SWOT analysis of Himalaya Drug Company

The Himalaya belongs to the Himalaya Drug Company which was established back in the year 1930. It is based out of India in the city of Bangalore. It has a distribution network which is established in more than 90 countries across the globe.

Strengths in the SWOT analysis of Himalaya Drug Company

This helps in understanding the core areas of the business where it beats the competition and has the competitive advantage in the market. Strengths are generally the core competency of the business.

1. Location is a big positive for the business – The location brings an added advantage to the business as it is located in the foothills of the Himalayas which sends an altogether a different message to the customers of being organic in nature.
2. Customer Perception is positive – The name of the brand creates a positive perception in the minds of the customer and again the products are manufactured in the foothills which further enhances the trust in the brand.
3. First Mover Advantage – The brand leapfrogged the competition by being the number in the industry to serve frozen foods.

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Weaknesses in the SWOT analysis of Himalaya Drug Company

This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind from competition. Though there will be some or the other weakness but it should not be an area which takes the business out of the market

1. Big Working Capital – The business needs big capital for its operations and hence there is a continuous need of cash flow which is required to deliver end products to the customer.
2. High Dependence on Raw Materials –There is a high dependence on the raw materials which are seasonal in nature and hence the non-availability of raw materials adds to the hindrance in the manufacturing of goods and also it adds to the cost of the food ass the raw materials need to be over cultivated and kept in storage to be preserved.
3. High Sensitivity of Crops – The crops are highly sensitive to the preservatives and pesticides which are used to enhance the cultivation and hence there is a high cost involved in the production of raw materials as there are potential losses to the crop.

Opportunities in the SWOT analysis of Himalaya Drug Company

This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base

1. Global markets – The business should expand globally as there is a ready market for organic produce. The preferences of the customers are changing and hence a proper marketing can lead to great benefits to the business.
2. Changing Demographics and Segmentation Variables – The business can be beneficial because of the changing lifestyle of the consumers who are inclining towards the organic products and hence the industry is increasing.
3. Marketing and promotion – The industry is nascent in nature and hence with proper marketing and promotions of the products the industry can be developed and positioning of the products can be done with positives of using the organic products.

Threats in the SWOT analysis of Himalaya Drug Company

This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers down the customer base and revenue

1. Inventory costs are high – The business has a high increasing cost because the manufacturing cost is high as it involves a huge investment to cultivate the crops and hence the inventory costs are high.
2. Threat of new entrants – As the industry is developing and lot of research has happened in this domain has attracted a lot of established global players which are entering the market and hence can pose a challenge to the business
3. High Cost of Products – There is a financial crisis in the world and with products being costly the consumers need a lot of push to understand the importance of the products so that they can use it.