SWOT Analysis of Patanjali. Patanjali Ayurved is an Indian conglomerate multinational company. Baba Ramdev and Acharya Balkrishna laid the foundation of the company in 2006. The headquarter of the company is in Haridwar, Uttarakhand, India.
Some of the main products and services of Patanjali are as follows;
- Cleaning agents
- Personal care
- Consumer goods
- Ayurvedic Medicine
Key statistical facts and figures about Patanjali are as follows;
- The annual revenue of the Indian conglomerate company in 2022 was 242 billion Indian Rupees
- The net income of the company in 2021 was 80 million US dollars
- Approximately more than 200,000 employees are working for the company to manage its worldwide operations
Some of the main subsidiaries of Patanjali are as follows;
- Advanced Navigation and Solar Technologies
- Patanjali Renewable Energy
- Ruchi Soya
Some of the top competitors of Patanjali are as follows;
- Prachin Ayurved Kutir
- Pharm Easy
- Maharishi Ayurveda Products
- Apollo Pharmacy
- Healthline Media Inc
Today, we’ll discuss the swot analysis of Patanjali. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the leading Indian conglomerate company. Here’s the swot analysis of Patanjali as follows;
Strengths of Patanjali
Some of the main strengths in the swot analysis of Patanjali are as follows;
Patanjali is successfully upgrading its business to the latest market trends like online shopping. The company has established a very competitive e-commerce platform in recent years and offers a wide range of products and goods online. In fact, the company’s online store contributes significantly to the total sale of the company.
Along with traditional marketing and promotional campaigns; Patanjali is successfully employing word-of-mouth marketing campaigns to attract the attention of customers. Baba Ramdev is the co-founder of the company and the world’s renowned Hindu yogi. He promotes the company’s products and brand name at its yoga sessions, camps, seminars, and public gathering.
Patanjali has established a strong distribution network across India. According to an estimate, the company has a network of more than 15000 retail outlets across the country. The company sells its products and goods at medical and non-medical stores, and it helps the brand to approach the mass audience and earn the trust, confidence, and loyalty of customers.
Herbal and natural products are the highlighting USPs of the company, and Patanjali focuses on marketing the benefits of natural products. The Indian mass public has accepted the usage of natural products and herbs, rather than using chemicals. However, natural and herbal products and goods offer the company a unique competitive edge.
Introducing New Products
Patanjali has expanded its product portfolio and launched a wide variety of products in various categories. Some of the latest product introductions of the company are cheese, buttermilk, curd, flavored milk, cow milk, mixed vegetables, sweet corn, peas, urea-free cattle feed, and solar production.
The target customer market of Patanjali is lower-income and lower-middle-class people. In order to attract their attention, the company charges 20-30% lower prices than its competitors. When people see budget-friendly and affordable products, it makes them place an order or visit the company’s retail outlet and buy it from there.
Weaknesses of Patanjali
Some of the main weaknesses in the swot analysis of Patanjali are as follows;
Limited Margin for Distributors
The main focus of Patanjali is to sell a mass volume of products and goods and goods to the mass audience, rather than focusing on the profit margin. This type of strategic approach leaves a limited profit margin for the distributors than the distributor of competitive companies. However, when distributors receive better offers from competitors, they would easily switch to other brands.
Many experts have suggested that Patanjali has got a very large and diverse product portfolio; it is way more than the company could manage it. There are various products in its portfolio that are not generating any profit, but the company is still keeping them. Resultantly, such types of products are negatively impacting the revenue and profitability of the company.
Overreliance on Leadership Influence
Baba Ramdev is the co-founder and brand ambassador of the company. In fact, Patanjali is heavily relying on his visionary leadership and public influence for its growth, productivity, and mass market reach. He is single-handedly leading the company in the right direction. Once he himself publically apologized for the indecent comment and attitude of the personnel of his company.
Opportunities for Patanjali
Some of the main available opportunities in the swot analysis of Patanjali are as follows;
There is a vast rural Indian market that Patanjali hasn’t covered yet. The company should consider expanding its market and business in rural areas; it would help the company to multiply its earnings and profitability. It is because natural and herbal products could easily attract their attention.
Patanjali has already entered the food market. The company could amplify its market growth and profitability by launching readymade food and quick restaurant service. It allows the company to establish a powerful brand image and reputation in the market; because food is a regular and daily use item that people can’t miss.
Along with local market expansion, Patanjali should consider expanding its business into the global market like the Middle East, Asia, Africa, Europe, and America. In fact, the company should follow the footsteps of its competitive brands like Dabur, Amul, and others.
The worldwide consumer market is shifting towards organic, natural, and herbal products. Patanjali is already operating its business in the same natural and organic products area. Now, the company should exploit this opportunity and launch market and promotional campaigns to remind people of the company’s offers.
Threats to Patanjali
Some of the main potential threats in the swot analysis of Patanjali are as follows;
Patanjali has recently launched a product “putarjeevak beej” which claims for the male birth of the child. It received a lot of criticism from the market, and various social influencers and celebrities have spoken against it. Such types of products are jeopardizing the growth and profitability of the company.
Napali Drug Administration department has recently issued a statement that Patanjali’s medical products and goods have got lower quality. They found toxins, mold bacteria, and its products couldn’t pass microbial tests.
Indian food industry and crops are heavily reliant on the rainy monsoon seasons. Flooding, droughts, and changes in the natural climate could jeopardize the food harvesting market. When it happens, then it becomes highly difficult for the company to offer low cost goods.
Conclusion: Patanjali SWOT Analysis
After an in-depth study of the swot analysis of Patanjali; we have realized that Patanjali is a leading Indian conglomerate company. If you are learning about the business of Patanjali, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.