Rexel SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 12, 2020

SWOT analysis of Rexel analyses the brand by its strengths, weaknesses, opportunities & threats. In Rexel 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 Rexel to benchmark its business & performance as compared to the competitors. Rexel is one of the leading brands in the IT & Technology sector.

The article below lists the Rexel SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Rexel SWOT Analysis:

SWOT Analysis of Rexel

For Rexel, 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.

Rexel Strengths

The strengths of Rexel 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 Rexel :

1. Strong product portfolio - Rexel offers a broad range of products and services that aim to respond to all of the needs of contractors, as well as those of industrial and commercial customers
2. Strong service network for customers across all the product families
3. Strong global presence - The company operates in 35+ countries across North America, Europe, Asia-Pacific and Latin American regions, with 2,300 branches
4. Revenue structure is globally diversified which shows global penetration

5. Over 28000 employees are a part of the organisation

Rexel 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 Rexel SWOT Analysis:

1. involvement in a large number of legal litigations negatively impacts the company’s brand image
2. Rexel is highly indebted and Low availability of funds for growth opportunity due to high debt-servicing costs


Rexel 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 Rexel SWOT Analysis:

1. Growth opportunities through mergers and acquisition, Rexel acquired Munro Distributing Company, an innovative electrical products and services distributor specializing in energy efficiency solutions in the Eastern US and California
2. Expansion of equipment market - the global electrical components and equipment market is expected to grow
3. Rising focus on global sustainable energy to benefit Rexel as it manufactures low and ultra-low voltage electrical products

Rexel 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 Rexel are as mentioned:

1. Intense competition, based primarily on breadth of products, quality, services, price and geographic proximity
2. Fluctuation in global copper prices is a threat as most of the company’s raw material is composed of copper
3.High dependence on few suppliers for raw materials – 25 of top suppliers provide 50% of its raw material; any impact on these suppliers would directly affect the company


Rexel Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 6 competitors of Rexel:

1. Consolidated Electrical Distributors, Inc.

2. Graybar Electric Company, Inc.

3. W.W. Grainger, Inc.

4. Ahlsell

5. Sonepar SA

6. WESCO International, Inc.

Hence this concludes the Rexel SWOT analysis.

Continue reading more about the brand/company.

About Rexel

Rexel Overview
Parent Company

Rexel S.A

Category

Electronics

Sector

IT & Technology

Tagline/ Slogan

A world of energy

USP

Low and ultra-low voltage electronics

Rexel STP
Segmentation

Electronics and electronics equipment

Target Group

Corporates, security systems, electrical contractors

Positioning

‘Energy in motion’ – bringing about dynamism in the market

 

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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