Strengths in the SWOT analysis of Tide :

1.Tide enjoys the premium handling of being the flagship brand of P&G.

2) Good quality detergent at a lower price –

Tide is playing on the unique selling proposition of giving the good quality
product at a lower price and the brand has been so far successful in its objective.

3) Existing distribution and sales networks of P&G have been a great

help –
Over the years P&G have developed strong distribution and sales networks for
which tide is getting great benefits using the same network without having to
invest any more in efforts of selling and supplying.

4) Leading market-position –

Tide has been enjoying one of the leading brands in detergents which gives it an
added advantage of trying and innovating new products to further increase their
market position.

5) Clear communication of the benefit of whiteness –

All the promotions of Tide communicates the whiteness proposition which they
have been able to sustain well. This has also helped them in focusing on the USP
which people liked.

6) Strong brand recall and awareness – Tide has become a household name
and it needs no introduction. They have been successful in positioning the
product to the right segment which has helped Tide in maintaining a strong
brand value in the market.
7)High level of customer satisfaction – the company with its dedicated customer
relationship management department has able to achieve a high level of customer
satisfaction among present customers and good brand equity among the potential
customers.

Weaknesses in the SWOT analysis of Tide :

1) Old giant competitors – The competition is huge and with giant companies
of the world which is why Tide cannot allow making these big-name
competitors as its weakness to lose against them in the market.

2) Similar or substitute products are available locally at even lower prices –

Since Tide markets itself as a low price detergent and there are further lower
priced detergents available in the market at the local level so this low
price strategy sometimes acts as a negative point for the brand.

3) The market is already mature – The market for detergents is already

mature yet customers expect the companies to come up with something new.
In quest of delivering this something new can sometimes rule out the player
completely from a mature market like this one.

4. High attrition rate in work force – Tide has a higher attrition rate
comparing to other organizations in the industry and have to spend a lot of
time compared to its competitors on training and development of its
employees.

5.Investment in Research and Development is below the fastest growing

players in the industry. Even though Tide is spending above the industry
average on Research and Development, it has not been able to compete with
the leading players in the industry in terms of innovation. It has come across
as a mature firm looking forward to bring out products based on tested
features in the market.The profitability ratio and Net Contribution % of Tide
are below the industry average.
Opportunities in the SWOT analysis of Tide :
1) Launching new products with better technology and innovation –
This is what today’s customer look for even in the traditional products like
detergents andTide has enormous potentials to explore in this area.

2) Rural markets have high potential – Rural markets are turning up to

use these modern-day detergent products at a very fast pace. This is
an opportunity for a brand like Tide to tap this opportunity effectively.

3) Can Tide identify a niche target market of its own – Every product
sells on a USP and for Tide, it is the whiteness at a lower price. It would be
interesting to see if they can explore an identify a niche market for themselves
which can establish a monopoly for them.

4) Changing lifestyle of people – This is always an opportunity. Put your

best analysts to identify what this generation wants and design that. This can
only come if a company can understand the changing needs of people and act
swiftly upon it.

5) Explore new markets – Though Tide is already present in many

countries of the world, to expand further in new geographic places is never a
bad idea provided it is executed with proper caution.

6)Decreasing cost of transportation because of lower shipping prices can also

bring down the cost of Tide products thus providing an opportunity to the
company - either to boost its profitability or pass on the benefits to the
customers to gain market share.

7)New trends in the consumer behavior can open up new market for the Tide
as it provides a great opportunity for the organization to build new revenue
streams and diversify into new product categories too.

8)Stable free cash flow provides opportunities to invest in adjacent product

segments. With more cash in bank the company can invest in new technologies
as well as in new products segments. This should open a window of
opportunity for Tide in other product categories.
Threats in the SWOT analysis of Tide :
1) Fake products – For a product like detergent, it is very easy for
malpractitioners to launch fake products with similar names and packaging.

2) Price wars with competitors – Since competitors in the industry are all
big companies, sometimes price wars prove to be fatal for one or the other.

3) Ambush marketing by competitors – For these consumer products,

many companies often go for ambush marketing to tarnish the image of
another brand. It is important for a brand like Tide to always be on top of
such threats.

4) Is the product safe – Detergent is a product where a lot of chemicals are

used for manufacturing. In this case, Tide has to make sure that by all means,
they are following all the necessary regulations set for being health friendly
and environment-friendly.

5)As the company is operating in numerous countries it is exposed to currency

fluctuations especially given the volatile political climate in number of
markets across the world.

6)Shortage of skilled workforce in certain global market represents a threat to

steady growth of profits for Tide/Ariel in those markets.

7)The company can face lawsuits in various markets given - different laws and
continuous fluctuations regarding product standards in those markets.

8)Changing consumer buying behavior from online channel could be a threat

to the existing physical infrastructure driven supply chain model.

9)Imitation of the counterfeit and low quality product is also a threat to Tide
product especially in the emerging markets and low income markets.

10)The demand of the highly profitable products is seasonal in nature and any
unlikely event during the peak season may impact the profitability of the
company in short to medium term.
The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar
to conduct a thorough external analysis of the business environment of any
industry for which data is available. This is an important step for eventually
devising a strategy that can effectively manoeuvre the competition to
maximize a firm's chances of sustainability and profitability. PESTEL is an
amalgam of initials of various factors that not only affect Tide but the entire
industry as a whole- these factors are namely Political, Economic, Social,
Technological, Environmental and Legal.

PESTEL analysis provides valuable insight into the operating challenges that
any company in the industry appears to face, and so the company in question
may face as well. An understanding of the overall competitive landscape will
prevent investors and entrepreneurs from partaking in any risky ventures if
the risk arises out of, say, an unstable political regime or a sudden economic
recession. This may be best exemplified by the recent exit of the United
Kingdom from the European Union. The sudden fallout was political and
caused many investors to pull out of new ventures and halt their expansions,
as the future became uncertain in the wake of this decision.

Political Factors that Impact Tide

The political factors that may impact the profitability or chances of survival of the
company are quite diverse. The political risks vary from sudden changes in
existing political regimes to civil unrest to major decisions taken by the
government. In cases of possible multinationals, one may also include political
factors that take place affect not only the host country but also all countries that
contain business operations, or that may engage in trade with Tide.
A high level of taxation would demotivate companies like Tide from maximizing
their profits.

Economic Factors that Impact Tide Ariel

Economic factors are all those that pertain to the economy of the country that Tide
Ariel, such as changes in the inflation rate, the foreign exchange rate, the interest
rate, the gross domestic product, and the current stage of the economic cycle.
These factors, and their resulting impact on aggregate demand, aggregate
investment and the business climate, in general, have the potential to make a
company highly profitable, or extremely likely to incur a loss. The economic
factors in the PESTEL analysis are macroeconomic.

The economic factors that Tide Ariel may be sensitive to, and in turn should
consider before investing may include the following:

The economic system that is currently operational in the sector in question-

whether it is a monopoly, an oligopoly, or something similar to a perfect
competition economic system.

The rate of GDP growth in the country will affect how fast Tide Ariel is expected
to grow in the near future.

The interest rates in the country would affect how much individuals are willing to
borrow and invest. Higher rates would result in greater investments that would
mean more growth for Tide Ariel

However efficiently the financial markets operate also impact how well Tide Ariel
can raise capital at a fair price, keeping in mind the demand and supply.

The exchange rate of the country Tide Ariel operates in would impact the
profitability of Tide Ariel, particularly if Tide Ariel engages in international trade.
The stability of the currency is also important- an unstable currency discourages
international investors.

A high level of unemployment in the country would mean there is a greater supply
of jobs than demand, meaning people would be willing to work for a lower wage,
which would lower the costs of Tide Ariel
The social factors that impact Tide

are a direct reflection of the society that Tide Ariel operates in, and encompasses
culture, belief, attitudes and values that the majority of the population may hold as
a community. The impact of social factors is not only important for the operational
aspect of Tide Ariel, but also on the marketing aspect of the organization. A
thorough understanding of the customers, their lifestyle, level of education and
beliefs in a society, or segment of society, would help design both the products and
marketing messages that would lead to a venture becoming a success.

The social factors that affect Tide Ariel and should be included in the social aspect
of the PESTEL analysis include the following:

The demographics of the population, meaning their respective ages and genders,
vastly impact whether or not a certain product may be marketed to them. Makeup
is mostly catered to women, so targeting a majority male population would be less
population than targeting a population that is mostly female.

The class distribution among the population is of paramount importance: Tide

Ariel would be unable to promote a premium product to the general public if the
majority of the population was a lower class; rather, they would have to rely on
very niche marketing.

To some extent, the differences in educational background between the marketers

and the target market may make it difficult to relate to and draw in the target
market effectively. Tide Ariel should be very careful not to lose the connection to
the target market's interests and priorities.

Tide Ariel needs to be fully aware of what level of health standards, reactions to
harassment claims and importance of environmental protection prevail in the
industry as a whole, and thus are expected from any company as they are seen as
the norm.

Technological Factors that Impact Tide Ariel

Technology can rapidly dismantle the price structure and competitive landscape of
an industry in a very short amount of time. It thus becomes extremely important to
constantly and consistently innovate, not only for the sake of maximizing possible
profits and becoming a market leader, but also to prevent obsolescence in the near
future. There are multiple instances of innovative products completely redesigning
the norm for an entire industry: Uber and Lyft dominate the taxi cab industry;
smartphones have left other phones an unviable option for most et cetera.

The technological factors that may influence Tide Ariel may include the following:

The recent technological developments and breakthroughs made by competitors, as

mentioned above. If Tide Ariel encounters a new technology that is gaining
popularity in the industry in question, it is important to monitor the level of
popularity and how quickly it is growing and disrupting its competitors’ revenues.
This would translate to the level of urgency required to adequately respond to the
innovation, either by matching the technology or finding an innovative alternative.

How easy, and thus quickly, will the technology be diffused to other firms in the
industry, leading to other firms copying the technological processes/ features of
Tide Ariel

How much an improvement of technology would improve/ transform what the

product initially offers. If this improvement is drastic, then other firms in the
industry suffer more heavily.

The impact of the technology on the costs that most companies in the industry are
subject to have the potential to increase or reduce the resulting profits greatly. If
these profits are great in number, they may be reinvested into the research and
development department, where future technological innovations would further
raise the level of profits, and so on, ensuring sustainable profits over a long period
of time.

Environmental Factors that Impact Tide Ariel

Different industries hold different standards of environmental protection in their
head as the norm. This norm then dictates what every company should aim for, in
the least, to prevent becoming the target of pressure groups and boycotts due to a
lack of environmental conscientiousness. A company in the textile industry, for
example, is not expected to incur the same level of pollution and environmental
degradation as an oil company. The new consumer, armed with the interest and the
knowledge it carries, prefers to give its business to companies it views as more
ethical, particularly about the environment in the wake of global warming.

The environmental factors that may significantly impact Tide Ariel include:

The current weather conditions may significantly impact the ability of Tide Ariel
to manage the transportation of both the resources and the finished product. This,
in turn, would affect the delivery dates of the final product in the case of, say, an
unexpected monsoon.

Climate change would also render some products useless. For example, in the case
of textiles, in countries where the winter has become very mild due to Global
Warming, warm winter clothes have much less of a market.

Those companies that produce extremely large amounts of waste may be required
by law to manage their environmental habits. This may include pollution fines and
quotas, which may place a financial strain on Tide Ariel

If Tide Ariel should (knowingly or unknowingly) contribute to the further

endangerment of an already endangered species may face not only the
consequences from the law but also face a backlash from the general public who
may then boycott Tide Ariel in retaliation.

While relying, in any percentage, on renewable energy may be expensive, it often

receives support not only from the government but also from its customer base,
who may be willing to pay a premium price for the products that Tide Ariel may
produce.

Legal Factors that Impact Tide Ariel

The government institutions and frameworks in a country, while technically also
political and thus subject to whichever political party holds the majority in a
government body, are also legal and thus should be considered in a PESTEL
analysis. Often Tide Ariel policies on their own are not enough to efficiently
protect Tide Ariel and its workers, making Tide Ariel appear an undesirable place
of employment that may repel skilled, talented workers.

The legal factors that deserve consideration include the following:

Intellectual property laws and other data protection laws are, as mentioned earlier,
in place to protect the ideas and patents of companies who are only profiting
because of that information. If there is a likelihood that the data is stolen, then Tide
Ariel will lose its competitive edge and have a high chance of failure.

Discrimination laws are placed by the government to protect the employees and
ensure that everyone in Tide Ariel is treated fairly and given the same
opportunities, regardless of gender, age, disability, ethnicity, religion or sexual
orientation.

Health and safety laws were created after witnessing the horrible conditions that
employees were forced to work in during and directly after the industrial
revolution. Implementing the proper regulations may be expensive, but Tide Ariel
has to engage in it, not only due to the law but also out of Tide Ariel's personal
feeling of ethical and social responsibility to other human beings.

Laws are also placed to ensure a certain level of quality or reasonable price for
certain products to keep the customer safe and prevent them for being provided.
The industries this applies to find often their costs elevated.