Givaudan SWOT and PESTLE Analysis

Strength

1. Market leader in flavors and fragrances with highest share: Givaudan is the world’s largest company in the flavors and fragrances industry with more than 25% market share. The company’s customized products have over 10,000 natural & synthetic raw materials for customers which have helped Givaudan to be on top of the market. They have created a special place in the value chain of the industry and have excelled in understanding consumer purchasing behavior. In the fragrance division, major revenue comes from consumer products including home care & fabric care, active beauty growth products, and fine fragrance products. In the flavor’s division, major contributors are health & wellbeing products along with natural fragrances products. The Group reported full year sales of CHF 7,117 million for FY22 with Fragrance and Beauty Division accounting for CHF 3,256 million an increase of 5.5% in like for like sale (LFL), and the Taste & Wellbeing accounting for CHF 3,861 million, an increase in 5.2% on LFL basis. As compared to their competitors, Givaudan has maintained good relationships with multinational customers across the globe and are also focusing on reaching out to local and regional customers. This is achieved by listening to each customer on priority, partnering with them at each step of the creation & value-chain, and remaining flexible & agile in providing offerings.

2. Presence in over 181 countries globally: The organization started from Europe, and gradually ventured in various continents across oceans. Currently, Givaudan is present in over 181 countries with over 73 production sites for Fragrances and Flavours product manufacturing. This has helped them reach out to their customers, get their feedback within stipulated time, and improve their product line. As per updated figures of FY2022, they have segregated their presence into 6 regions including Switzerland (1.09% sales), Europe (27.3% sales), Asia Pacific (24.9% sales), Africa and Middle East Region (8.5% sales), North America Region (26.4% sales) and Latin America Region (11.77% sales). Of the above-mentioned regions, Japan, North America, and Western Europe are considered as mature markets with 56% sales in FY2022 and are growing at a slower rate, and company now focuses on High growth markets particularly China.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

1. Laws related to Intellectual property Rights (IPR): Flavours & Fragrances Industry face multiple challenges in their quest to retain and attract customers. They invest heavily in research & innovation so as to produce consumer products with right taste, good appearance, and have all the nutritional aspects. They depend on either Intellectual Property & Patents, or Trade secret. Processing methods to develop the products is very critical and includes cost-effective manufacturing, methods of providing mixing of ingredients, and new process steps to come up with new product altogether. Though the process of patent filling is costly as it depends on the areas you want your secret to be protected, but will enable the brand to prevent third parties from creating or using or offering the patented invention for around 20 years. Givaudan SA has many patents filled including Encapsulated perfume compositions, organic compounds, aroma compositions, topical flavoring compositions, etc. They are also involved in various disputes in last few days including data theft by their previous vice-president & perfumer James Krivda.

The remaining section of “Legal” is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.