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Rexel SWOT Analysis

Published in IT & Technology category by MBA Skool Team Last Updated: January 03, 2024Reading time:

Here is a detailed SWOT analysis of Rexel covering strengths, weaknesses, opportunities and threats.

Rexel Strengths

  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

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

Rexel Weaknesses

  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

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

Rexel Opportunities

  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

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

Rexel Threats

  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

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

Hence this concludes the Rexel SWOT analysis.

About Rexel

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

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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