SWOT Analysis of Bentley

Bentley is a British automobile manufacturer. It is known all over the world for its luxury cars. It was established on 18^th January 1919 in North London. It is headquartered in Crewe, England. Its parent company is Volkswagen. In 1931 Rolls-Royce bought Bentley from Vickers and later due to financial problems it sold it back to Vickers. Vickers then later made a deal with Volkswagen. Its current Chairman and CEO is Wolfgang Dürheimer.

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Strengths in the SWOT Analysis of Bentley :

Popularity: They are very popular because of their unique mix of luxury and sporty nature in their cars. They also can leverage the German engineering of their parent company that goes into its making.
Brand Uniqueness: As Bentley does not believe much in promotions, it maintains exclusivity. Every customer feels unique and special upon the possession of a Bentley. Hence, being expensive and of high quality only adds positive points towards its points of differentiation.
Technology and R&D: All bentley cars are made superior, beyond the technology of normal cars. Their speed, durability and performance are legendary. They are clearly technological leaders of their field.
Car designs – Bentley makes one of the most beautiful cars in the world. They have a good product portfolio which will impress an auto connoisseur. And time and time again, Bentley has impressed the world with its suave and modern car designs.
Brand Value: They have high brand equity which makes them less vulnerable to competition. They have carved a niche market for themselves. This has increased the barriers for new entrants in the market.
Exclusivity: Possession of Bentley makes the customer feel special. As they are the exclusive clientele of the company they feel like royals and this makes the brand all the more special.
Heritage: A bentley is known for its heritage. Before the Audi’s and the BMW’s took over, a bentley was still leading the market as a car for the Uber rich. Thus, when you own a Bentley, you take part in a rich cultural heritage.

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Weaknesses in the SWOT Analysis of Bentley :

Limited Reach: As they are not present in many countries and maintain their exclusivity they are losing out on emerging markets. Emerging countries have many rich and affluent people who can be their potential market but Bentley is not able to tap this.
Long Waiting: To maintain their exclusivity and high standards Bentley only produces a limited number of cars every year. A lot of customers have to wait for a long time just to book their cars. Due to this, they lose out to their competitors like Jaguar-Land Rover, Daimler and Rolls-Royce. Limited production is a loss of their revenue and profits.
Small Target Group: They serve a niche segment of the population. There is very little scope for growth in this segment. Hence high growth is not sustainable.
Not Environmental friendly: They have been brought to the limelight as their cars are subjected to high environmental pollution. One of their manufacturing units is based on the banks of Loop River Power Canal. This canal is an important part of environment hosting many bio-diverse creatures and has become an important freshwater estuary. But Bentley has been polluting this fresh water canal. The presence of waste heat is causing undesirable changes in the environment. A matter like this decrease the brand value of Bentley.

Opportunities in the SWOT Analysis of Bentley :

Become more Environmental friendly: Bentley can become environmentally friendly and start looking towards more economic and better thermal fuel alternatives like hybrid or electric. They should also strive for stakeholder sustainability.
Mergers and Acquisition: They can acquire other lower brands and start catering to other segments of the population. They can leverage the brand name of Bentley and leverage it for higher returns.
Focus on Emerging Markets: Bentley needs to focus on the affluent class in the emerging markets and start catering them as well. E.g. India
Promotions: They do not promote their brand via advertisements so they can sponsor some premium events to showcase their brand name and increase their brand recall.

Threats in the SWOT Analysis of Bentley :

Changing government norms: Government laws are becoming more and more stringent towards pollution and environmental protection. Bentley needs to see this and do the necessary changes to their fundamentals and ride the change of wave.
Increasing Fuel Prices: Increase in fuel prices is a serious issue to the automobile industry, Bentley needs to focus on alternative fuels. This will serve this purpose and also fulfil the environmental concern factor as well.
Competition: Bentley’s competition is more visible because of their marketing campaigns. This can hamper their growth and result in a decline in sales.
Economy – A major factor which affects all ultra premium players is the Economy. If the economy goes south, then companies like Bentley will find it hard to keep standing in a storm.