SWOT Analysis Of Reliance Industries

Reliance Industries is an Indian-based multinational company headquartered in Mumbai, India, founded by Late Dhirubhai Ambani, the famous entrepreneur who started with a clear vision.

Reliance Industries is one among few companies which have the most diversified business like petrochemicals, energy, retail, natural gas, media, and telecom. Reliance operates in over 125 countries across the world. Reliance industries telecommunications company Reliance Jio has a superb 4G infrastructure throughout the country and has given Reliance an edge over its competitors in data connectivity and also voice 4G.

RIL is one of the most profitable publicly listed companies in India and Reliance Industries ranks among the top 100 world’s biggest corporations 2020 in Fortune 500. As per the latest reports Reliance industries is planning to enter the Green energy business by investing $75 billion by 2025. RIL is also the eighth largest employer in India with nearly 195,000 employees On 10 September 2020 and Also, Reliance Industries is one of the most profitable companies In India. even though it is India’s largest company it has its pros and cons. now let’s see the SWOT Analysis of Reliance Industries.

SWOT Analysis Of Reliance Industries

The Reliance industries SWOT will give us a clear view of the company’s structural and operational aspects. So the SWOT of Reliance Industries is explained as follows

The Strengths Of Reliance Industries

Strengths Of Reliance Industries affect the company by Internal things Like the Company’s decision.

Company With Low Debt: As we already knew that in 2020 when the world experienced the darkest moment ever Reliance Industries had sunlight with huge funding from top companies like Google, Facebook, Intel, and So on with a total investment of over Rs 1.8 Lakh crore. which helped the company to pay off its debt.

Strong Promoter: Entire earth knows Tesla just because of its superman promoter Elon musk for his crazy things likewise Reliance Industries is known for Mukesh Ambani for his daring risky steps and his love for the country.

Strong Brand: RIL is the first Indian private company to be featured in Fortune 500 Global. Reliance industries are a fundamentally stronger company in whatever the business it does. Ex: Jio acquired 400 Million subscribers in just 5 years of its operation.

Significant Market Share: Reliance industries hold the significant market share across the businesses it does. for the telecom sector, Jio is the king, for the retail sector Reliance retail is king and the list goes on.

Manufacturing Advantage: Reliance industries own the world’s largest refinery in Jamnagar of over 10,000 acres of land and also it has the advantage of Manufacturing other categories of products on a large scale.

Related Reading: SWOT Analysis of Adidas

The Weakness Of Reliance Industries

Opportunities Of Reliance Industries affect the company by Internal things Like the Company’s decision.

Legal Actions: Reliance Industries is more vulnerable to legal action as it operates an oil company many social activists file a legal complaint against for environmental damages.

Politically Vulnerable: When farmers across the country started a national strike against the government for a new farmer bill in 2020 Reliance industries was targeted by them.

The decline in Productions: Reliance Industries’s major gas production comes from two of its major plants, one is the KG-D6 project and the other is Tapti Fields which is decreasing due to various natural and operational challenges. A decrease in production affects its supply chain and operational margins.

Lack of Market Penetration: As of now Reliance Industries is focusing more on Indian markets only which should be changed to grow more it should expand its Jio across the world.

The Opportunities Of Reliance Industries

Opportunities Of Reliance Industries affect the company by External things Like Government, Other Businesses and People.

Acquisition: Reliance industries can buy out the startups or companies which is near to their products like recently reliance industries acquired Justdial to integrate with JioMart to increase its footprints in the Retail sector.

Related Reading: Why Companies Acquire Other Companies?

Partnerships: RIL should Partner with global oil companies and tech companies which can increase its exposure in international markets also.

EV Industry: RIL can manufacture chemicals used in battery which is easy for them because they are already in the petrochemical sector.

Improving Jio: RIL Should focus on bug fixes and improvements to avoid frequent errors which are reported across the country.

CBM as unconventional natural gas: CBM is a natural gas extracted from coal seams. RIL has two CBM blocks and is ready to exploit CBM as an unconventional natural gas resource.

New offerings in Reliance Jio: Reliance Jio has already become one of the largest telecom networks in the country. Reliance Jio needs to come up with new offerings and retention policies to retain the customers who might also leave Jio for another offering from another telecom giant.

The Threats Of Reliance Industries

Threats Of Reliance Industries affect the company by External things Like Government, Other Businesses and People.

Regulations: As governments are imposing stricter regulations and guidelines poses a major threat to its growth.

Competition: As of now, Airtel poses a major threat to Reliance Jio in the telecom sector, Adani groups enter in petrochemical business may affect the reliance industries’ petrochemicals business in the long term and Tata Groups is aggressively expanding its business like never before which can majorly affect the reliance industries growth as Tata is a most reputed company in India.

Climate Change: As of today Climate change is said to be one major calamity ever human witnessed. Reliance industries can be majorly be affected due to their oil & petrochemical business where reliance industries earn over 50% of their total revenue annually.

Recommendation for Reliance Industries

The SWOT analysis of Reliance Industries highlights where the brand currently stands and the threats it is facing in this era. Following the analysis we have few suggestions for Reliance Industries that were recommended by Us:

• Reliance Industries needs to concentrate more on the technology sector and make sure it brings a major chunk of revenue.
• Reliance industries must take steps to transition into green energy companies at a bullet speed rate else they will lose the game.
• Reliance Industries Should stay away from unnecessary political activities which affect the company for no reason.