Marketing91

  • Home
  • Categories
    • Marketing
      • Advertising
      • Branding
      • Sales
      • Retailing
      • Consumer Behavior
      • Distribution
      • Market Research
      • Pricing
      • Product Management
      • Strategy
      • Segmentation
      • Targeting
      • Positioning
      • Services Marketing
      • Articles
    • Digital Marketing
      • Blogging
      • SEO
      • E-commerce
      • PPC
      • Email marketing
      • Social Media Marketing
      • Facebook Marketing
    • Brands Analysis
      • Marketing Mix
      • SWOT
      • Strategies
      • Competitors
      • Lists
      • Expensive
    • Management
      • Customer Management
      • Communication
      • Leadership
      • Decision Making
      • Delegation
      • Organizational Management
      • Motivation
      • Personal Development
      • Project Management
      • Risk Management
      • Team Management
      • Time Management
    • Careers
      • Interviews
    • Business
      • Business Models
      • Logistics
      • Supply Chain
    • Human Resources
    • Skills
  • News
  • About Us
    • Contact Us
  • Academy

SWOT analysis of Videocon

March 9, 2019 By Hitesh Bhasin Filed Under: SWOT of Brands

Videocon is a company with operations in diverse areas like consumer electronics, home appliances, and entertainment. Their primary products are televisions, air-conditioners, refrigerators and washing machines. They recently have also got into direct digital broadcasting and cable networks and also sell mobile phones and tablets.

The company registered an annual revenue of INR 30.72 billion and the CAGR predicted is around 15 percent in the d2H segment. The company was set up almost 4 decades ago and started off with television manufacturing. They have registered steep growth primarily because of their strategy to look at diversified sectors. Currently, Videocon also has business interests in areas like power, oil exploration, and telecom.

Table of Contents

  • Strengths in The SWOT analysis of Videocon
  • Weaknesses in The SWOT analysis of Videocon
  • Opportunities in The SWOT analysis of Videocon
  • Threats in The SWOT analysis of Videocon

Strengths in The SWOT analysis of Videocon

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Videocon:

  • History: Videocon is backed by a rich history of presence in the electronics segment. The company was the first to secure a license to make color televisions and in a matter of ten years, the company diversified into washing machines and air-conditioners.
  • Presence in diversified sectors: The company has the presence in a number of sectors such as home appliances, consumer electronics, digital television, oil & gas, retail, telecommunication and power. There are also talks of a purchase of Videocon getting ready to purchase an IPL team in India.
  • Steep growth in dtH connections: Though Videocon was one of the last entrants in the DTH market the company has around 10 million customers which it has secured in the last four years. The company is currently the market leader in the high definition categoryin India.
  • Good customer connect: The company has extremely good customer connect and the research on consumer behavior is strong which is helping it to develop products that are in tune with what the customer wants. This has helped them reinvent themselves even in trying times and they have even channeled their diversification moves in accordance with customer feedback.
  • Oil & gas exploration: Videocon discovered the oil and gas field in Mozambique and this has six times more potent than the oil and gas discovery of Reliance and BP in the Krishna Godavari basin.
  • Propensity to take the right risks: The company has always been taking the right risks and many of these risks have proven to be fruitful for the company in the long run. Some examples of profitable risks taken by Videocon include the foray into oil & gas and DTH.
Also Read  SWOT analysis of Pepe Jeans

SWOT analysis of Videocon - 1

Weaknesses in The SWOT analysis of Videocon

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Videocon are:

  • Scaling up of operations: Videocon has operations in various domains and there is high competition in each of them.In order to be profitable, it may be necessary for the company to scale up their operations which may be difficult for Videocon in its current scenario.
  • Over-dependence on oil & gas: Videocon is a debt-ridden company and the company is highly dependent on their oil & gas business to clear off their debts. The company has debts to the tune of INR 27,000 crores and the only profitable business currently for the business is oil & gas.
  • Investment in unknown business areas: Videocon diversified into areas like DTH and insurance and mobile phones which are not part of their core areas of expertise. Some of these areas involve expensive licenses like telecom for example or financial services which are proving to be a costly affair.
  • High stakes in consumer electronics: Videocon depends on the consumer electronics division which sells televisions, washing machines, air-conditioners etc and it contributes to almost 90 percent of their profits. This is a highly competitive sector and thus the margins are lowering day by day.

Opportunities in The SWOT analysis of Videocon

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:

  • New segments: There is a lot of focus on new technology areas like artificial intelligence and machine learning which are going to lead to new segments like interconnected devices and smart technologies. This can create a lot of new segments for the company to target in consumer electronics domain.
  • Expansion to foreign markets: With IoT, the demand for home appliances will increase and people will want to invest in smart devices. This can create a surge in demand for home appliances that are based on smart technologies in a global level.
Also Read  SWOT analysis of Motorola Inc

SWOT analysis of Videocon - 2

Threats in The SWOT analysis of Videocon

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:

  • Competition: The main competitors of Videocon are Sony, Whirlpool, IFB, Samsung, Airtel, Tatasky etc..
  • Ethical Issues: In some of their business areas like insurance and telecom there are lots of challenges in areas like distribution of bandwidth, licensing etc and these are creating serious ethical dilemmas for the company.

Liked this post? Check out these detailed articles on Topic of SWOT of Brands

Alternatively, check out the Marketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies.

Marketing91 Academy

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.

Related posts:

  1. SWOT Analysis of McDonalds
  2. SWOT analysis of Aquaguard – Aquaguard SWOT analysis
  3. SWOT analysis of Absolut Vodka – Absolut SWOT analysis
  4. SWOT analysis of Nivea – Nivea SWOT analysis
  5. SWOT analysis of Pantene – Pantene SWOT analysis
  6. SWOT analysis of Zara – Zara SWOT analysis
  7. SWOT analysis of Duracell – Duracell SWOT analysis
  8. SWOT Analysis of Easy Jet – Easy Jet SWOT Analysis
  9. SWOT Analysis of Rado – Rado SWOT Analysis
  10. SWOT Analysis of Timex – Timex Fashion Watch SWOT Analysis

Join the Marketing91 Academy

Marketing Masterclass

Management Masterclass

Management Masterclass

Communication Course

Communication Masterclass

View All Courses
Economics Masterclass

Economics Masterclass

Sales Masterclass

Sales
Masterclass

Advertising Masterclass

Advertising Masterclass

View All Courses
Leadership Masterclass

Leadership Masterclass

Branding Masterclass

Branding
Masterclass

Strategy Masterclass

Strategy
Masterclass

View All Courses
Not found what you are looking for? Search this website.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement
Recent Posts
  • Informational Power: Definition, Sources and Importance
  • Reward Power in Leadership: Definition and Examples
  • Expert Power: Definition, Examples and Development
  • Legitimate Power: Definition, Examples, Advantages and Disadvantages
  • Nike, Adidas, Shein, and Temu Sent Letter From House China Committee About Forced Labor
Advertisement

Marketing91

MORE INFO

  • About Marketing91
  • Marketing91 Team
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Editorial Policy
  • Advertise
  • Contact us
  • Sitemap

WE WRITE ON

  • Marketing
  • Business
  • Management
  • Brands
  • Digital Marketing
Search
[email protected]

Copyright © 2023 Marketing91 All Rights Reserved