ASIAN PAINTS

SWOT ANALYSIS

HAR GHAR KUCH KEHTA HAI

SUBJECT-MANAGEMENT PRACTICES AND

ORGANISATIONAL BEHAVIOUR (MGN 502)

INTRODUCTION
ASIAN PAINTS WAS FOUNDED ON 1 FEBRUARY 1942 BY CHAMPAKLAL CHOKSEY.CHIMANLAL CHOKSI, SURYAKANT DANI AND ARVIND VAKIL AT A GARAGE ON FORAS ROAD, IN MUMBAI. THEY CHOOSE A NAME LOCAL TELEPHONE DIRECTORY AND CALLED IT ASIAN OIL AND PAINT COMPANY, HOWEVER BY 1945; THE COMPANY REACHED A TURNOVER OF RS.3.5 LAKH. ASIAN PAINTS IS INDIAS LARGEST PAINT COMPANY AND ASIAS THIRD LARGEST PAINT COMPANY. MAJOR PRODUCTS AND SERVICES THAT ASIAN PAINTS DEALS IN: ASIAN PAINTS MANUFACTURES AND MARKETS INDUSTRIAL AND DECORATIVE COATINGS.THE COMPANYS KEY PRODUCTS AND BRANDS INCLUDES THE FOLLOWING:PRODUCTS: DECORATIVE PAINTS: INTERIOR WALL PAINTS, EXTERIOR WALL PAINTS, WOOD SURFACE PAINTS, METALS SURFACE PAINTS. INDUSTRIAL COATINGS: PROTECTIVE COATING, FLOOR COATING, ROAD MARKINGS. AUTOMOTIVE: BRANDS: ACE & APEX, APCOLITE, APEX ULTIMA, ASIAN PAINTS, COLOR NEXT, PREMIUM GLOSS ENAMEL, ROYALE, ROYALE PLAY, TOUCHWOOD, TRACTOR EMULSION, UTSAV. SWOT ANALYSIS OF ASIAN PAINTS

SWOT ANALYSIS IS A BASIC, STRAIGHT FORWARD MODEL THAT PROVIDES DIRECTION AND SERVES AS A BASIS FOR THE DEVELOPMENT OF MARKETING PLANS. SWOT ANALYSIS IS AN IMPORTANT STEP IN PLANNING AND ITS VALUE IS OFTEN UNDERESTIMATED DESPITE THE SIMPLICITY IN CREATION.SWOT ANALYSIS IS DONE FOR A COMPANY TO KNOW ITS STRENGTH, WEAKNESSES, OPPURTUNITIES AND THREATS. SWOT ANALYSIS OF ASIAN PAINTS IS DONE SO THAT POSITION OF ASIAN PAINTS CAN BE PICTURISED TRULY.

STRENGTHS:
1. MARKET LEADERS WITH 35% MARKET SHARE IN THE ORGANISED SECTOR, THE CLOSEST COMPETITOR DOESNT HAVE EVEN HALF OF ITS SHARE. 2. THEY OPERATE IN 17 COUNTRIES AND HAVE 24 MANUFACTURING FACILITIES PROVIDING SERVICE TO 65 COUNTRIES IN THE WORLD. 3. MOST RENOWNED BRAND IN INDIAN PAINT INDUSTRY & ITS STRONG CUSTOMER FOCUS AND INNOVATIVE SPIRIT HAS MADE IT MARKET LEADER SINCE 1968. 4. THE COMPANY HAS STRONG FINANCIALS. 5. UNLIKE ITS COMPETITORS WHO CONCENTRATE ONLY IN URBAN AREAS, IT IS FOUND EVERYWHERE,IT HAS A COUNTRY WIDE DISTRIBUTION. 6. ITS PRICING STRATEGY IS ORIENTED TO MIDDLE/LOWER END CUSTOMERS. 7. HIGH CALIBER HUMAN RESOURCE EMPLOYS MAXIMUM NO. OF MBAS AS A PROPORTION TO TOTAL NO. OF EMPLOYEES. 8. ASIAN PAINTS HAS STRONG INTERNATIONAL PRESENCE WITH ITS 4 SUBSIDIARIES: BERGER INTERNATIONAL LTD., APCO COATINGS, SCIB PAINTS AND TAUBMANS. 9. THEY HAVE MAINTAINED THEIR BRAND NAME AND INCREASED AWARENESS BY ITS UNIQUE WAYS OF ADVERTISING WITH SAIF ALI KHAN.

10.ASIAN PAINTS INDUSTRIAL COATINGS LIMITED HAS BEEN SET UP TO THE POWER COATINGS MARKET WHICH IS ONE OF THE FASTEST GROWING SEGMENTS IN THE INDUSTRIAL COATINGS MARKET. 11. THEIR RISK COUNCIL MEETS ON A PERIODIC BASIS TO REVIEW RISK MANAGEMENT FRAMEWORK AND DISCUSS ON RISK MITIGATION PLANS.

WEAKNESSES:
1. IN DECORATIVE PAINTS INDUSTRY, CUSTOMERS PERCEPTIONS CHANGE VERY FAST AND PRODUCTS MAY BECOME OBSOLETE WITH CHANGE IN TRENDS, HENCE PRODUCTION PLANNING AND INVENTORY PROBLEM. 2. INNOVATION IN DEVELOPING NEW PRODUCTS IS ADEQUATE. 3. SEASONAL DEMAND AND HENCE IN OFF SEASONS IT LEADS TO CASH FLOW PROBLEMS. 4. EVER EXPANDING PRODUCT MIX THROWS SOME STRAIN ON INVENTORY MANAGEMENT. 5. ASIAN PAINTS DOESNT HAVE TECHNOLOGY TIE-UPS WITH MANUFACTURERS ABROAD. 6. IT HAS A LIMITED MARKET SHARE IN INDUSTRIAL PAINTS SEGMENT WITH KANSAI NEROLAC AND AKZONOBEL GIVING STIFF COMPETITION.

OPPORTUNITIES:
1. THERE IS A GOOD SCOPE FOR GROWTH ESPECIALLY IN INDUSTRIAL PAINTS CATEGORY. 2. NEEDS TO HAVE MORE FOCUS ON AUTOMOBILE INDUSTRY IN INDUSTRIAL PAINTS SEGMENT. 3. SHOULD TRY TO INCREASE ITS MARKET SHARE WITH AN EXTREME GOOD QUALITY OF INNOVATIONS. 4. ITS A BIG AND INTERNATIONAL STANDARD PAINT COMPANY, SHOULD LOOK FOR MORE OPPORTUNITIES IN ABROAD. 5. THE R&D CAN GEAR TO OFFER REAL TIME SOLUTIONS AND CONSTANTLY UPGRADE TO MEET THE NEW EMERGING NEEDS OF THEIR CUSTOMERS.

THREATS:
1. RAW MATERIAL SCARCITY, VOLATALITY IN PRICES. 2. GOVERNMENT RULES AND REGULATIONS REGARDING THE QUALITY OF PRODUCTS AND MANUFACTURING FACILITIES ARE GIVEN MORE EMPHASIS. 3. GROWTH PRONE TO SLOW DOWN EFFECTS. 4. COMPETITORS HAVE GONE IN FOR HI-TECH WITH INSTA-COLOR SPOT MIXING,SO ASIAN PAINTS SHOULD ALSO LOOK FOR MORE TECHNOLOGICAL ADVANCEMENT. 5. DOMINATION OF FEW FOREIGN COMPANIES. 6. AUTOMATED PAINT BLENDING IN RETAIL POINTS IS ALREADY THERE.