SWOT analysis

1. Leader among India’s FMCG

companies
2. Some brands in 100 most trusted
brands
. 3. Presence in more than 60 countries
4. Over 1,300 full-time employees
STRENGTHS 5. Widespread distribution network across
India
6. To support the sales team it has a
network of 33 C&F agents, 1,200+
distributors, 150 super stockists, 3,200
sub stockists and 650,000 retailers in
India.
7. Recognized Godrej Research &
Development Centre

1. Market share is limited due to presence

of other strong FMCG brands
WEAKNESS 2. Godrej products has stiff competition
from big domestic players and
international brand

1. Tap rural markets and increase

penetration in urban area.
2. Mergers and acquisitions to strengthen
OPPORTUNITIES the brand
3. Increasing purchasing power of people
thereby increasing demand
 1. Intense and increasing competition
amongst other FMCG companies.
THREATS 2. FDI in retail thereby allowing
international brands
3. Competition from unbranded and local
products

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STRENGTH  The Company has got wide range of
branches within the country.
 The Company has wide range of
product line.

 Godrej is having better Sales after

services.

 The Company has there respectable and

believable brand name.

 Company is having large number of

customer with higher satisfaction.

 The management is trained and

efficient & the network of service
centers is good in all states
WEAKNESS  The Company does not go for
advertising, which is one of the biggest
disadvantage of Godrej.
 Its emphasis more on the advertising of
office automation & prima division.
  The company is focusing many security
products at a same time.
 The effective selling schemes are not
available like payment on installments.

OPPORTUNITIES  Godrej has more opportunities to grow

as it has earned good name in security
sector.
 Technical up gradation time to time is
also one of the opportunities.
 Godrej can focus on big project like
construction. Where there is a great
demand of security equipments

THREATS  The growing competition in the

security sector is threat for all
manufacturing companiesso it is also
threat for Godrej to stand in the market
with the higher position.

PESTEL
Political factors are often related to the level of intervention and nature of intervention of the local
and national government in the business and economic environment. Government policies and
governance system plays a huge role in nature and objectives of the policies.

 Governance System – The present governance system in India has served its purpose for
the long time and I don’t think much will change in the process even though it may throw up
leaders that can lead divergent policy making from the historical norm. Godrej Consumer has
to keep a close eye on the industry wide government priorities to predict trends.
 Changing policies with new government – Studying the current trends it seems that there can
be a transition of government in India in next election. Godrej Consumer has to prepare for
this eventuality as it will lead to change in governance priorities of Consumer/Non-Cyclical
sector.
  Armed Conflict – There are no imminent threats to India from the disruption in the business
environment because of military policies, terrorist threats and other political instability. Godrej
Consumer has experience of handling operations in difficult circumstances.
 Government of India has come under increasing global pressures to adhere to World Trade
Organization’s regulations on Personal & Household Prods. Industry.
 Political stability in the existing markets – Godrej Consumer operates in numerous countries
so it has to make policies each country based on the Personal & Household Prods. industry
specific requirements. Given the recent rise in populism across the world I believe that India
can see similar trends and may lead to greater instability in the India market.
 Regulatory Practices – Godrej Consumer has to manage diverse regulations in the various
markets it is present in. Over the last few years India and other emerging economies have
changed regulations regarding not only market entry but also how companies in Personal &
Household Prods. can operate in the local market.

Economic factors includes – exchange rate, consumer disposable income, taxation rate, the stage
of economy of countryname, interest rate, economic performance of countryname, labor market
conditions , inflation rate etc.

 Economic Cycles – The performance of Godrej Consumer in India is closely correlated to the
economic performance of the India's economy. The growth in last two decades is built upon
increasing globalization and utilizing local resources to cater to global markets.

 Efficiency of financial markets in India – Godrej Consumer can access vibrant financial
markets and easy availability of liquidity in the equity market of India to expand further
globally.

 Skill level of workforce in India market – The skill level of human resources in India is
moderate to high in the Consumer/Non-Cyclical sector. Godrej Consumer can leverage it to
not only improve services in India but also can leverage the skilled workforce to create global
opportunities.

 Exchange rate – The volatile exchange rate of India can impact Godrej Consumer
investment plans not only in the short term but also in the long run.
  Economic Performance of India – I believe the economic performance of India in the near
future 5-10 years will remain stable given – government expenditure, stable demand
because of disposable income, and increasing investment into new industries.

 Government intervention in the Consumer/Non-Cyclical sector and in particular Personal &

Household Prods. industry can impact the fortunes of the Godrej Consumer in the India.

Each society and culture has its own way of doing business. These social factors can not only help
companies like companyname to better understand the way of doing business but also in
understanding the customer preferences in sectorname sector of countryname. Social factors
include – culture, acceptance of entrepreneurial spirit, health & safety attitudes, demographics,
societal roles and norms, traditions, attitude towards certain products and services, gender roles,
and leisure interests.

 Migration – The broader attitude towards migration is negative in India. This can impact
Godrej Consumer ability to bring international leaders and managers to manage operations
in the country.

 Gender roles – The gender roles are evolving in India. Godrej Consumer can test various
concepts to cater to and support these evolving gender roles in India society.

 Attitude towards health and safety – With increasing liberalization the attitude towards health
and safety are getting lax. Godrej Consumer needs to stay away from these attitudes as the
cost of failure is too high in India.

 Access to essential services – By and large over the last decade and half the wider
population in getting access to essential services in India. This has been a result of
increasing investment in public services.

 Power structure – There is an increasing trend of income inequality in India. This has altered
the power structure that has been persistent in the society for over last 6-7 decades.
  Leisure interests – the customers in the India are giving higher preferences to experiential
products rather than traditional value proposition in Consumer/Non-Cyclical sector. Godrej
Consumer can leverage this trend to build products that provide enhanced customer
experience.

Technology is fast disrupting various industries and sectorname is no different. There are numerous
ways technological factors are impacting the companyname & industryname in countryname. Some
of the technological factors are – access to greater information, innovation in customer services, rate
of technology driven change, access to mobile phones driving empowerment, supply chain
disruption because of technology, innovation in product offerings, population access to technology
etc.

 Latest technology based innovations implemented by competitors of Godrej Consumer –

This can provide a good insight into what the competitors are thinking and where Personal &
Household Prods. business model future is.

 Developments and dissemination of mobile technology has transformed customer

expectations in the Consumer/Non-Cyclical sector. Godrej Consumer has to not only meet
and manage these expectations but also have to innovate to stay ahead of the competition.

 Research and development investment at both macro level and micro level in India. If there
is an environment of creative disruption and both government and private players are
spending resources on developing new solutions.

 5G and its potential – Godrej Consumer has to keep a close eye on the development and
enhancement of user experience with increasing speed and access. This can completely
transform the customer user experience in the Personal & Household Prods. industry.

 Intellectual property rights and patents protection – If India have higher safeguards for IPR
and other intellectual property rights then more and more players are likely to invest into
research and development.

 Technology transfer and licensing issues for Godrej Consumer – In the Consumer/Non-
Cyclical sector there is no strong culture of technology transfer and companies often are
 reluctant to transfer or license technologies for the fear of creating competitors out of
collaborators.

Over the last decade sustainability and environmental factors are becoming critical for businesses.
Government and pressure groups are fast asking organizations to adhere to environmental
standards. Some of the environmental factors are – limiting carbon footprints, insurance policies,
climate change, safe waste disposal, increasing focus on sustainability, safe disposal of hazardous
material, safe water treatment, laws regulating pollution etc.

 Paris Climate Agreement has put real targets for the national government of India to adhere
to. This can result in greater scrutiny of environmental standards for Godrej Consumer in
India.

 Environmental norms are also altering the priorities of product innovation. In many cases
products are designed based on environmental standards and expectations rather than
catering to traditional value propositions.

 Renewable technology is also another interesting area for Godrej Consumer. It can leverage
the trends in this sector. India is providing subsidies to invest in the renewable sector.

 Extreme weather is also adding to the cost of operations of the Godrej Consumer as it has to
invest in making its supply chain more flexible.

 Customer activism – Greater awareness among customers have also put environmental
factors at the center of Godrej Consumer strategy. Customers expects Godrej Consumer to
adhere to not only legal standards but also to exceed them to become responsible
stakeholder in the community.

 Waste management especially for units close to the urban cities has taken increasing
importance for players such as Godrej Consumer. India government has come up with strict
norms for waste management in the urban areas.

Legal plays an important role in the development of Personal & Household Prods. sector in any
economy. Godrej Consumer management has to consider following legal factors before entering
international market – intellectual property rights protection, biasedness toward home players, data
protection laws, discrimination laws, copyrights law, time taken to deliver justice, system of justice
etc.

 Time take for business cases in court – some countries even though follow international
norms but the time for resolution often run in years. Godrej Consumer has to carefully
consider average time of specific cases before entering an international market.

 Environment Laws and guides – The level of environmental laws in the India and what
Godrej Consumer needs to do to meet those laws and regulations.

 Business Laws – The business laws procedure that India follows. Are these norms
consistent with international institutions such as World Trading Organization, European
Union etc.

 Health and safety norms in the India and what Godrej Consumer needs to do to meet those
norms and what will be the cost of meeting those norms.

 Data protection laws – Over the last decade data protection has emerged as critical part of
not only privacy issues but also intellectual property rights. Godrej Consumer has to consider
whether India have a robust mechanism to protect against data breaches or not.

 Employment law in the India and how they are impacting the business model of the Personal
& Household Products. Can these conditions be replicated or bettered in international
market?

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ORGAN IZ AT ION AL CULT U RE

The influence of family-controlled business can be seen on the organizational culture. The
mission and vision statements are clearly defined for the group companies and the family and the
senior management adheres to it.
Vision: Godrej in Every Home and Workplace

Mission: Enriching Quality of Life Everyday Everywhere

Values: Integrity, Trust, To Serve Respect, Environment

Respondents rated Godrej above average and above in terms of adherence to the mission and
vision statements. However, 43% of the respondents believed that family control has reduced
dynamism to an extent and that Godrej has not utilized its resources and assets fully. Godrejs
recent foray as Godrej Properties is a step towards capitalizing its vast land assets.