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Apollo Tyres Swot Analysis Essay

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SWOT analysis involves identifying business’s strengths and weaknesses, and examining the opportunities and threats which may affect the business. SWOT analysis aims to identify the key internal and external factors seen as important to achieving an objective.
Strengths are the characteristics of the business that give it an advantage over others. Apollo Tyres Ltd is a high-performance tire manufacturer headquartered in India with an extensive distribution network and manufacturing infrastructure. Their excellent geographical coverage across Asian, European and African markets. The company has over 4,000 dealerships in India, and over 900 in South Africa. In each of its markets the company operates through a vast network of branded, exclusive …show more content…

Apollo Tyres increase brand awareness since its sponsorship with Manchester United started with exposure to 69 markets. "We do regular brand ranking measures and they show from the sponsorship of Manchester United, we have been able to triple our brand awareness from a low base," Apollo Tyres chief marketing officer global, Marco Paracciani said. When the brand present in a football environment, whether it is in the stadium or in the sponsorship, company could build a lot of visibility with the brand. Apollo Tyres Limited have a three-year contract with Manchester United since 2013 and they are looking at extending that partnership. Apollo's sponsorship with Manchester United will also look to create 'go the distance' pitches in communities using recycled rubber to encourage healthy lifestyles among young people and also develop their football …show more content…

In order to have a control on the supply of raw material, Apollo tyres have also ventured into backward integration strategies in areas where they face problems with the supply of raw materials. It eradicate the dependence on supplier of raw materials. Backward integration is the buzzword in the tyre industry too, where nylon tyre cord accounts for nearly 35 per cent of the production costs. Both Apollo Tyres and its rival company Ceat, are setting up their own captive nylon cord plants. "The entire industry is in the clutches of just three or four tyre cord producers. And they have raised their prices by 26 per cent last year. We are left with no option but to set up our own captive unit," said Apollo Chairman Raunaq Singh. The company's proposed Rs 150-crore plant is meant wholly for captive use. Expected reduction in production costs: a substantial 15 per cent. Ceat is also setting up a Rs 150-crore subsidiary nylon tyre cord unit, half of whose production will be used for captive consumption. Besides the assured supply, There is an added bonus: no sales tax need be paid on the cord since it is to be used in-house. Backward integration can also provide companies with a degree of

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