Improvement in physical property and chemistry to produce quality products
2. Provide more ﬁnances for expansion, strengthening of marketing network through Service Centres, Hypermarts etc. and strategic investments
3. Use mathematical Model to predict the temperature evolution during cooling of Hot steel products to improve product quality
Essar Steel Ltd Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Essar Steel Ltd are as mentioned:
1. Financial crisis in Europe will continue to affect demand world wide
2. Rules & Regulations of government of each country in which Essar steel has presence
Essar Steel Ltd Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Essar Steel Ltd:
Sectors such as automotive, white goods, construction, engineering and shipbuilding
Company having value added segments in the steel industry, a diversiﬁed distribution network & integrated nature of operations
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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