Reckitt Benckiser SWOT Analysis Sample UK

Parent Company: Reckitt Benckiser Group plc

Category: Health Hygiene

Sector: FMCG

Tagline/ Slogan: Health Hygiene Home

USP: One of the most innovative companies in healthcare

Founded: Slough, England, UK

Headquaters: 1814

Reckitt Benckiser Group plc is a British multinational consumer goods company headquartered in Slough, England. It is a producer of health, hygiene and home products. The company was formed in 1999 by the merger of British companies Reckitt & Sons and Benckiser.

Reckitt Benckiser has operations in around 60 countries and its products are available in over 190 countries. The company sells its products under a number of brand names, including Airwick, Calgon, Finish, Harpic, Lysol, Mr Muscle, Radox, and Vanish.

In 2015, Reckitt Benckiser was ranked the 14th most valuable brand in the world by Brand Finance. In 2016, the company had sales of £12.4 billion.

This was the reckitt benckiser company overview. Now, let’s see the strenghts, weaknesses,  opportunities, and threats of the company through SWOT analysis.

Reckitt Benckiser Strengths

1. Wide range of products: Reckitt Benckiser offers a wide range of products in different categories like health, hygiene, and home. This gives the company a competitive edge over its rivals who might just offer products in one category.
2. Innovation: Reckitt Benckiser is one of the most innovative companies in the world. It has been ranked number 1 in the UK for innovation for two years in a row (2014 and 2015) by Kantar Millward Brown.
3. Strong brands: The company has a number of strong brands like Airwick, Calgon, Finish, Harpic, Lysol, Mr Muscle, Radox, and Vanish. These brands are well-known and trusted by consumers.
4. Global reach: Reckitt Benckiser has a global reach with its products being available in over 190 countries. The company has operations in around 60 countries.
5. Strong financials: Reckitt Benckiser is a financially strong company. It had sales of £12.4 billion in 2016 and a market capitalization of £42.5 billion as of June 2017.

Reckitt Benckiser Weaknesses

1. Dependence on developed markets: A large portion of Reckitt Benckiser’s sales come from developed markets like Europe and North America. This makes the company vulnerable to economic downturns in these markets.
2. Lack of presence in emerging markets: Reckitt Benckiser has a limited presence in emerging markets like Asia, Africa, and Latin America. This is a big opportunity for the company’s competitors.
3. High debt levels: As of June 2017, Reckitt Benckiser had a debt of £8.4 billion. This high level of debt could put the company at risk if there is an economic downturn.
4. Recall of products: In 2015, Reckitt Benckiser had to recall a number of its products due to safety concerns. This led to losses for the company and damage to its reputation.
5. Lack of success in areas outside our main business: Reckitt Benckiser has made a number of acquisitions in areas outside its main business like food, drinks, and pharmaceuticals. However, these acquisitions have not been very successful.

Reckitt Benckiser Opportunities

1. Expansion into emerging markets: There is a big opportunity for Reckitt Benckiser to expand its presence in emerging markets like Asia, Africa, and Latin America. These markets are growing rapidly and offer a huge potential for the company’s products.
2. Acquisitions: Reckitt Benckiser can use its strong financial position to make acquisitions in order to grow its business.
3. Product innovation: The company can continue to innovate and develop new products in order to maintain its competitive edge.
4. Partnerships: Reckitt Benckiser can form partnerships with other companies in order to expand its reach and grow its business.
5. Acquiring new customers from online sources: With the growth of online shopping, there is a big opportunity for Reckitt Benckiser to acquire new customers from online sources.

Reckitt Benckiser Threats

1. Competition: There is a lot of competition in the markets where Reckitt Benckiser operates. The company’s rivals include Unilever, P&G, and Clorox.
2. Economic downturns: As mentioned earlier, a large portion of Reckitt Benckiser’s sales come from developed markets like Europe and North America. This makes the company vulnerable to economic downturns in these markets.
3. Regulatory changes: Changes in government regulations can have an impact on Reckitt Benckiser’s business. For example, the company’s products are subject to safety regulations.
4. Recall of products: In 2015, Reckitt Benckiser had to recall a number of its products due to safety concerns. This led to losses for the company and damage to its reputation.
5. Natural disasters: Natural disasters like floods, earthquakes, and hurricanes can disrupt Reckitt Benckiser’s supply chain and adversely impact its business.

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