Contents
SWOT Analysis of Amul
About Amul
The name “Amul” comes from the Sanskrit word ‘Amulya’ which is ‘priceless.’ . The National Dairy Development Board (NDDB) was created in 1965 to spread the Amul brand’s successful model across India . Important leaders who helped Amul grow included Tribhuvandas Patel , Morarji Desai , Maniben Patel , and Verghese Kurien. In this blog we did a detailed swot analysis of Amul and You will be learning about the business model of The Amul , Swot analysis of Amul company which reveals strengths , weaknesses , Opportunities and threats to Amul .
The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the owner of the Amul brand . Amul is a famous and celebrated brand in India for its taste and quality dairy products and for helping both farmers and consumers. Amul was founded on December 19, 1946. The Amul brand is started to help dairy farmers who got cheated by retail milk traders who fix the price .
H. M. Dalaya came up with the innovative idea of making Skimmed milk powder from buffalo milk. This was a big technological breakthrough that improved India’s dairy industry. Today, more than 3.7 million farmers benefit from Amul’s cooperative business model.
Quick information of Amul
| Details | Information |
| Founded | December 19, 1946 |
| Location | Anand, Gujarat, India |
| Ownership | Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) |
| Number of Producers | 3.6 million milk producers |
| Annual Sales Turnover | Rs 39,248 crores in 2021 (approximately $5.2 billion USD) |
| Global Ranking | Eighth biggest dairy company in the world |
| Key Figures | Tribhuvandas K. Patel, Verghese Kurien, H. M. Dalaya |
| Products | Milk, butter, cheese, ghee, paneer, chocolates, ice cream, and various other dairy products |
| Exports | To countries including the US, Singapore, Japan, the Philippines, China, Australia, and Gulf countries |
Competitors of Amul
- Kwality Walls
- Baskin Robbins
- Havmor
- Vadilal
- Dinshaws
- Mother Dairy
- Arun Ice Cream
Why These companies are top competitors for Amul :
- They offer similar dairy and food products
- Many are large, well-established brands with strong brand recognition
- Some have a significant presence in Amul’s home market of Gujarat, like Havmor
- The competitors are leveraging factors like innovative products, 100% cow milk ingredients, wide product ranges, strong distribution and marketing to gain market share from Amul
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swot analysis of amul company – strengths
Improving Technology :
Amul is investing a lot in new and adaptive technologies to make production faster and reduce expenses . Amul also invests in Research and Development for developing new marketing strategies and product labeling to grab more customers . Amul saw a huge growth in its initial few decades and in this technological era amul also started using technological stuff like GPS to track transportation trucks , inbuilt cooling fridge in trucks and large warehouses to store their production at certain temperature to make it hygienic .
Large Scale Operations :
Amul is the largest food product company in India , with an annual turnover of US$ 7.2 billion ( approximately ₹58,000 crores ) . It collects milk from 3.6 million farmers in 18,565 villages. Every year , it handles 10.3 million metric tons of milk. Amul works with 18 different Union groups , and together they run 98 dairy factories all over India. These factories can process 41 million liters of milk each day and dry 1,100 metric tons of milk daily to make skimmed milk powder . Amul has been making and selling various dairy products in India and other countries since 1946.
Wide Product Range:
Amul offers a diverse range of dairy products, including milk, butter, cheese, ghee, paneer, chocolates, and ice cream
Brand Mascot :
Amul is an old, very famous and trusted dairy brand in India and has been around for over 75 years . It is one of the most well-known and valuable brands in the country. You might have seen the “Amul girl” in their ads. She is one of the oldest and most recognizable brand mascots in India and is still used in their ads today.
No other milk or dairy brand in India has the same reputation or value as Amul.
Global Presence :
Amul exports its products to many countries around the world. Some of these countries include the US, Singapore, Japan, the Philippines, China, Australia, and the Gulf countries.
swot analysis of amul company – Weaknesses
High Competition :
As every company or organization , Amul is also facing heavy competition from several brands in which some of them are well established , offering similar products at low price , better labeling , etc . To survive in this scenario Amul brand should popularize its non- dairy products such as Tru juices , organic jams , honey , and juices under the Amul Organic brand .
Dependent only on milk supply :
Amul is purely dependent on milk supply from 3 million farmers . It is a red flag for the brand as any disturbance in the supply arises that brings great loss to the company .
Legal Controversies :
Recently , Amul got into legal trouble because they advertised their products by putting down their competitors. This caused Hindustan Unilever to file a lawsuit against Amul in the Bombay High Court.
No scope for non – dairy amul products :
Non – dairy products of Amul like Tru juices , organic jams , honey , and juices under the Amul Organic brand are not popular and don’t have much scope for making profits from these products .
swot analysis of amul company – Opportunities
Innovative Product Development :
Amul can use its technological capabilities and R&D to develop new and innovative dairy products that attract changing consumer preferences . For Example : Creating a flavored curd or using organic fruits in their ice creams , etc .
Demand for Dairy Products :
The demand for dairy products is increasing day by day globally , providing Amul with opportunities to expand its market and explore new markets .
Strategic Partnership :
Amul can form strategic partnerships with trending Ecommerce platforms like zepto , blinkit or other dairy organizations such as country delight to expand its reach and capabilities .
Global Expansion :
Amul can expand its market to untapped global areas by making strategic marketing plans and creating premium products which attract Europeans and other parts of the world . Amul already has its presence in the US, Singapore, Japan, the Philippines, China, Australia, and the Gulf countries.
Non-Dairy Segments :
Using the Brand value of Amul , It can improve its non – dairy products by making a different marketing approach like creating another brand mascot of amul girl to non – dairy products .
swot analysis of amul company – Threats
Market saturation :
Dairy market is getting saturated day by day as there are many competitors to Amul . The Competitors also produce similar products and they are well established and settled in the market with their brand value . As dairy products are available to everyone by different brands It will be a threat to Amul to survive in the market . It should make strategies to keep its customers from losing to its competitors .
Supply Chain Disruptions :
A supply chain is like a pathway that products take from the factory to your home. Sometimes , this pathway can get blocked or have problems , like bad weather or accidents . These problems are called supply chain disruptions.
To avoid these problems, Amul should not rely on just one supplier. Instead, they should get supplies from different places. This way , if one supplier fails , the company can still get from another supplier .
Economic Downturns :
An economic downturn is when the economy is not doing well , and people don’t have as much money to spend. When this happens , people spend less money on things like dairy products , which can affect Amul’s sales and how much money they make . For Example : Inflation , Pandemic , etc .
So, during tough economic times, Amul might sell fewer dairy products and make less money.
Regulatory Changes :
Every company or brand faces this problem of regulatory changes . When the government changes its rules or policies , it can affect the sales of Amul Products . For Example : new laws might make it harder or more expensive for Amul to produce and sell its products. These changes can impact Amul’s operations and how much profit they make .
Price Volatility of Key Ingredients :
The prices of important ingredients, like milk, can go up and down a lot. Since milk is the main ingredient in Amul Butter, these price changes can affect how much it costs to make butter. If milk prices increase , it increases the cost of butter , which can decrease its profits .
Negative Online Reviews :
Negative online reviews can be a big problem for any business , big or small. When customers leave bad reviews , it can hurt the company’s reputation.
To fix this , Amul should respond quickly and find solutions to make unhappy customers satisfied . Also , Amul should talk openly and honestly with customers to address any negative feelings or misunderstandings about dairy products . This can help improve how people see the company and make customers happier .
Conclusion
Amul is a top brand in India’s dairy industry, known for its tasty and high-quality products. It has grown by supporting farmers and offering a wide range of dairy items. With strong market leadership, advanced technology, a large operation, and a global presence, Amul has many strengths.
However, Amul also faces problems like heavy competition , dependency on milk supply, legal controversies , and limited popularity of its non-dairy products . These weaknesses highlight areas where Amul needs improvement .
Amul has many opportunities to grow, such as developing new products, expanding globally, forming partnerships, and improving its non-dairy items . It also faces several threats , including market saturation , supply chain disruptions , economic inflation , regulatory changes , price fluctuations of main ingredients , and negative online reviews. By effectively addressing these issues, Amul can protect its strong brand reputation and continue to meet customer needs.
By using its strengths , addressing weaknesses , taking advantage of opportunities , and managing threats , Amul can keep growing in the ever-changing dairy industry.
FAQs
1 . What is the Swot analysis of Amul company in India ?
SWOT Analysis of Amul – Strengths :
- Improving Technology
- Large Scale Operations
- Wide Product Range
- Brand Mascot
- Global Presence
SWOT Analysis of Amul – Weaknesses :
- High Competition
- Dependent Only on Milk Supply
- Legal Controversies
- No Scope for Non-Dairy Amul Products
SWOT Analysis of Amul – Opportunities :
- Innovative Product Development
- Demand for Dairy Products
- Strategic Partnership
- Global Expansion
- Non-Dairy Segments
SWOT Analysis of Amul – Threats :
- Market Saturation
- Supply Chain Disruptions
- Economic Downturns
- Regulatory Changes
- Price Volatility of Key Ingredients
- Negative Online Review
2 . What are the weaknesses of Amul company ?
SWOT Analysis of Amul – Weaknesses :
- High Competition
- Dependent Only on Milk Supply
- Legal Controversies
- No Scope for Non-Dairy Amul Products
3 . Who are the top competitors of Amul company ?
Top Competitors of Amul are :
- Kwality Walls
- Baskin Robbins
- Havmor
- Vadilal
- Dinshaws
- Mother Dairy
- Arun Ice Cream
4 . Who is the founder of Amul company ?
Tribhuvandas Patel is the founder of Amul .
5 . What are the non – dairy products of Amul ?
Tru juices , Amul Organics , Amul ice creams , Amul chocolates are the main non – dairy products of Amul .
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