ad here 2

swot analysis of meesho company – student friendly detailed study

By sahan kumar

Published on:

swot analysis of meesho company
ad here 3

Meesho is an Indian e-commerce company founded in 2015 by Vidit Aatrey and Sanjeev Barnwal . It helps small businesses and individuals to sell their products online through social media channels like WhatsApp and Facebook . Meesho has grown rapidly to become a major player in India’s e-commerce market .

A swot analysis of meesho company shows the important details of internal and external factors of the company which could affect the company’s revenue and reputation . Swot analysis shows strengths , weaknesses . opportunities and Threats . Strengths and Weaknesses are internal factors of the company and Opportunities and Threats are external factors which they need to address .

meesho company details 

Company NameMeesho
FoundedDecember 2015
FoundersVidit Aatrey and Sanjeev Barnwal
HeadquartersBengaluru, Karnataka, India
IndustryE-commerce and Social Commerce
Business ModelConnects suppliers with resellers who sell products via social media platforms like WhatsApp, Facebook, and Instagram.
Target AudienceSmall businesses , individual entrepreneurs , especially women
Product RangeClothing , accessories , home decor , kitchenware , electronics , beauty products , health items  and more.
Unique Selling PointIt allows anyone to start a business with no initial investment , focusing on social commerce.
Revenue ModelCommission based model : Meesho takes a small percentage (10-15%) from sales made by resellers.
User BaseOver 120M monthly active users and 2.6M resellers in India.
GrowthRapid growth since 2020 , with gradual increases in users and orders.
FundingBacked by major investors including Fidelity , Softbank and Meta , raising over $1.1 billion.
MissionTo democratize internet commerce and empower small businesses and individuals.
swot analysis of meesho company

competitors of meesho

swot analysis of meesho company
swot analysis of meesho company

Competitor NameDescription
Amazon IndiaA leading e-commerce platform offering a vast range of products, known for its extensive selection and fast delivery.
FlipkartOne of India’s largest e-commerce platforms, known for competitive pricing and a wide product catalog.
GlowRoadA social commerce platform like Meesho, allowing users to resell products through social media channels.
Shop101Another social commerce platform that helps  individuals to start online stores and resell products.
UdaanA B2B e-commerce platform helping small and medium sized businesses with manufacturers and wholesalers.
IndiamartAn online marketplace that connects buyers with suppliers, focusing on B2B transactions on various product categories.
swot analysis of meesho company

Swot analysis of meesho company in india

swot analysis of meesho company
swot analysis of meesho company

The Swot analysis of meesho company in india helps in finding  the loopholes of the company so that it can make use of its data to grow the company. Now, we will understand the SWOT analysis of Meesho in detail with deep data driven insights. The following swot analysis shows detailed analysis of meesho focused on its strengths , weaknesses , opportunities and threats . 

what are the strengths of meesho

1. Innovative Social Commerce Model :

Meesho uses a unique business model which leverages social media platforms like Instagram , Facebook , whatsapp , Quora , Telegram , etc to connect suppliers and resellers , making it easier for beginners such as housewives , students , etc  to start and grow their businesses with low investment .

2. Extensive Reseller Network :

Meesho has a large network of sellers present all over India, especially in smaller cities. This helps them reach more customers. This helps online buyers to choose a variety of products across the country . The more the sellers , the more products are available, which attracts even more buyers.

3. User-Friendly Platform :

The Meesho app and website are designed in a user friendly manner . This helps sellers and customers to navigate in buying and selling and makes everything clear . The simple interface makes it easy for sellers to list and manage their products  and customers to buy the product .

4. Loyalty Programs :

Meesho has a loyalty system that provides rewards to customers for buying products . For example , If a customer buys any product , he gets points for each purchase , these points can be accumulated and later redeemed by customers for buying products or deducting points for goods  .

5. National Presence :

Meesho operates in over 5,000 cities and towns across India. This national presence allows them to reach more audiences , including people in areas where traditional e-commerce may not be established well . By serving customers in each corner of India , Meesho can gradually occupy the Indian market .

what are the weaknesses of meesho

swot analysis of meesho company
swot analysis of meesho company

1. Low-Quality Products :

Meesho serves a wide variety of customers, especially in tier 2 and tier 3 cities and towns in India. These customers are looking for affordable products like clothes, home decorations, electronics, and health items. due to many local, unregistered suppliers , There are high chances of customers getting low quality products .

2. Dependence on Social Media :

Meesho highly depends on social media marketing in platforms such as Facebook and whatsapp . Any moderation policy or limitation of visibility of products can directly affect how well resellers can sell products through Meesho.

3. Limited International Presence :

Meesho is better established in India than in other countries . It has not expanded much in other countries . This limits its growth and makes it vulnerable to competition from international e-commerce companies.

4. Pickup Issues :

Some resellers face problems with product pickups . Sometimes , delivery people  do not come to collect items , leading to order cancellations. This can result in penalties for the resellers and create frustration. This gradually makes them earn less money .

5. Dependence on a Single Market :

As Meesho is well established in the India market . It has taken most of the market for people looking for affordable products . It has many untapped countries other than India .

what are the opportunities for meesho

swot analysis of meesho company
swot analysis of meesho company

1. Market Expansion :

Meesho has many untapped locations still in India but it also had good opportunities for it to grow as more people in India get access to the internet , especially in tier 2 and tier 3 cities and villages , Meesho can reach new customers who want to shop online.  This helps the company to expand into new locations and increase their revenue .

2. Support in Local Languages :

Providing the app and website in local regional languages , Meesho can help more people understand and use the platform . Many customers in India only speak regional languages other than English . By providing content in regional languages , Meesho can make its platform more  user friendly.

3. Collaborations :

Company can collaborate or partner with famous brands and social media influencers to offer the best products at best prices , which helps to attract more customers . Collaborations with popular brands can help Meesho improve its product offerings and attract a wider audience .

4. Revenue from ads :

Meesho had a large user base , everyday some millions of people visit their website and app . If Meesho integrates with monetization with ads such as google ads , Ad Exchanges and MI accounts , etc It can generate a large amount of income which further helps to reduce commission charged for sellers .

what are the threats to meesho

swot analysis of meesho company
swot analysis of meesho company

1. Regulatory Changes :

If the government introduces new laws regarding e-commerce and B2B businesses , Meesho will need to spend more money to comply with them . This could include costs for updating their systems , training staff or changing how they do business .  For example :  if there are stricter rules about product quality or data privacy , Meesho must adapt quickly to avoid penalties and fines .

2. Economic Downturns :

When the economy is not doing good , people tend to spend less income on clothing and other luxuries . Economic downturns such as Pandemic , Inflation, Natural calamity , etc  can lead to less sales for Meesho. Since Meesho sells many low priced products , a decrease in consumer spending can directly affect their sales and profits.

3. Heavy competition :

E-commerce B2B businesses are increasing day by day . New players such as Tata cliq , REsellme , shop101, etc and existing well established companies such as Amazon , Flipkart , Indiamart , etc are offering similar products with different prices. Customers have a large and variety of options to choose from . Meesho needs to provide additional benefits such as offers and discounts or new trends to survive in this heavy competition .

4. Cybersecurity Risks :

Online shopping companies like meesho should always provide good security to customers’ data and company confidential data . If any threat to this data can lead to serious problems and can decrease trust over meesho . To prevent this, Meesho must invest in strong cybersecurity measures to protect sensitive information and maintain customer confidence.

5. Dependence on Indian Market :

If social media platforms change their rules or algorithms, it could limit how effectively Meesho’s resellers can reach customers. For instance, if a social media platform decides to reduce the visibility of product posts, it could lead to fewer sales for Meesho. 

Conclusion 

Meesho has grown quickly by using a unique business model that allows people to sell products through social media platforms like WhatsApp and Facebook . swot analysis of meesho company shows Its strengths include a user-friendly app and websites , a large network of sellers and a strong presence in tier 2 and tier 3 cities and towns across India . These factors help the company attract many customers , especially from smaller towns. However, Meesho faces challenges like low quality products from some unregistered sellers and a highly depended on social media for its sales.

Despite these weaknesses , Meesho has many opportunities for growth . It can expand to more regions in India and make the platform more accessible by offering local regional language support and collaborating with well known brands . However, it also faces threats from competitors like Amazon and Flipkart and it must be prepared for changes in government laws regarding ecommerce and B2B Businesses . To stay in market , Meesho needs to keep improving its services , making sure product quality and building customer trust by protecting user data.

FAQs

1. How does Meesho earn money?

Meesho makes money in a few ways:

Commissions from Suppliers :

Meesho charges suppliers a fee for selling their products on the site. This fee is usually between 10% and 25% of the product price.

Commissions from Resellers :

When resellers sell products through Meesho, the platform takes a fee of about 10% to 20% from each sale.

Advertising :

Meesho allows brands to pay for ads on its site , which also helps it earn money.

Shipping Fees :

Customers pay for shipping when they order products, and this adds to Meesho’s earnings.

2. What is the full form of Meesho?

The full form of Meesho is “Meri Shop,” which means “My Shop” in English . This name shows that the platform helps people create their own online stores.

3. What is the tagline of Meesho?

Meesho tagline is “Start your online business for free.” This means that anyone can start selling products on Meesho without paying a lot of initial investment .

4. Who is the founder of Meesho?

Meesho was started by Vidit Aatrey and Sanjeev Barnwal in December 2015. They wanted to help people sell products online easily.

5. Why is Meesho so cheap?

Meesho has low prices for a few reasons :

Direct Sourcing :

Meesho connects customers directly with suppliers , which cuts out extra costs.

Low Costs :

Meesho does not keep products in stock , so it saves money on storage.

Competition :

Meesho competes with other online stores, which helps keep prices low.

Empowering Resellers :

Resellers can set their own prices, which often leads to lower prices for customers.

Also Read :

What is GDP ? in simple words
swot analysis of Genpact
swot analysis of hero motocorp
Swot analysis of Bajaj Allianz

sahan kumar

Hello! I am Sahan Kumar, an MBA student with a keen interest in finance and business analytics tools. On this platform, I provide free resources to help you learn more about finance and business analytics. Let's learn together !

ad here 1

Related Post

is suzlon energy a good buy for long term

swot analysis of croma – student friendly report

swot analysis of rattanindia power – student friendly report

swot analysis of ditto insurance company – student friendly report 2024

2 thoughts on “swot analysis of meesho company – student friendly detailed study”

Leave a Comment