Detailed SWOT Analysis of Royal Enfield

Royal Enfield is the oldest motorcycle brand and manufactured its first motorcycle in 1901. In this blog, let’s learn more about the SWOT analysis of Royal Enfield which is the oldest but a company with a rich legacy. 

About Royal Enfield

“MADE LIKE A GUN”

The Royal Enfield brand came into effect as a collaboration between the Enfield company and Eicher India in 1994. It is a corporation dealing with 2-wheelers connected to the automotive sector. The best features of the brand’s vehicles are rough aesthetics, strong power, unrivaled stability, and a classy look. 

It is a British-owned company owned by an Indian-owned motorcycle manufacturing brand. Today the company enjoys 120+ years of long history of offering exceptional motorcycling experience. One of its recent limited editions was the Interceptor & Continental GT. 

Royal Enfield at a Glance

Founder	RW (Bob Walker) Smith
Key People	B Govindarajan – CEO
Year of Establishment	1901
Annual Revenue (as of FY23)	0.92 million
Headquarters	Chennai, Tamil Nadu, India
Total no. of employees	Approx. 16,000

Products offered by Royal Enfield

Royal Enfield provides several types of motorcycles that meet various riding preferences. As of 2024, here is a list of their current models:

• Bullet 350
• Classic 350
• Meteor 350
• Hunter 350
• Scram 411
• Himalayan
• New Himalayan 450
• Super Meteor 650
• INT650 (Interceptor 650)
• Continental GT 650
• Shotgun 650
• Guerrilla 450

SWOT Analysis of Royal Enfield 

SWOT analysis is concerned with the opportunities, strengths, threats, and weaknesses of a company. This SWOT analysis of Royal Enfield offers deep insights that help companies grow financially. 

Strengths of Royal Enfield 

The strengths of Royal Enfield lie in –

1. Strong brand image 

RE has created a very strong brand image as well as identity that has gained a lot of credibility with the customers. It is known as cult brand these days due to its immense popularity. The company has high-quality standards that have made it so popular. 

2. Best R&D

The company has high-quality standards that have made it so popular. The reliability and trust of customers is something that Royal Enfield R&D Center makes sure to always safeguard.

3. Global market presence

RE has exported to more than 25 countries across the globe and with its increase in demand the brand has invested hugely in setting up robust manufacturing facilities in the United Kingdom. 

4. Backed by Eicher Group 

Enfield India partnered with Eicher Group from Royal Enfield. Eicher – one of the leading automotive manufacturers has upheld RE. This is one of the primary factors for the remarkable success of Royal Enfield.

Weaknesses of Royal Enfield 

Royal Enfield holds the following weaknesses –

1. Expensive 

Royal Enfield has been targeting the niche market of motorcycles that has the capability to buy expensive bikes. But, the company should also consider producing a low-variant of Royal Enfield so that a large market can afford to buy. 

2. Low mileage 

The brand produces huge-volume cylinder bikes. These bikes burn higher amounts of fuel and air which gives low mileage as compared to the bikes having high CC bikes. 

3. Delayed service

RE should improvise more on delivering its 120-year edition bikes. This is getting more hatred for the brand on social media impacting the sales of the company. 

Opportunities for Royal Enfield

Royal Enfield has numerous opportunities in the following factors – 

1. Increasing market 

The market for two-wheelers is bulging across the world offering a great opportunity for the brand to enhance its customer base while also expanding the sales worldwide. 

2. Worldwide expansion

The company is required to expand its export market along with more countries in Asia, Africa, and Europe. The increase in popularity and sales for these motorcycles gives Royal Enfield a chance to expand their market share.

3. Greater disposable income

The available spending amongst the working class in India has reached an all-time high. Those who were not able to buy Royal Enfiled a few years back hold the capacity to buy them. It is one main reason for the growing sales of RE. 

Threats to Royal Enfield 

Royal Enfield has major threats from the following elements –

1. Severe competition 

RE competes with a number of other bike companies in the cruiser spaces across the world. It also has intense competition with the best utility bikes in the world. This type of competition reduces Royal Enfield’s market share. 

2. Increased fuel prices

Royal Enfield bikes give very low mileage. Thus, any change to fuel prices greatly impacts revenue for the company.

3. Social media hatred 

Due to poor delivery intervals and after-sales service, social media displays a large amount of anger towards Royal Enfield. If not improved, the brand will lose its good market image soon. 

Top Competitors of Royal Enfield 

Royal Enfield’s top 5 competitors are listed as –

1. Jawa Motorcycles 

Jawa is a direct competitor to Royal Enfield in the retro and classic motorcycle features. It has models like the Jawa Classic and Jawa Forty-Two. 

2. Harley-Davidson

Harley-Davidson is a worldwide recognized brand competition with Royal Enfield in the incredible motorcycle segment. Riders interested in style and performance will appreciate the focus on cruiser and touring motorcycles.

3. Bajaj Auto 

Bajaj Auto’s Dominar series is a direct competitor with Royal Enfield by offering performance-oriented motorcycles and marks riders curious about touring & long-distance travel.

4. Honda Motorcycles

Honda’s H’ness CB350 is an old-fashioned motorcycle that directly contests Royal Enfield’s classic models available. 

5. Yamaha Motor Company

Yamaha competes with Royal Enfield with its broad range of motorcycles, including the FZ and MT series. This will appeal to younger riders pursuing performance and style. 

Conclusion 

As we have seen, Royal Enfield has become the biggest Indian manufacturing company due to its immense strengths and factors. But, the company also faces weaknesses like expensive bikes, delivery delays, etc.

Moreover, the brand takes on many opportunities, such as increasing market share, global platforms, and having potential customers with high incomes. While RE has grown their revenue in the past few years, there’s still so much farther they can go. The company should focus more on grabbing the market share as the demand for two-wheelers has been on the rise.