Reckitt Benckiser Group or simple RB is a British multinational consumer goods manufacturer. The headquarter of RB is in England. It is a leading manufacturer of branded products in personal care and household cleaning. It produces hygiene, health, and home products.
The brands of RB include the antiseptic brand Dettol, French’s Mustard, the sore throat medicine Strepsils, the Veet (hair remover), Calgon, Air Wick(the air freshener), Clearasil, Durex, Cillit Bang, Lysol, Mycil and Vanish.
Reckitt Benckiser has its operations functional in around 60 countries. The products are sold in almost 200 countries.
SWOT Analysis of Reckitt Benckiser
The analysis elaborates the strengths, weakness of and opportunities and threats for the company. This study can also be used for the development of Reckitt Benckiser’s competitive advantages.
Internal Strategic Analysis of Reckitt Benckiser: The internal strategic analysis discusses the internal environment of the company. On these things, the company has direct control. These are known as the Strengths and Weaknesses of the company.
The Strengths of Reckitt Benckiser
Strong Goodwill – RB has strong Goodwill of offering health products to the middle and upper-class people.
Economies of Scale – When it is about the production costs, RD achieved economies of scale in producing its products.
Distribution Network – it is efficient. It distributes its products to retail levels such as local shops.
Entrepreneurial Ability – RD gives its employees entrepreneurial freedom by which it ensures innovations in product offerings.
Well, Diversified Portfolio – The well-diversified portfolio of Reckitt Benckiser provides the way of stabilized earning.
Reputation on fulfilling Social responsibility – Has a strong reputation of sharing profit with those people who help to improve children’s health.
Strategies – of choosing the right people and right culture, focus on its specific brands, target markets etc.
Skilled Workforce – Reckitt Benckiser has a skilled workforce of about
Strong Products in the product portfolio – It has the oldest germ killers in its portfolio; Dettol is the oldest germ killer existing in the market. It is in the market since 1936.
The Weaknesses of Reckitt Benckiser
High Price – A high price always attracts fewer customers. However, the target customers are very much different from that of others. But when compared to the competitors, the product price is high.
Lower Profit Margin – Profit margin gives a company to attract new investors to the company. It opens an opportunity for company expansion. The profit margin of the company is still low; therefore, makes a barrier to expansion.
External Strategic Analysis of Reckitt Benckiser: The external strategic analysis elaborates the external environment of the company over which it does not have a direct control.
The Opportunities for Reckitt Benckiser
Improvement of R&D – investment in the R&D department can increase the possibility of offering innovative products and may increasing profit as well.
Focus more on selling products in Developed countries – as the developed countries have a low unemployment rate and the purchasing power of the people is high, it can earn more profit in those countries.
Globalization – given the opportunities to be functional in more than 60 countries and the opportunities are increasing because of the functionality of globalization. The revenue is increasing in Europe, North America, Australia and New Zealand.
Developing countries – Reckitt Benckiser has big opportunities to grow its sales in developing countries such as Bangladesh, India, Srilanka etc.
Conducting more Acquisition & Merger – by this, it can increase its size in future.
Entering New Markets – Entering new markets will increase the profit margin.
The Threats for Reckitt Benckiser
Market Regulations – healthcare products are highly regulated by the government
Trade Agreement – a trade agreement between countries may restrict the selling of its products and create a trade barrier.
Demands in Developing Countries – Demand is not stable in developing countries. It creates uncertainty and makes a barrier to earn stabilized earning from those countries.
Growth of similar companies in Developing countries – it reduces sales as the host countries are producing the same products.
High unemployment & Low Spending – as the developing countries employment is low and their spending capability is low as well, RB may experience low sales in those countries.
Changing of technologies frequently – it makes the existing technologies obsolete and may require more investment in future.
Growing Competition –competition in similar industries are increasing, the competitors are becoming much stronger.
Economic Problems in countries – if the developed countries experience economic downfall, it can experience a huge fall in sales as the sales are heavily dependent on developed countries.
Bad Reputation – Recently, a bad incident in South Korea gave Reckitt Benckiser very bad reputation. South Korean executive of RB jailed for a link to deadly humidifier disinfectant. For this incident of the death of 100 people, a former Reckitt Benckiser executive was jailed for seven years.
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References:
- Reckitt Benckiser Wiki
- Household Cleaning
- Analysis of Reckitt_Benckiser
- SWOT of Dettol by Marketing
- An analysis from MBASKOOL
- Reckitt Benckiser Executive Jailed for 7 Years
Sheikh Faizul Haque is an internet entrepreneur and the founder of The Strategy Watch; Graduated from North South University with a double major in Accounting & Finance in Bangladesh.
With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis.