Apollo Tyres Ltd: SWOT Analysis

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. Analysis may view the internal factors as strengths or as weaknesses depending upon their effect on the organization 's objectives. What may represent strengths with respect to one objective may be weaknesses (distractions, competition) for another 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.

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

Besides, Apollo Tyres made strategic alliances to focus on strengthening its presence in the commercial vehicles segment and improve market share. Beijing Automotive Industry Group Co. is poised to reach an agreement with India’s Apollo Tyres Ltd to set up a joint venture in China. The agreement would give Apollo an entry into China after its buyout in 2013 of Ohio-based Cooper Tire & Rubber Co. was sunk by opposition from Cooper’s Chinese tire-manufacturing partner. “Apollo has an ambition of being one of the largest tire manufacturers in the world and so entering China is important. They earlier tried to enter China with Cooper and that fell through so it’s a good opportunity to enter the Chinese market with an established player. Apollo will join South Korea’s Hankook Tire Co. and Japan’s Bridgestone Corp. among Asian tiremakers with production in China, the world’s largest auto market. Annual tire production has risen fourfold in the past decade to 941.2 million units in 2014. Shares of Apollo rose as much as 1.6 percent and traded at Rs.175.25 as of 11:13am in Mumbai