Amul is an Indian dairy brand originating from the state of Gujrat. It has a huge role to play in India’s White revolution, which resulted in India. Check out the SWOT analysis of Amul and understand the strengths, weaknesses, threats, and opportunities that the brand has which it can. SWOT AMUL. 1. SWOT Analysis On AMUL BUTTER S W O T; 2. STRENGTHS Creative advertising with Amul Baby print ads High brand.

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We use cookies to give you the best experience possible. The dairy industry in India is instrumental in providing cheap nutritional food to the vast population of India and also generates huge employment opportunities for people in rural places. The Department analysiss Animal Husbandry, Dairying, and Fisheries, which falls under the central Ministry of Agriculture, is responsible for all the matters relating to dairy development in the country.

This department provides advice to the state governments and Union Territories in formulating programs and policies for dairy development To keep focus on the dairy industry a premier institution known as the National Dairy Development Board was established.

This institution is a statutory body that was established in The main aim to set up the board was to accelerate the pace of dairy development in the country and attract new investments. India is a analhsis for investors looking for investment opportunities in the dairy industry. The dairy industry holds great potential naalysis investment in India and promises high returns to the investors. The reasons why the industry has huge potential for attracting new foreign investment are: There is a basic raw material need for the dairy industry; that is, milk is available in abundance.

India has a plentiful supply analyysis technically skilled laborers.

Amul SWOT Analysis | Competitors & USP | BrandGuide | MBA

There is an easy availability of technological infrastructure. India has all the key elements required for a free market system. The Brand Amul is a movement in dairy cooperative in India. After analyzing the vision and mission of the company it is pretty sure that the company would strive to expand its distribution network, would involve its manpower in creative marketing, plan for consumer education and product innovation, would leverage effectively on rising levels, grow affluence among Indian consumers and would tap the rising demand for new value added products.

Amul SWOT Analysis, Competitors & USP

Amul has around 2. Amul has often had a special connection with the film industry. A collation of some of the brilliant Amul adverts over the years is as follows: They do not complain if they have to stand behind an untouchable in the line. Hence, the cooperative has thus given a deathblow to the caste system in its own way. Customers can order a variety of products through analysks Internet and be assured of timely delivery with cash payment upon receipt.

Another e-initiative wsot is to provide farmers access to information relating to markets, technology and best practices in the dairy industry through net enabled kiosks in the villages.

For the third consecutive year, it has posted a double digit growth turnover reaching Rs. Pandemic economic turmoil has taken its toll, as international prices of all major dairy products have declined drastically in recent months.

However, with its sharp focus on domestic Indian market, Amul has successfully insulated Indian farmers from all the turbulence in global dairy trade. It is already providing the best employment option for displaced workers from urban manufacturing sector, who after losing their jobs due to recession, have started reverse migration from cities back to villages.


Also, at a time when due to lower production of cereals, fodder prices had jumped almost two-fold, GCMMF enhanced the supplies of cattle-feed to milk producers and maintained its prices below cost and were able to provide better returns to the milk producers to overcome the stress of draught.

Bhatol, who was enjoying his second three-year term, was a consensus candidate last year, even as the main political parties failed to choose a new head. Now, barely a year after his taking over for the second term, Mr. Bhatol is under pressure to relinquish the office. Bargaining Power of Suppliers GCMMF is a cooperative, which means it conducts business by collecting from large number of individual farmers who rely upon the cooperative to give them better price for their produce.

Therefore the bargaining power of such suppliers is low. Twenty nine lakhs milk producers gain higher profits only through the co-operative which in turn drives down their bargaining power. Bargaining Power of Buyers There are already other co-operatives existing in India, having their own established brands, which reduce the loyalty of current customers, thereby increasing their bargaining power.

Rivalry Among Competitors The market is highly competitive, existence of several players which have already established channels and partners constantly push the envelope. The competition exists locally, nationally and internationally.

Threat From Substitute Although no real substitute exist for milk, however competition offers low priced products as well as variety, from skimmed milk to full cream swoh well as milk powder.

Barriers To Entry The competition among existing players is very intense and grown over the years from collection of more and more producers. The producers only supply to such established brands due to their reach and ability to maximize profits. Also the industry is capital intensive along with several legal barriers. Strong supply chain partnerships 2. Efficient control and coordination of the network 3. High returns for the suppliers 4.

Use of technology to solve problems 5. Wide product portfolio 9. Investment and resources These factors are very critical and all players like have to control over them. They change from time to time and affect the finances and the competition. The current industry matrix puts Nestle at the top among others.

Although the matrix is not exhaustive and does not include all market leading companies, it still shows where the gaps are and the critical success factors. Nestle takes the lead because of high quality products and aggressive marketing, also the standards and technology used by Nestle is superior than Amul or Mother Dairy, which are domestic brands.

Products availability is important factor, analysks even one miss pushes the customer to seek a different competitor. Amul however is not far behind and can catch up in areas of technology and marketing. These key factors of success are critical in the dairy industry in particular, as they are the factors anakysis shape whether a company will be financially and competitively successful.

These critical factors may vary from time to time within the industry as driving forces and competitive conditions change. After calculating the weighted score for all three companies, it seems that Nestle has got the highest weighted zwot compared to the other two companies. This is because Nestle is able to achieve a high score in product availability success factor and Advertisement success factor. Nestle plays a lead role in advertisement. Their marketing strategy is to reach each and every one through advertisements.

They spend a lot in terms of Advertisements. Still Amul does come up with taglines of movies and current affairs. Wide diversity of 0.

Economies of scale 3. Strong supply chain 5. Leading national player 0. Lack of scalability 2. Low control over milk yield 3. Low investment Total 0. In the last few years, the cooperative has successfully launched several new product lines, which have been popular among wsot age groups.


In order to leverage from their distribution network, to optimize market supervision expenditures, to achieve increasing efficiency while keeping the distribution infrastructure lean, focused and productive, the amalgamation of its different distribution networks was done. Control over supply chain with industry best practices makes Amul the market leader in dairy products in India.

Milk products create an inherent weakness, which is perishability. The product can lose quality in a small time scope, therefore several other strengths relating to storage, movement and related logistics have to be improved.

Another weakness is that some of the products are very unpopular and cannot compete with other players; this weakness is in terms of frozen products, which are considered low in quality. The marketing for these products is missing and does not appropriately position it. Technology and transportation remain basic weaknesses which mar the efficiency of the entire supply chain.

As a Global enterprise, Amul will be meeting global demands and ensure greater productivity and the opportunity to enhance integration in order to increase efficiency and effectiveness in the business. It already has wide geographic positions and hence this will give it an advantage to get access to gain presence in mature markets.

By following the new GATT treaty, opportunities have increased tremendously for the export of agri-products in general and dairy products in particular. Local competitors are the major problem facing by Amul. They sell their products at a lower price, since being a low capital company; they have fewer expenses to take care of. Thus cutting down the extra cost will surely help. Adulteration is also a major threat to quality that takes place due to illiterate farmers from remote villages.

There are certain strategic factors, which are with a long-term mission, and some need to be addressed in the short term. There are other factors, which do not fall into either of the terms mentioned above; they are classified as intermediate term.

This will also benefit in global expansion of the company.

As short term defines a period analjsis a year or so, the solution should be found within a year for a proper success. These are classified into intermediate duration because the company anaoysis be able to overcome its weaknesses, make use of the opportunities and defeat the threats.

All this must be done at the right time to ensure efficient results. In this case the factors are such that the earliest short term might not be the best decision to make, as the duration might not be analysus to overcome all the issues with a clear outlay. They must be able to continue to maintain many products varieties and build on them efficiently. Last but not least is overcoming the threat of competitors in the long run.

Milk being a necessity product, the.

Quite reasonable, even on packed liquid milk. The margins are enough Flexibility of product mix: Presently, more than 80 per cent of to limit the entry of potential entrants. Large number of dairy plants in public and cooperative anallysis besides several others coming up in the private sector would result in competition. Because of this the end consumer would benefit and a good product mix would emerge. Professionally trained, technical human resource pool.