SWOT Analysis of Reckitt Benckiser

SWOT Analysis of Reckitt Benckiser

Reckitt Benckiser Group or simple RB is a British multinational consumer goods manufacturer. The headquarter of RB is in England. It is a leading manufacturer of branded products in personal care and household cleaning. It produces hygiene, health, and home products.

The brands of RB include the antiseptic brand Dettol, French’s Mustard, the sore throat medicine Strepsils, the Veet (hair remover), Calgon, Air Wick(the air freshener), Clearasil, Durex, Cillit Bang, Lysol, Mycil and Vanish.

Reckitt Benckiser has its operations functional in around 60 countries. The products are sold in almost 200 countries.

SWOT Analysis of Reckitt Benckiser

Internal Strategic Analysis of Reckitt Benckiser

Strengths

  1. Strong Goodwill – RB has strong Goodwill of offering health products to the middle and upper class people.
  2. Economies of Scale – When it is about the production costs, RD achieved economies of scale in producing its products.
  3. Distribution Network – it is efficient. It distributes its own products to the retail levels such as local shops.
  4. Entrepreneurial Ability – RD gives its employees entrepreneurial freedom by which it ensures innovations in product offerings.
  5. Well Diversified Portfolio – The well diversified portfolio of Reckitt Benckiser provides the way of stabilized earning.
  6. Reputation on fulfilling Social responsibility – Has strong reputation of sharing profit with those people who help to improve children’s health.
  7. Strategies – of choosing right people and right culture, focus on its specific brands, target markets etc.
  8. Skilled Workforce – Reckitt Benckiser has a skilled workforce of about
  9. Strong Products in the product portfolio – It has the oldest germ killers in its portfolio; Dettol is literally the oldest germ killer existing in the market. It is in the market since 1936.

Weakness

  1. High Price – comparing to the competitors, the product price is high.
  2. Lower Profit Margin – The profit margin is still low.

 

External Strategic Analysis of Reckitt Benckiser

Opportunities

  1. Improvement of R&D – investment in the R&D department can increase the possibility of offering innovative products and may increasing profit as well.
  2. Focus more on selling products in Developed countries – as the developed countries have low unemployment rate and the purchase power of the people is high, it can earn more profit in those countries.
  3. Globalization – gave the opportunities to be functional in more than 60 countries and the opportunities are increasing because of the functionality of globalization. The revenue is increasing in Europe, North America, Australia and New Zealand.
  4. Developing countries – Reckitt Benckiser has big opportunities to grow it’s sales in the developing countries such as Bangladesh, India, Srilanka etc.
  5. Conducting more Acquisition & Merger – by this it can increase its size in future.
  6. Entering New Markets – Entering new markets will increase the profit margin.

 

Threats

  1. Market Regulations – healthcare products are highly regulated by the government
  2. Trade Agreement – trade agreement between countries may restrict the selling of its products and create trade barrier.
  3. Demands in Developing Countries – Demand is not stable in developing countries. It creates uncertainty and makes barrier to earn stabilized earning from those countries.
  4. Growth of similar companies in Developing countries – it reduces the sales as the host countries are producing the same products.
  5. High unemployment & Low Spending – as the developing countries employement is low and their spending capability is low as well, RB may experience low sales in those countries.
  6. Changing of technologies frequently – it makes the existing technologies obsolete and may require more investment in future.
  7. Growing Competition – the competition in the similar industries are increasing, the competitors are becoming much stronger.
  8. Economic Problems in countries – if the developed countries experience economic downfall, it can experience huge fall in sales as the sales are heavily dependent on developed countries.
  9. Bad Reputation – Recently, a bad incident in South Korea gave Reckitt Benckiser very bad reputation. South Korean executive of RB jailed for link to deadly humidifier disinfectant. For this incident of the death of 100 people, a former Reckitt Benckiser executive was jailed for seven years

 

Competitors’

 

References

  1. Reckitt Benckiser Wiki
  2. Analysis of Reckitt_Benckiser
  3. SWOT of Dettol
  4. An analysis from MBASKOOL
  5. Reckitt Benckiser Executive Jailed for 7 Years

faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.