{"id":3828,"date":"2018-11-28T09:00:42","date_gmt":"2018-11-28T03:30:42","guid":{"rendered":"http:\/\/capitalante.com\/?p=3828"},"modified":"2019-02-27T19:02:08","modified_gmt":"2019-02-27T13:32:08","slug":"swot-analysis-for-stocks-for-beginners","status":"publish","type":"post","link":"https:\/\/capitalante.com\/swot-analysis-for-stocks-for-beginners\/","title":{"rendered":"SWOT Analysis for Stocks for Beginners"},"content":{"rendered":"<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><g class=\"gr_ gr_226 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins doubleReplace replaceWithoutSep\" id=\"226\" data-gr-id=\"226\">SWOT<\/g> analysis is a procedure to evaluate a company\u2019s current financial health i.e., strength, weaknesses, opportunity <g class=\"gr_ gr_229 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"229\" data-gr-id=\"229\">and<\/g> threats. Specifically, SWOT analysis of a company or stock is the assessment of what the company can do and cannot do with its potentials, opportunities <g class=\"gr_ gr_230 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"230\" data-gr-id=\"230\">and<\/g> threats. In this column, we will see how to make <g class=\"gr_ gr_227 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"227\" data-gr-id=\"227\">SWOT<\/g> analysis of a company or stock and understand strength, weaknesses, opportunity <g class=\"gr_ gr_231 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"231\" data-gr-id=\"231\">and<\/g> threats of a company or stock in which you wish to invest your hard earned money.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\"><strong>S<\/strong> <strong>= Strength of a company<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">The strength of a company depends on various factors. In other words, a company may be strong or have strength <g class=\"gr_ gr_315 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"315\" data-gr-id=\"315\">on<\/g> different aspects. The company may enjoy a competitive advantage over the other companies due to the price of its product or good quality product or satisfactory customer service.\u00a0Let\u2019s understand this with an example. Whenever we talk or think about adhesive the first names come to our mind is Fevicol, Fevistick, Fevikwik, m-seal, Dr. Fixit etc. All these are brands of Pidilite industries. The products of Pidilite Industries possess <g class=\"gr_ gr_314 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"314\" data-gr-id=\"314\">a superior<\/g> quality. The company maintains a vast distribution network and superior customer service to establish this company as a market leader in the adhesive Sector or Industry.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Whenever we talk or think about Trolly or casual Bags, the first names come to our mind is Aristocrat, Skybags etc. All these are brands of VIP industries. This is the brand name of a company. So, you need to consider these factors before making an investment in a company.<\/span><\/p>\n<ul>\n<li>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>Whether the industry or company creates an entry barrier\u00a0<\/strong><\/span><\/h6>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">After selecting the company you need to <g class=\"gr_ gr_298 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"298\" data-gr-id=\"298\">analyse<\/g> the industry or sectors in which the specific company is in operation i.e., the growth potential of the industry or whether the industry or company creates an entry barrier. Let&#8217;s make it clear with an example. Suppose, you want to open a restaurant, then you can easily open a restaurant as it does not require the best skill level, large capital <g class=\"gr_ gr_296 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"296\" data-gr-id=\"296\">and<\/g> a vast infrastructure. But if you want to set up a company of adhesive industry or automobile industry or pharmaceutical industry, you will face a great entry barrier created by these industries. These industries, however, have created a massive barrier like large capital expenditure, exclusive distribution network, government regulations, patents, brands reorganizations and still counting.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">The harder the entry barrier is the better the advantage for the existing companies have. A mediocre company in a growth industry can generate a better return on equity than a good company in a dying industry. You have to watch out which industry is growing and likely to deliver a better return on equity.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\"><strong>W<\/strong><strong> = Weakness<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">The weakness of a company prevents the company from performing well. If a company has any weakness, it cannot deliver the desired results at the optimum level. Obviously, any company needs to or has to improve any kind of weaknesses to run its business successfully. High debt, inadequate supply chain, unsatisfactory customer service, insufficient service <g class=\"gr_ gr_261 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"261\" data-gr-id=\"261\">centres<\/g>, unproductive staff, low-quality products etc. are some weaknesses that a company may have.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\"><strong>O<\/strong><strong> = Opportunities<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Opportunity refers to the <g class=\"gr_ gr_307 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"307\" data-gr-id=\"307\">favourable<\/g> external or internal factors that an organization or a company can utilize to gain competitive advantage. Suppose, in the GST era, the rate of automobiles has reduced by 8%. So, the companies operating in this sector can make proper utilization of this fund. This reduction in tax burden will lead to a reduction in the price of those products or the companies may make use of this fund for expansion of the business. There may be other such situations which can be treated as opportunities for business gain. This opportunity can shift the business from <g class=\"gr_ gr_308 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"308\" data-gr-id=\"308\">unorganised<\/g> player to the <g class=\"gr_ gr_309 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"309\" data-gr-id=\"309\">organised<\/g> player. So, the big guns may treat this as a scope to gain a competitive advantage.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\"><strong>T<\/strong><strong> = Threats<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Threats are the problems or obstacles that may do any kind of harm generally lead to make a loss of the company or the organization. For example, many business news channels show whether the market will go upward depends on the forecast of monsoon report. A common retail investor cannot understand what the relationship is between a good monsoon and share market.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">The main workforce of our country is engaged in agriculture which accounts for more than 50% of employment. Apart from this 15% of the GDP comes from agriculture. The good and normal monsoon in a particular year increases the productivity and the farmers get fair price resulting in higher earnings. It improves their financial condition to some extent. Then, they can use the surplus money for products of their livelihood.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">A good monsoon helps to produce sufficient crops. This eases the availability of agricultural products in the market leading to reduce food inflation.\u00a0When <g class=\"gr_ gr_235 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"235\" data-gr-id=\"235\">the inflation<\/g> is low common men, as well as farmers, get the purchasing power for luxurious things.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">When productivity is normal, agricultural production decreases the manufacturing cost of packaged foods and other edible products.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Again, with <g class=\"gr_ gr_213 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"213\" data-gr-id=\"213\">the normal<\/g> production, the farmers can repay their loans owing to higher earnings. This reduces the NPA as they repay the loans in banks.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>In addition <g class=\"gr_ gr_330 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar replaceWithoutSep\" id=\"330\" data-gr-id=\"330\">to<\/g>,<\/strong><\/span><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">They will try to improve their lifestyle with various luxurious things like electronic gadgets, cosmetics, clothes, Motorcycles, bikes, cell phones, televisions <g class=\"gr_ gr_202 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"202\" data-gr-id=\"202\">and<\/g> other accessories.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">On the other hand, drought creates a completely opposite situation. All the businesses are related to agriculture directly or indirectly. So, drought affects the business of almost all the companies. Our economy is dependent on agriculture and agriculture is dependent on monsoon. So, less monsoon or draught affects the economy.<\/span><\/p>\n<p><a href=\"http:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/SWOT-Analysis-for-Stocks-for-Beginners.png\"><img loading=\"lazy\" src=\"http:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/SWOT-Analysis-for-Stocks-for-Beginners.png\" alt=\"SWOT Analysis for Stocks for Beginners\" width=\"800\" height=\"2000\" class=\"aligncenter size-full wp-image-4632\" srcset=\"https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/SWOT-Analysis-for-Stocks-for-Beginners.png 800w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/SWOT-Analysis-for-Stocks-for-Beginners-120x300.png 120w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/SWOT-Analysis-for-Stocks-for-Beginners-768x1920.png 768w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/SWOT-Analysis-for-Stocks-for-Beginners-410x1024.png 410w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #ff0000;\"><span style=\"color: #000000;\">Read also:<\/span>\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/s\/swot.asp\" ping=\"\/url?sa=t&amp;source=web&amp;rct=j&amp;url=https:\/\/www.investopedia.com\/terms\/s\/swot.asp&amp;ved=2ahUKEwjwpa7FgtneAhWTXCsKHYpsAjcQFjALegQICRAB\" style=\"color: #ff0000;\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.investopedia.com\/terms\/s\/swot.asp\" target=\"_blank\" style=\"color: #ff0000;\" rel=\"noopener noreferrer\">SWOT Analysis &#8211; Investopedia<\/a><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #ff0000;\"><span style=\"color: #000000;\">Read also:<\/span>\u00a0<a href=\"https:\/\/www.tradebrains.in\/swot-analysis-stocks\/\" ping=\"\/url?sa=t&amp;source=web&amp;rct=j&amp;url=https:\/\/www.tradebrains.in\/swot-analysis-stocks\/&amp;ved=2ahUKEwjwpa7FgtneAhWTXCsKHYpsAjcQFjAKegQIChAB\" style=\"color: #ff0000;\" target=\"_blank\" rel=\"noopener\"><\/a><a href=\"https:\/\/www.tradebrains.in\/swot-analysis-stocks\/\" target=\"_blank\" style=\"color: #ff0000;\" rel=\"noopener noreferrer\">SWOT Analysis for Stocks: A Simple Yet Effective Study Tool<\/a><\/span><\/li>\n<\/ul>\n<h6 style=\"text-align: center;\"><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">Let\u2019s make use of SWOT analysis on the company Maruti Suzuki.<\/span><\/h6>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\"><strong>S<\/strong><strong> = Strength of Maruti Suzuki<\/strong><\/span><\/h6>\n<ul>\n<li>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Financial strength<\/strong><\/span><\/h6>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki produces a vast variety of four wheeler cars ranging between 3 lakh to 15 lakh. All the cars produced by the company have a lower price in comparison to other cars produced by other companies. Maruti Suzuki offers the same features in a car at the lowest rate of cost.<\/span><\/p>\n<ul>\n<li>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Distribution Network<\/strong><\/span><\/h6>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki has a vast distribution network as well as service <g class=\"gr_ gr_288 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"288\" data-gr-id=\"288\">centres<\/g> all over the country. Other companies are not still able to set up so many showrooms and service <g class=\"gr_ gr_289 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"289\" data-gr-id=\"289\">centres<\/g>. Take any semi town or suburban area, you can easily find a service <g class=\"gr_ gr_290 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"290\" data-gr-id=\"290\">centre<\/g> as well as the showroom of Maruti Suzuki.<\/span><\/p>\n<ul>\n<li>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Brand reorganization<\/strong><\/span><\/h6>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki maintains <g class=\"gr_ gr_243 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"243\" data-gr-id=\"243\">a good<\/g> brand value. At present day Maruti Suzuki is the most recognized brand name in the Indian market. Now everyone understands four wheeler means it is Maruti.<\/span><\/p>\n<ul>\n<li>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Management of the company<\/strong><\/span><\/h6>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Management is the backbone of a company. <g class=\"gr_ gr_276 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"276\" data-gr-id=\"276\">A quality<\/g> management raises a company to the pick. It is a proven fact that <g class=\"gr_ gr_277 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"277\" data-gr-id=\"277\">a good<\/g> management in <g class=\"gr_ gr_281 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"281\" data-gr-id=\"281\">competitive<\/g> industry yields better returns than the worst management in a monopoly market. In order to access the strength of <g class=\"gr_ gr_279 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-del replaceWithoutSep\" id=\"279\" data-gr-id=\"279\">a management<\/g>, you need to consider the following aspects.<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">The persons who manage the company\u2019s business and the persons in key positions i.e., CEO, CFO, COO &amp; CIO.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">You need to examine the educational and employment backgrounds and previous employment records of the personnel. Suppose, the CEO previously worked in the coal sector and then he has shifted to technology. There are minimum chances that he will succeed. Ask yourself whether he is able to deliver success to the company.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">You should <g class=\"gr_ gr_204 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"204\" data-gr-id=\"204\">analyse<\/g> the management\u2019s style how the team operates the business, whether they promote the business as an open, transparent and flexible way.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">You need to <g class=\"gr_ gr_285 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"285\" data-gr-id=\"285\">analyse<\/g> when the management has taken charge of the company. Suppose, the management has been unchanged during the past 10 years. Then this long tenure of the management is a good indication. It means the management has been quite successful and has delivered the desired financial results such as compounded sales growth, compounded profit growth, a good return on equity. If you see a company is changing its management team frequently then you need to invest your money to somewhere else.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" src=\"http:\/\/capitalante.com\/wp-content\/uploads\/2018\/10\/2.jpg\" alt=\"SWOT Analysis for Stocks for Beginners\" width=\"960\" height=\"436\" class=\"aligncenter size-full wp-image-3484\" srcset=\"https:\/\/capitalante.com\/wp-content\/uploads\/2018\/10\/2.jpg 960w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/10\/2-300x136.jpg 300w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/10\/2-768x349.jpg 768w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Again, if you watch only restructuring of business or management of the company, you need to <g class=\"gr_ gr_252 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"252\" data-gr-id=\"252\">analyse<\/g> carefully. The restructuring is not always bad. There are several businesses which have turned around. You need to watch out the new management team\u2019s members, their past achievements. When a company hires management, it chooses wisely who can do well for the company\u2019s current financials.<\/span><\/p>\n<ul>\n<li>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\"><strong>Competitive advantage<\/strong><\/span><\/h6>\n<\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">A competitive advantage allows a company to produce quality service and better price for its customers. Then this competitive advantage accelerates the company\u2019s sales margin which increases profit margin than its competitors i.e., peer companies. When you invest your money in any company, you should choose such a company that has a sustainable competitive advantage in respect of cost structure, brand reorganization, corporate reorganization, product quality, distribution network <g class=\"gr_ gr_300 gr-alert gr_gramm gr_inline_cards gr_run_anim Punctuation only-ins replaceWithoutSep\" id=\"300\" data-gr-id=\"300\">and<\/g> superior customary support.\u00a0 The brand value or name of any company is in the billions of money. A portfolio of brand influences the sales and growth of the company in many ways. It is a competitive advantage than its peer companies.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Let\u2019s take the example of the four-wheeler company Maruti Suzuki. It is a notable fact that Maruti Suzuki offers four wheeler cars at affordable rates. No other company in the market can sell four\u00a0wheelers at such an affordable rate. So, the Maruti Suzuki enjoys a competitive advantage over other companies. Again, if you want to buy a four-wheeler, first of all, you check the showrooms and service <g class=\"gr_ gr_303 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"303\" data-gr-id=\"303\">centres<\/g> available of the concerned company. In this case, also Maruti Suzuki offers maximum showrooms cum service <g class=\"gr_ gr_304 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"304\" data-gr-id=\"304\">centres<\/g> across the country. On the other hand, if you see the other companies like Hyundai, Ford, BMW, Mercedes Benz etc. these companies cannot provide so many showrooms or service <g class=\"gr_ gr_305 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"305\" data-gr-id=\"305\">centres<\/g>. <\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">So, from the above discussion it is clear that if you intend to buy a car, you should see whether there is any service <g class=\"gr_ gr_251 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"251\" data-gr-id=\"251\">centre<\/g> in your locality. Here Maruti Suzuki gains a competitive advantage. The above-mentioned facilities separate Maruti Suzuki from other companies. A strong brand name, loyal customer base, a strong balance sheet, unique technology, reasonable product rate etc. are the strength of a company.<\/span><\/p>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\">W = Weakness of the Maruti Suzuki<\/span><\/h6>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Time and <g class=\"gr_ gr_220 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"220\" data-gr-id=\"220\">labour<\/g> intensive production process.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Limited capital for expansion.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Much inferior interior decoration of the vehicles as compared to the cars produced by some international companies like Hyundai, Volkswagen, Nissan etc.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">As society is being <g class=\"gr_ gr_221 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"221\" data-gr-id=\"221\">modernised<\/g>, people now have access to international brands. People now can choose among various other models available according to their budget.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Deteriorating relations between the management and the unions of <g class=\"gr_ gr_239 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"239\" data-gr-id=\"239\">labourers<\/g>. The frequent strikes by the <g class=\"gr_ gr_240 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling multiReplace\" id=\"240\" data-gr-id=\"240\">labourers<\/g> have affected the production and in turn sales. The agitations have also affected the goodwill and brand equity of the company.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">While many other companies are producing SUVs, Maruti Suzuki has not concentrated its business to this segment.<\/span><\/li>\n<\/ul>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\">O = Opportunity for Maruti Suzuki<\/span><\/h6>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Increases the number of stores to access more customers.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Continuously produces cars at a low price like Maruti Suzuki Omni, Maruti Suzuki Alto etc.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Buys new equipment to lower production cost and time.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">May go to equity financing to access more capital to expand the business.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki has launched its LPG version of Wagon R and it was a good move simultaneously.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki can initiate to launch vehicles that can run on electric. Electric vehicles are cheaper to run and can be a better option of petrol or diesel.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki has recently launched various SUVs to enter in the other segments. These models are giving tough competition to existing per companies and are expected to succeed.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Maruti Suzuki exports cars to American and UK markets. This will boost revenue as well as profit margin in the upcoming future.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Indian economy is growing rapidly. This will lead to increase per capita income which will enable people to buy four-wheelers.<\/span><\/li>\n<\/ul>\n<h6><span style=\"font-family: georgia, palatino, serif; font-size: 18pt; color: #0000ff;\">T = Threats for Maruti Suzuki<\/span><\/h6>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Many other big guns are giving more features in a four-wheeler at an affordable rate to gain a satisfactory competitive advantage.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Competition is increasing due to peer automobile companies. Many other companies have introduced different segments of the car industry to expand <g class=\"gr_ gr_217 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"217\" data-gr-id=\"217\">its<\/g> footsteps.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">People are now more financially literate. They check and verify many other four wheelers of various companies and then choose the best car with affordable rates according to their need.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Owing to the international brands like Volkswagen, Ford etc. major players like Maruti Suzuki, Hyundai, and Tata have lost their market in India year on year.<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Many Chinese companies are also planning to launch four-wheelers across various car segments like SUVs, light vehicle, luxurious cars. This will give tough competition to existing companies like Maruti Suzuki.<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a href=\"http:\/\/capitalante.com\/fundamental-analysis-of-stocks-step-by-step\/\" title=\"Fundamental Analysis of Stocks For Beginners\" rel=\"bookmark noopener noreferrer\" target=\"_blank\" style=\"color: #ff0000;\">Fundamental Analysis of Stocks For Beginners<\/a><\/span><\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a href=\"http:\/\/capitalante.com\/how-to-pick-best-stocks-step-by-step\/\" title=\"How to Pick Best Stocks for Consistent Returns\" rel=\"bookmark noopener noreferrer\" target=\"_blank\" style=\"color: #ff0000;\">How to Pick Best Stocks for Consistent Returns<\/a><\/span><\/span><\/p><\/blockquote>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">Have you any question regarding SWOT analysis of stocks? Feel free to comment so that we have a discussion. if you found this post helpful please share with your loved ones.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SWOT analysis is a procedure to evaluate a company\u2019s current financial health i.e., strength, weaknesses, opportunity and threats. Specifically, SWOT analysis of a company or stock is the assessment of what the company can do and cannot do with its &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"SWOT Analysis for Stocks for Beginners\" class=\"read-more button\" href=\"https:\/\/capitalante.com\/swot-analysis-for-stocks-for-beginners\/#more-3828\">Continue Reading<span class=\"screen-reader-text\">SWOT Analysis for Stocks for Beginners<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":3925,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts\/3828"}],"collection":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/comments?post=3828"}],"version-history":[{"count":0,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts\/3828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/media\/3925"}],"wp:attachment":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/media?parent=3828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/categories?post=3828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/tags?post=3828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}