Naspers Limited SWOT & PESTLE

  • Report

  • ID: 534850
  • 18 Pages
  • April 2023
  • Region: Africa
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About Naspers Limited

Naspers Limited is a Cape Town-based South African multinational internet, technology, and multimedia holding company with holdings in online shopping, publishing, and venture capital investing. Naspers' primary shareholder is Prosus, a Dutch listed investment business that holds around 49% of its parent as part of a cross ownership arrangement. Naspers, founded in 1915 by attorney W. A. Hofmeyr, was South Africa's largest publishing business during the twentieth century, having holdings in newspapers, magazines, and books. In the 1980s, the corporation began to diversify, offering a subscription television service and investing for the first time outside of South Africa. Naspers made an early investment in Chinese technology giant Tencent in 2001, and the company has since been increasingly focused on the global consumer internet industry. Naspers owns or has invested in various other big global brands like PayU, OLX, MakemyTrip, etc. As of early 2023, Naspers employed over 35,000 people.

The USP of Naspers is that it is one of the largest global internet and entertainment group in the world. The mission statement of Naspers reads, “We believe in the power of local backed by global scale and we look for opportunities to address big societal needs in markets where we see the greatest growth potential.”

Business Sector

Technology, Internet and Media Group

Operating Geography

Cape town, Africa, Global

Revenue

USD 36.7 billion - FY ending March 31st 2022

USD 29.5 billion – FY ending March 31st 2021

SWOT

SWOT Matrix for Naspers

Strength

Weakness

  1. Strong presence in around 130 countries making it one of the largest technology investors globally
  2. Strong local backup and workforce
  3. Built many leading brands, very large customers network
  4. Leadership positions in food delivery business in many large geographies
  1. Slow performance growth in video-entertainment business
  2. Low valuation of the company compared to its investments
  3. Weak social media presence

Opportunity

Threat

  1. Outlines path to e-commerce profits
  2. Focus on latest technologies
  3. Video on demand (VOD) Segment opportunities
  4. Opportunities to unlock adjacent business models in grocery delivery and quick commerce
  1. Competition from Google, Amazon and Facebook
  2. Threat from increase in Chinese government protectionism competitors

Detailed SWOT Analysis of Naspers

The detailed SWOT analysis for Naspers Limited is presented below:

Strength

  1. Strong presence in around 130 countries making it one of the largest technology investors globally: It is organized into six business areas of Classifieds, payments, B2C, ventures, video entertainment and media. It has a strong differentiating factor from its competitors in the way it operates. Naspers invest in and run the leading companies and add value at all life stages. It invests in companies with great potential to grow or have already secured leading market positions. It mainly identifies and targets start-ups taking into account big societal needs, which makes it a sustainable business. These business attitudes and strategies have helped it to expand its reach beyond its origin and into big markets across the globe.

The remaining points in this section are available in the 'Complete Report' on purchase.

Weakness

  1. Slow performance growth in video-entertainment business: Naspers Video entertainment business continues to face challenges which it identified in the last financial year. It had analyzed that cost of 10 gigabytes of mobile data was subjected to economic differences across continents. In some places it cost around 100% of their annual incomes. It created a gap in providing affordable broadband connectivity, which is expected to be filled in a few years. Though the business has started to stabilize, but it is a slow progress.

The remaining points in this section are available 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.

PESTLE

PESTLE Matrix for Naspers

Political

Economic

  1. Exchange controls and policies
  2. Desire to exit the Russian classified market, following an accusation from Ukrainian government
  3. Changes in Chinese government political stances
  1. Mergers of existing companies with new brands
  2. Economic growth in emerging markets

Social

Technological

  1. Supportive demographics for digital business expansion
  2. Increasing consumer trust across online market places
  3. Customer Satisfaction measured in Internet businesses
  1. Impact of Artificial Intelligence in media and entertainment industry
  2. Growth in E-commerce segments

Legal

ENVIRONMENTAL

  1. Regulations for media, entertainment, internet and content businesses
  2. Importance of regional public policy teams
  1. Initiatives to tackle pollution and carbon footprint
  2. Compliance by International standards, and third-party reviews

Detailed PESTLE Analysis of Naspers

The detailed PESTLE analysis for Naspers Limited is presented below:

POLITICAL

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

ECONOMIC

  1. Economic growth in emerging markets: There is a great potential for Naspers to invest in emerging markets to capture them. It recently invested $89 million in an online marketplace car dealer store-Frontier Car Group. Martin Scheepbouwer, chief executive of OLX group, Naspers classifieds subsidiary said that such investments will help the company accelerate their Mergers and Acquisitions strength to a good extent. This proves that such emerging markets carefully chosen along with implementable strategies, can help build Naspers group.  As in the past, in the video-entertainment business, it invested in Multichoice Africa, wherein the past year performance tells that the no. of subscribers increased from 1.5 to 13 million households reaching a large audience, also helping Naspers grow economically as the Video entertainment business profits increased by 29%.

The remaining points in this section are available 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

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

ENVIRONMENTAL

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

More Info

Major Brands

  • Naspers
  • Avito,
  • Dubizzle
  • PayU
  • MultiChoice
  • SuperSport
  • DStv
  • MNet
  • Showmax
  • Ibibo
  • Multiply
  • OLX
  • Buscapé
  • Movile
  • SimilarWeb
  • Avito.ru

Table of Contents

  • Company Overview
    • 1.1 About the Company
    • 1.2 Business Sector
    • 1.3 Operating Geography
    • 1.4 Revenue
  • SWOT Analysis
    • 2.1 SWOT Table/ SWOT Matrix
    • 2.2 SWOT Overview
    • 2.3 Detailed SWOT Analysis
    • 2.4 Strength, Weakness, Opportunity and Threat
  • PESTLE Analysis
    • 3.1 PESTLE Table/ PESTLE Matrix
    • 3.2 PESTLE Overview
    • 3.3 Detailed PESTLE Analysis
    • 3.4 Political, Economic, Social, Technological, Legal and Environmental
  • Appendix
    • 4.1 Major Competitors
    • 4.2 Business Sectors / Diversification
    • 4.3 References used to prepare this reports
  • Conclusion
    • 5.1 Closing thoughts
    • 5.2 Methodology used to prepare this report
    • 5.3 Copyrights and Disclaimer

    References and Copyright

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