SWOT ANALYSIS OF AMARA RAJA BATTERIES LTD.

External EnvironmentOpportunities
1)

High potential growth rate in construction industry. lower overheads.

2) Small players benefit from low entry barriers and superior cost structure because of 3) Untapped potential market in Mechanical Electrical Planning (MEP) services in tier IIand tier III cities. Threats
1)

Shortage of skilled manpower.

2) High volatile raw material costs Internal EnvironmentStrengths 1) The Amara Raja way 2) Experience in execution of green field projects 3) Strong group company image 4) Availability of Pan India office network 5) Exposure to Quality Management System (QMS)/ Safety Health Environment (SHE)/Best business practices Weakness 1) New entrant into business 2) Not having full-fledged function (Employee, marketing, tendering, project managementetc.) Inadequate infrastructure

SWOT Analysis of 3PL Industry

STRENGTHS

WEAKNESSES

Quick way to re-engineer distribution networks Enhanced distribution and transportation Service Time Saving in servicing customer Flexibility in restructuring distribution networks and expansion plans Economies of scale in distribution

Lesser control over outsourced third party activities. Lack of proper set of skilled man power Forged bills and claims by 3PL provider agency. Difficult to switch 3PL provider agency. Lesser co-ordination between branch offices and 3PL agency.

OPPORTUNITIES

THREATS

Better utilization of working capital Fast expansion of principals business without investing in infrastructure and transportation resources Cost optimization as a result of fast and efficient processes Concentration on core competencies

Value Added Tax (VAT) might effect 3PL industry as distribution channels would be trimmed. Poor transportation infrastructure of India might lower the profit margin E-Commerce is emerging as a primary threat to 3PL industry. Threat of leakage of operational competencies to competitors.