Swot Analysis

Strength: 

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Management philosophy and commitment to maximize shareholders returns. Upgraded product design and development facilities to develop new products and aid diversification. Ongoing activities to support up of gradational of operational performance and rise in productivity. Team of talented and committed professionals available to improve companies performance.

Weakness:

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Competition from other online trading companies. Lower customer base. Website performance remains low many a times. The portal is not user friendly. Weak brand recall.

Opportunity: 

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It can tap more investors to increase the customer base in this booming capital market. More focus on retail investors with small savings. Customer retention. Aggressive advertising for strong brand recall.

Threat:

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Constant pressure to maintain the reputation in the market as there are various other players in the market.

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Relentless pressure to maintain profitability of the customer and constant upgradation of the trading platform.

Strength:        

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Cost advantage. Effective communication. High R&D. Online growth. Loyal customers. Market share leadership. Strong management team. Reputation management. Diverse products and offers for the customers. Strong brand recall. Nationwide reach to the masses.

Weakness:    

High employee turnover Less small investors. Non-aggressive promotional strategies. Focuses more on HNI investors than retail investors which results in loss of market share as compared to most competitors.

Opportunity: 

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In the booming capital market it can launch new services and increase its customer base. It can easily tap new retail investors with small savings through aggressive promotions. Abolition of long term capital gain tax on shares and reduction in short term capital gain is making the stock market a hot destination for investment among small investors.

Threat:  

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Aggressive promotional strategies by close competitors. Lack of sufficient branch offices for speedy delivery of services. More and more players are venturing into this domain thus risk of reduced earning of ShareKhan. Product substitution.

Strength:   • • • • • • •

Diverse branch network allows t to penetrate deep into the existing and untapped market. It offers its client a pool of financial services. No annual maintenance charges. No custodial charge. It does not keep any condition as to collect minimum amount of brokerage from its clients Equity analysis report to support the investment decision of its clients Trading via branch network, telephones and internet account i.e. both online and offline Induction of new employees through an extensive computer based training module. Real time online transfer fund and exposure updating facility with HDFC, CITIBANK, ICICI.

Weakness: 

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It should have its own mutual funds as Indiabulls is providing advises in mutual fund. There should be a separate set of staff working in fields and trading on behalf of their clients: Position to answer the questions of their clients relating to the current market position as they are on fields. It does not provide with the indices of major world markets, ADR prices of Indian scripts. Unlike some of its competitors like ICICI and Kotak, Indiabulls does not provide a complete catalogue of financial services (e.g. Banking facility). Due to the continuous need to meet the targets, some of the Relationship managers crack under pressure and thus leave the organization.

Opportunity:   

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Financial services like banking. Market expansion i.e. opening branches at untapped areas. Indiabulls is registered with Luxembourg stock exchange and so can target other stock exchanges. ATM facility should be provided for easy withdrawals. The Capital market in the last few years has turned out to be one of the favorable avenues for the retail investors. Scope of online trading on BSE. Indiabulls has tied up with other third party companies to sell their products. Due to the high client base of Indiabulls, there exists an opportunity to cross sell these products in the market.

Threat: 

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Companies like Share khan, ICICI Direct, Kotak, and Private Brokers are major threats to Indiabulls. Banks with demat facility jockeying for position. Local brokers capable of charging lower brokerage. Industry competitors vying for the same target segment. Changes in SEBI guidelines & other tax implications. Government Regulations.

Strength:

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Large retail customer base. Value-for-money proposition for customers. Strong research which ‘picks winners’. Bouquet of asset & liability products. Wide branch network across India.

Weakness:

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Does not have a bank in the group.

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Rural area does not have the facility of internet connection thus it cannot reach the entire mass.

Opportunity:

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Booming financial services sector. Institutional broking. Wealth management. Leverage network for more products.

Threats:

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Large players foraying into the space. Replicable product offering. Market dependence. Manpower retention.

Strengths:

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Large and diverse distribution network. Strong research and sales teams. Brand recognition/Experienced top management. Strong financial results.

Weakness:

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Charges are high compared to other players in the industry.

Opportunity: 

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Growing Financial Services industry's share of wallet for disposable income. Huge market opportunity for wealth management service providers as Indian wealth management business is transforming from mere wealth safeguarding to growing wealth. Regulatory reforms would aid greater participation by all class of investors. Leveraging technology to enable best practices and processes. Increased appetite (need) of Indian corporate for growth capital.

Threats:   

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Execution risk. Slowdown in global liquidity flows. Increased intensity of competition from local and global players. Unfavorable economic conditions.