Kingfisher Beer SWOT Analysis Analyzes, Kingfisher is famous for its extensive range of beers since 1857 under the umbrella of the United Breweries in Bengaluru’s UB City. Apart from internationally-acclaimed beers and a discontinued airline service, Kingfisher is widely known in the glam world internationally for the annual Kingfisher Bikini Calendar since 2003.
Did You Know? In 2018-19, Kingfisher Ultra Beer sold over 5 million cases, the company said in its annual report.
Launched in 1978, by United Breweries Group in India where Kingfisher is the largest selling beer accounting for some one in every three bottles of beer sold. In the UK, where it has long been marketed to Indian Restaurants, Kingfisher is brewed under license by Heineken.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Kingfisher Beer.
Kingfisher Beer At A Glance – Kingfisher Beer SWOT Analysis
Company: United Breweries Group
Founders: Vittal Mallya
Year of establishment: 1857
CEO: Vijay Mallya
Headquarters: UB City (headquarters) in Bangalore
Employees (Dec 2020): –
Ticker Symbol: KGFHF
Annual Revenue (Dec 2020): INR5,600 Crores
Profit net income (Dec 2020): INR400 Crores
Products & Services: Kingfisher Bohemia | Zingaro | UB Export | London Pilsner | Kalyani Black Label | Bullet | Peacock Cider | Bintang Beer | Pearl River Beer
Company Website: kingfisherbeer.co.uk
Top Kingfisher Beer Competitors
Competitors: Bira 91 | Simba | White Rhino
Kingfisher Beer SWOT Analysis – SWOT Analysis Of Kingfisher Beer
SWOT Analysis Of Kingfisher Beer analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Kingfisher Beer SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Kingfisher Beer SWOT Analysis. Below Is The Detailed SWOT Analysis Of Kingfisher Beer.
Kingfisher Beer Strengths – Kingfisher Beer SWOT Analysis
- A strong free cash flow Kingfisher Plc has strong free cash flows, which allow the company with the funds needed to allow the company to grow into new ventures.
- A track record of success in merging complementary firms via mergers and acquisitions. It has successfully integrated a number of technology firms over the past few years in order to simplify its operations and create an efficient supply chain.
- High Returns on Capital Investment Good Returns on Capital Expenditure Kingfisher Plc is relatively successful in the execution of new initiatives and has had high returns on capital expenditure through the development of fresh revenue streams.
- Proven track record of creating new products and products that are innovative in their design.
- Strong distribution network the years, Kingfisher Plc has built a reliable distribution system that allows it to be accessed by the majority of its potential market.
- A strong dealer community has developed a culture among dealers and distributors where dealers do not just promote the their company’s products, but also invest in educating the sales staff to show the client how to get the most value from the product.
- Outstanding performance in new Markets Excellent Performance in New Markets Kingfisher Plc has built expertise in entering new markets and making a success of these markets. The growth has allowed the company create a new revenue streams and diversify its economic risk of the markets that it operates in.
- Automating processes has made it possible to maintain the same quality of Kingfisher Plc products and has helped the company expand and reduce depending on the needs on the market.
Kingfisher Beer Weaknesses – Kingfisher Beer SWOT Analysis
- The structure of the organization is suitable for the current business model, thereby limiting expansion of adjacent product categories.
- There are areas of inconsistency in the products offered by the company. The lack of variety could provide a competitor with a position on the market.
- More investment is needed in the development of new technologies. Due to the size of the expansion and the various geographies that the company plans for expansion into Kingfisher Plc needs to invest more in technology that will allow it to integrate processes across all of its operations. The investment currently in technology is not on level with the goals of the business.
- Days inventory is higher compared to competitors, which makes the company increase its capital investment into the channel. This can affect the growth over time of Kingfisher Plc.
- The company has had limited success outside of its the core business. Kingfisher Plc is one of the top companies in its industry , it has been challenged in expanding into other product lines within its current style of operation.
- The ratio of profitability and Net Contribution percentage for Kingfisher Plc are below the industry standard.
- The company is not in a position to meet the challenges presented by the newcomers in the market and has been losing market share in specific categories. Kingfisher Plc must develop an internal feedback mechanisms directly from the sales staff on the ground to address these issues.
Kingfisher Beer Opportunities – Kingfisher Beer SWOT Analysis
- The core competencies of an organization can be successful in other product areas. One example is the case of GE healthcare research has helped in developing better oil drilling equipment.
- The economic recovery and the increase in consumer spending, following years of economic recession and a slow growth within the sector, presents an excellent opportunity to Kingfisher Plc to capture new customers and grow the market shares of its competitors.
- The latest technology offers an opportunity for Kingfisher Plc to practices differentiated pricing strategies in the new market. It will help the firm to retain its loyal customers by providing excellent service, and also attract new customers with other attractive offerings.
- Lowering the cost of transportation as a result of lower shipping costs can lower the price of the products of Kingfisher Plc which can provide an opportunity to the business – either to improve its profit margins or transfer the advantages to customers in order to increase market share.
- New customers are coming from the online channels – In the last couple of years, the company has invested a huge amounts of money in the platform online. This investment has led to the opening of a new sales channels to Kingfisher Plc. In the coming years, the company will be able to profit from this opportunity by understanding its clients better and addressing their needs through large data analysis.
- The new tax policy could dramatically alter the method of business, and could create new opportunities for established players like Kingfisher Plc to increase its profit.
- The opening of new markets due to a government agreement the introduction of a new technology standard and the government’s freedom of trade agreements has given Kingfisher Plc an opportunity to join a new market that is emerging.
- A steady flow of cash provides the opportunity to invest in other product segments. When there is more money in the bank the company is able to invest in the latest technologies, as well as new product segments. This could open up a door of opportunities to Kingfisher Plc in other product segments.
Kingfisher Beer Threats – Kingfisher Beer SWOT Analysis
- Stable profitability – Intense competition has led to an increase in the number of players in the market over the these two years. This has put pressure not just on profit but also overall sales.
- The laws governing liability in different countries differ in each country. Kingfisher Plc may be exposed to liability claims arising from a changes in the policies of these markets.
- The company could be sued in a variety of markets, due to the different laws and the constant fluctuations in the quality of products sold in those markets.
- The growing trend towards isolationism in the American economy could trigger similar responses from other governments which could negatively affect international sales.
- The changing buying habits of consumers from the online shopping could pose an attack on the current physical infrastructure-driven Supply Chain model.
- The latest technologies developed by the company’s competitor or market disruptor could pose a major risk to the industry in the near to medium-term future.
- Pay increases, especially those that exceed like $15 an hour and the rising costs in China can put a significant impact on the profits of Kingfisher Plc.
- A rising demand for raw materials can be danger to Kingfisher Plc profitability.
This is the SWOT report that Kingfisher Beer has done. Please let us know if you have additional suggestions to add.
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