Larsen & Toubro-WPS Office
Larsen & Toubro-WPS Office
Larsen & Toubro-WPS Office
SWOT analysis of Larsen & Toubro analyses the brand/company with its strengths, weaknesses,
opportunities & threats. In Larsen & Toubro SWOT Analysis, the strengths and weaknesses are the
internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Larsen & Toubro to
benchmark its business & performance as compared to the competitors and industry. Larsen & Toubro is
one of the leading brands in the conglomerates sector. The table below also lists the top Larsen & Toubro
competitors and elaborates Larsen & Toubro market segmentation, target group, positioning & Unique
Selling Proposition (USP).
Larsen & Toubro SWOT, Competitors, Marketing STP & Brand analysis Table
Parent Company
Category
Construction Services
Sector
Conglomerates
Tagline/ Slogan
One of the largest and most respected companies in India for engineering, manufacturing and
integration of custom made technology-intensive equipment and systems
Segment
Based on business type; Based on geography – India, Rest of Asia, the Americas, Africa, Europe, Australia
Target Group
Positioning
Strengths
Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Larsen & Toubro.
Strengths are:
1. Market leadership providing competitive edge - The company can leverage its strong brand name and
market leadership position to gain competitive advantage and also expand into international markets
2. Strong technical expertise reinforce leadership position - L&T has set up an engineering and project
management centre in Abu Dhabi to undertake oil and gas related projects as well as engineering and
consultancy services
3. Diversified revenues providing resilience - In FY2011, the company’s revenues were distributed among
business divisions as follows: engineering and construction, electrical and electronics, machinery and
industrial products, financial services, developmental projects and others. This enables L&T to alleviate
its business risk as fluctuations in a single offering have lesser impact on diversified offerings and provide
resilience to its revenues
5. It has offerings like Construction, Heavy equipment, Electrical equipment, Power, Shipbuilding,
Financial services and IT Services
Weaknesses
Here are the weaknesses in the Larsen & Toubro SWOT Analysis:
1. Dependence on domestic operations for revenue generation - In FY2011, the company's domestic
(India) operations contributed more than 80% of the total revenues.
2. Increasing debt impacting financial flexibility - L&T’s interest and brokerage expenditure over the
period increased
Opportunities
1. Strategic joint ventures strengthening business - L&T has formed a strategic partnership with Cyan
Holdings plc, a UK-based integrated system design company. L&T and Cassidian entered into a
partnership in February 2011, to become an electronics house
for defense and security
3. Growing Indian construction & engineering industry - In 2015, the Indian construction & engineering
industry is forecast to grow
Threats
The threats in the SWOT Analysis of Larsen & Toubro are as mentioned:
1. Rise in cost of construction may affect margins - The rise in crude prices, will increase the cost of
transportation.
2. Challenges in land acquisition likely to affect business - in 2011, Indian government introduced ‘The
Land Acquisition, Rehabilitation and Resettlement Bill, 2011’. As per the bill, compensation for the
owners of the acquired land shall be four times the market value in rural areas and twice in urban areas
3. Intense competition may reduce profitability – few competitors have substantially greater resources
and superior capabilities than L&T
Competitors
1. ABB Ltd
2. Bechtel
3. Hindalco
4. Sundaram Fasteners
5. Gammon India
6. Lanco Infratech
The brandguide table above concludes the Larsen & Toubro SWOT analysis along with its marketing and
brand parameters.
Similar analysis has also been done for the competitors of the company belonging to the same category,
sector or industry. Browse marketing analysis of more brands and companies similar to Larsen & Toubro.
The BrandGuide section covers SWOT Analysis, USP, STP & Competition of more than 6000 brands from
over 20 categories.