SWOT Analysis of Reliance. Reliance Industries Limited is an Indian conglomerate multinational company. Dhirubhai Ambani laid the foundation of the company in 1958. The headquarter of the company is in Mumbai, Maharashtra, India.
Some of the main products and services of Reliance Industries are as follows;
- Oil refining
- Oils and Gas
Key statistical facts and figures about Reliance Industries are as follows;
- The annual revenue of the Indian Conglomerate company in 2023 was 110 billion US dollars
- Out of which, the net income of the company was 8.4 billion US dollars
- Approximately 342,982 employees are working for the company to manage its operations
Some of the main subsidiaries of Reliance Industries are as follows;
- Sikka Ports and Terminals Limited
- Reliance Institute of Life Sciences
- Reliance Global Corporate Security
- Indiawin Sports
- Reliance Foundation
- Alok Industries
- Network 18 Group
- Reliance Petroleum
- Reliance Retail
- Jio Platforms
Some of the top competitors of Reliance Industries are as follows;
- Gail India Ltd
- Bharat Petroleum Corp Ltd
- Oil and Natural Gas Corp Ltd
- Indian Oil Corp Ltd
- Tata Sons Ltd
Today, we’ll discuss the swot analysis of Reliance Industries Limited. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the Indian conglomerate company. Here’s the swot analysis of Reliance as follows;
Strengths of Reliance
Some of the main strengths in the swot analysis of Reliance are as follows;
Reliance Industries is the largest public company in India in terms of revenue and profitability. It falls under the category world’s 100 top corporations. However, it contributes approximately 7% of India’s total exports of merchandise. It provides a strong leadership position to the company in the Indian market.
Reliance Industries is a well-recognized brand in the Indian market and across the world. Forbes has featured very few Indian companies, and Reliance is among one them. In fact, the company has won various awards and recognitions from the following organizations across the world;
- American Chemistry Council
- ICIS list of top 100 Companies
- National Golden Peacock Award
- Boston Consulting Group
- Industry Week Magazines
- National Energy Conservation Award
Reliance Industries has diversified its business into various categories like telecom, retail, energy, petrol, media, and others. It means that the company is not relying on one source of income, rather it has diversified its business and earning sources into various categories.
Marketing & Advertisement
In order to strengthen Reliance’s market position and amplify its brand recall rate, the company launches various types of marketing and advertisement campaigns. The company employs billboards, online ads, print, TV, and various other media channel to attract the attention of customers.
Corporate Social Responsibility
It is no doubt Reliance Industries has always taken a holistic approach when it comes to growth and progress. But Reliance is a highly socially responsible organization, and some of the CSR activities of the company are as follows;
- Sustainable development
- Community infrastructure and environment
- Environment protection derives
- Education and skill enhancement
- Community Healthcare
Weaknesses of Reliance
Some of the main weaknesses in the swot analysis of Reliance are as follows;
Low Market Share
Oil and gas, energy, telecom, and mass media businesses have developed a lot in recent years. In fact, they have become highly competitive with a lot of competition in the industry. High competition means that it would be difficult for the company to maintain its position in the market.
Reliance Industries has been involved in various types of controversies and conflicts. Some of them cost the company billions of dollars, and others have earned notoriety in the media and negative brand perception. Some of the controversies are as follows;
- Stock manipulation and penalty
- Possession and future retail deal
- Petition again Reliance Jio
- Krishna Godavari Basin Gas issue
- Airplane grounding of RIL
- Criminal investigation in 2005
Opportunities for Reliance
Some of the main available opportunities in the swot analysis of Reliance are as follows;
Alliance & Partnerships
Reliance Industries should consider developing partnerships and alliances with the world’s leading oil and gas, media, and retail organizations. It would help the company to expand its market share, business portfolio, and reputation.
Automotive Industry Growth
The Indian automobile industry has grown exponentially over the past few years. Tata Motors is manufacturing the whole vehicle locally from start to finish. It presents a lot of opportunities either to join hands with Tata Motors or work on joint venture projects. It would help the company to amplify its growth and profitability.
In order to avoid competition, Reliance Industries should consider buying out the small or weak competitors in various industries. It would help the company to get rid of the competition and achieve a market leadership position in the market.
Oil prices have increased significantly across the world after the pandemic crisis. It presents a lot of growth opportunities in the petroleum sector. Since Reliance is already operating its business in the petroleum sector; now the company should amplify its efforts.
Threats to Reliance
Some of the main potential threats in the swot analysis of Reliance are as follows;
Low purchasing power, inflation, and unemployment rate have caused the global economic recession. Resultantly, the sale of all the businesses has declined significantly.
Regulation against Oil
Various NGOs, environmentalist organizations, and government officials are criticizing the consumption of petroleum products. It is not good for the growth of the company, and the company should take steps towards renewable sources of energy to maintain its position in the market.
Conclusion: Reliance SWOT Analysis
After an in-depth study of the swot analysis of Reliance Industries Limited; we have realized that Reliance is a world’s leading organization. If you are learning about the business of Reliance Industries Limited, 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.