SWOT Analysis of LAND ROVER

One of the world’s leading multinational Premium car manufacturers has started its operations in 1948 and is continued to be a market leader in the UK. The company has been in hand of many owners over the years such as Rover Company, Leyland Motor Corporation, British Leyland, and Ford Motors but since 2008 Tata Motors has been leading its growth trajectory globally.

The premium car manufacturer has been known for its technological advancement and creative design.

Strengths in the SWOT Analysis of LAND ROVER :

1. Strong Brand: The two iconic brand of the group Jaguar & Land Rover supported by the parent conglomerate Tata Motors, is what helping the company in being competitively ahead of its competitors. In the year 2017, it has been included in Interbrand’s elite club of the world’s 100 most valuable brands.
2. Effective CRM: Strengthening its relationship management is what helping the company in building the sustainable business through proactively understanding the customer problems, anticipating & solving customer problems resulting into increase in the share of heart and customer delight.
3. Smarter Working: In order to streamline various processes it continuously involves the employees especially the young generation for creating efficiencies, eliminating waste, and ensuring sustainable & profitable business. In its Engine Manufacturing Centre employees implemented effective engine-part fitting process which helped the company in improving the efficiency by 65% in the year 2016.
4. Strong Hold in Retail business: Company has continued its focus on Retail business with 11% increase in retail business in the year 2016 by exporting around 80% of the vehicles on retail basis globally in more than 155 countries worldwide.

Weaknesses in the SWOT Analysis of LAND ROVER :

1. Negative sales growth from the Emerging markets: Although the premium segment automotive companies are growing with the underlying potential of the emerging markets but Land Rover has the negative growth rate in the emerging markets i.e. 18 % decrease in Asia Pacific regions.
2. Market Myopia: More than 45% of its Retail sales come from the UK & European nation which may result in the loss of revenue in these markets as these are the mature markets and due to intense competition revenue are shrinking, and which in long run may result in loss of market share of the company.

Opportunities in the SWOT Analysis of LAND ROVER :

1. Changing lifestyle & customer groups: Three powerful forces are roiling the auto industry- Shift in consumer demand, expanded regulatory requirements for safety and fuel economy, and the increased availability of data and information.
2. Market expansion: Entering new markets like Asian & BRIC nations may bring an upsurge in demand for vehicles.
3. OEM priorities: Given the increase in electronic content, OEMs need to collaborate with suppliers and experts outside the traditional auto industry. Accomplishing this will require changes in the way OEMs function. OEMs will be looking to their top suppliers to co-invest in global platforms. 

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Threats in the SWOT Analysis of LAND ROVER :

1. Intense Competition: Presence of a large number of players in the premium Automobile industry is resulting into more branding by the companies resulting in shrinking margins. Every other company is eating others share and leaving little scope for new players.
2. Geopolitical risk: With an increase to its global footprints company’ s operational ecosystem gets affected by political instability, fuel shortages, alternative fuel/ recourses, epidemics, wars, terrorism, natural disasters, labor strikes, uncertainty due to inconsistency and ambiguity in economic and government policies.
3. Product Life Cycle: Due to frequent updation, change in technology and competition in the industry the lifetime of the models of the vehicles tend to have a short span which is making the today’s competitive advantage obsolete tomorrow.