MRF or the Madras Rubber Factory is a well-known tyre producing company in India. It has soon made itself a multinational company and produces the largest number of tyres in India. It is headquartered Chennai, India and the company was founded in 1946.
Along with tyres they also manufacture things like treads, tubes, conveyor belts, toys, and paints. The company has also successfully established motorsport in India in the form of MRF challenge. Most of the factories of the company are in South India like Puducherry, Kerala, Trichy and many other places.
Strengths in The SWOT analysis of MRF
The strengths of any brand account for the positive aspects that make the brand what it is today. MRF being a strong company has utilized their strength to achieve the position that they are in today. So, let us see the strengths which are carried by MRF:
- Reaching milestone of Rs 5,000 crores: MRF was the first company in India, who managed to reach a level, where the turnover of the company reached an amount of Rs. 5,000 crores, thus being named as the number one company when it comes to the industry of tyres.
- Building a strong network: MRF possess a network of distribution which is very strong and developed, for example, the number of dealers in eastern, western, southern and northern zones is 14, 23, 33 and 27 respectively.
- A large number of manufacturing units: MRF has a total number of 6 units of manufacturing, which is distributed in southern India.
- Possessing a powerful exporting market: MRF holds a powerful and a very good market when it comes to exporting products, which is done across 65 countries approximately.
- Having a strong portfolio: There is a complete portfolio which is available with MRF when it comes to the manufacturing of different tyres made for different vehicles and their use.
- Brand value: MRF not only consists of a very strong value for the brand, but it also has the trust and the faith of the customers.
- Making varieties of tyres: MRF has always taken different measure to suit themselves with tyres which can take on different terrain conditions
- Financial condition: MRF stands in a very strong position in terms of financial condition
- The diversity of the company: MRF is broadly diverse into three main parts, which are, Funskool, MRF Racing and MRF Pace Foundation
- Reaching out with strong advertisements: A company which advertises itself to be a tyre making company in India, which is eco-friendly in nature.
These mentioned above were the reasons why MRF has grown so strong and tall in terms of tyre making companies in India, banking on the points of their strength.
Weaknesses in The SWOT analysis of MRF
Weaknesses of a brand counter for the downsides and the hurdles that a brand face along the way. Here are some of the weaknesses which are possessed by MRF, despite their very good strengths.
- Lack of volatility: MRF still lacks a lot of volatility, when it comes to the consideration of relations based on industries, for example, the unrest of the labors of MRF.
- Being in a very strong competition: MRF has a lot of competition in market, which is very intense and does somewhere effects the good going of MRF, especially after the presence of some of the worldly renowned global brands of the industry of tyres
These said above were the weaknesses which are possessed by MRF, despite having such good strengths.
Opportunities in The SWOT analysis of MRF
Opportunities are the places where the company has a scope for improvement which further works for their image in the future.
- Going through a fast growth: Markets emerging at a fast rate with the growth in the automobile industry.
- Maintaining good relations: Having a relatively good amount of tie-ups with certain companies and maintaining a good B2B market.
- Having a lot of diversity: Possessing a diversification of concentric and horizontal type.
Threats in The SWOT analysis of MRF
Threats are something that can harm the company’s reputation or market value. Unfortunately, even after being one of the best in tyre companies, there are some threats which are involved with MRF. These threats are:
- An on-going strike: An on-going internal strike in MRF along with the entire automobile industry in Chennai has traumatized the company to a great extent. It has hampered the manufacturing badly, and production is almost dead in Chennai.
- Constantly increasing the price of Raw Materials: The price of essential raw materials for manufacturing the goods like natural rubber and crude oil is constantly increasing, both nationally and internationally. This can create a lot of difficulties to get the supply of rubber in next two years as said by ANRPC.
- Availability of cheaper goods: In a comparison of MRF, cheaper goods are available in market imported from China. Though the quality is nowhere to MRF, it has been observed that it made 5% of business in the entire industry.