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SWOT analysis of Jeep

February 24, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands

Jeep is a brand of American automobiles that is a division of FCA US LLC, a wholly owned subsidiary of Fiat Chrysler Automobiles. The former Chrysler Corporation acquired the Jeep brand, along with the remaining assets of its owner American Motors, in 1987. The division is headquartered in Toledo, Ohio. Here is the SWOT Analysis of Jeep.

Table of Contents

  • Strengths in the SWOT analysis of Jeep :
  • Weaknesses in the SWOT analysis of Jeep :
  • Opportunities in the SWOT analysis of Jeep :
  • Threats in the SWOT analysis of Jeep :

Strengths in the SWOT analysis of Jeep :

1) Strong image and brand reputation – The image of Jeep as a brand is very strong and it has built a good reputation in the consumers’ minds over the years. The brand advocates spreading positive word of mouth about the company’s vehicles.

2) The iconic design which is associated with ruggedness and reliability – The design of Jeep vehicles have included itself in the iconic ones in the automobile industry. The design of the vehicle itself speaks volumes about the brand and does not need any introduction.

3) Excellent Towing and Off-road Capabilities – The Jeep vehicles have been established for excellent towing capabilities or we can say strong vehicle segment. This is mainly because of its 4×4 and all-wheel drive abilities.

4) Adventurous brand name – The name of the brand is identified as adventurous in itself. This clearly indicates the utility and the segment of the car it is targeting to making it easy for marketing the products.

SWOT analysis of Jeep 1

Weaknesses in the SWOT analysis of Jeep :

1) High priced vehicles – The Jeep vehicles are priced higher in comparison to its competitors. People who love the brand Jeep are the ones who are mostly interested in buying it because of this limiting the scope of targeting more customers.

Also Read  SWOT analysis of Hyundai Motors

2) Same design over the years – Yes, people recognize Jeep from its design yet they are using the similar design for a long time which may build a negative perspective on no innovation in people’s minds.

3) Low Global Penetration – The market penetration at the global level is low which may be because of multiple reasons. This affects the image of the brand as Jeep poses itself as an international brand.

Opportunities in the SWOT analysis of Jeep :

1) Enter into growing markets – They can look for entering some growing markets with a slightly lower cost models to increase their reach and establish itself as a truly global brand.

2) Target the Millennial Generation – Jeep should be looking forward to having a right mix of product portfolio which can be targeted to tap the millennial generation. This is very important for a versatile brand like Jeep to not miss this segment of customers in the coming years.

3) Growing health-conscious population – This is also a good opportunity for Jeep to explore as the current generation is health conscious who likes to travel, hike, and do other adventurous stuff. Jeep is already placed with a good brand name with such segment so it won’t be difficult for them to further use that as a huge opportunity.

4) Innovation through technology – The Company is largely dependent on its age-old design and brand name. They can look for some technological advancements, in-house or through partnership, which can help them to transition as per the current needs of the customers.

SWOT analysis of Jeep 2

 

Threats in the SWOT analysis of Jeep :

1) The invention of Electric vehicles – The entrance and efficiency of electric vehicles in the automobile industry has become a looming threat to every car company in the world and Jeep is no untouched. They will have to re-think their strategy according to the future of how people are going to travel.

Also Read  SWOT analysis of Sprite

2) Increasing fuel prices – The prices of fuel and maintenance are ever increasing because of which people are moving towards the cheaper options like gas, use of cabs, electric, etc. Jeep needs to keep these things in mind for next level of strategies.

3) Increasing pollution and changing government regulations – With changing environment conditions because of continuous increase in pollution is making it difficult for countries to carry on with the traditional fuel vehicles, therefore, they are changing/limiting the use of such vehicles. This is another area of threat not only for Jeep but other similar brands as well.

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About Hitesh Bhasin

Hi, I am an MBA and the CEO of Marketing91. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. You will generally find me online at the Marketing91 Academy.

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