SWOT ANALYSIS

Strengths
 Engro Foods is a well-established brand name, customers automatically have a brand association
 They can easily afford research and development costs in order to introduce new products
 They have strong supply chain
 The increasing sale figures form years to years showing customer satisfaction upon Engro Foods
Limited products
 Engro Foods involve in consumer and product research before and after launching a product
 Engro Foods is having strong relationship with global research partners like AC Nielsen, JWT
Asiatic
 Company is not relying on third parties for sale and distribution and has its own sale and
distributing network
 Engro Foods Limited only has the third-generation UHT milk plant in the country. Engro Foods
Limited plant is the only plant in Pakistan that uses Bactofuge technology to virtually eliminate
bacteria and ensure premium quality and hygiene
Weaknesses
 One major weakness of Engro Foods in dairy products, which is that 85% of its milk collection
centres are in Punjab, while processing unit is in Sindh
 Higher transportation cost
 Dependency on TETRA PAK for the entire packing of its dairy products
 Paying higher cost of packing of products results in higher overall products cost
 The product range of Engro Foods narrows as compared to its competitors
Opportunities
 Pakistan is the fourth largest milk producing country. So, it’s an opportunity for company to grow
in this sector
 By increasing the milk related products company can go globally
 Engro can launch products like dry milk, cereal and Yogurts etc.
 Growing dissatisfaction with milkmen’s milk and increasing awareness about health and hygiene
issues have led to increased processed milk consumption
Threats
 Engro Foods competitors Nestle and Haleeb are biggest threat
 There are opportunities and doors for new players are open who can be the future competitors
 Consumer is aware now, there is need to maintain the quality of products. If Engro Foods will not
do so it loses its business in foods. There is threat from the customer side