Naspers SWOT & PESTLE Analysis

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.

2.Strong local backup and workforce: Local communities are given special importance when dealing with its employees. Local teams of different companies are given full support and backing from Naspers. Also from a large 25000 employees network across the globe,36% are stated to have benefits from continuous trainings. [1].Apart from direct employees , Naspers has tens of thousands of indirect employees like suppliers across the globe.

3.Built many leading brands, very large customers network: Since there are numerous brands associated with the name Naspers, It has acquired a large customer database, such that around 18% of people in the world globally use products and services that Naspers has built, acquired or invested in. For example, 75 million users make use of OLX mobile app monthly on an average.[1] Also, in the media segment,Naspers investment in Media24, to make market-leading mobile content, and a portfolio of e-commerce solutions, paves a great way of building this brand and connecting communities.In the video-entertainmet business,it invested in one of the biggest businesses in Africa, 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.

4.Leadership positions in food delivery business in many large geographies: Naspers, with its strategy of investing in platforms with high global potential and offer online service in high growth markets, had expanded in one of the fastest growing market across globe that is food delivery systems. Naspers had made an initial investment in Swiggy,to bolster its growth and help it reach the market leader position,in India. Recently it made an additional investment of USD 100 million, in the start-up to help it improve customer experience through investment in technology, new services, logistics and restaurant services.Leveraging its expertise, it had also invested in portfolio of leading food delivery companies like Delivery Hero and iFood the latter being a market leader in Brazil and Mexico.Thus identifying and building on the potential of companies, is the core strength of Naspers which it leveraged in a new market of food delivery systems.

Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Supportive demographics for digital business expansion: Naspers is now targeting emerging economies such as India and China where it has a more youthful population as compared to developed countries. The youth is a favorable demography for the group as it has made a drastic change from print media to digitized media and in further classifications, the youth is more into personal online media, which is exactly what is tapped into.

2.Increasing consumer trust across online marketplaces: Naspers invests in online trust and safety initiatives across the globe in a variety of ways. For example OLX has established trust and safety programme, in which with the help of advanced technology, different platforms are monitored, inappropriate listings are removed to gain and regain customer trust in online world. This helps in engaging the society with the company with a factor of truatworthiness and the company grows sustainably in the society.

3.Customer Satisfaction measured in Internet businesses: In the internet businesses, Naspers measure CSAT scores which is Customer Satisfaction scores to understand the efficiency of products and services in meeting customers’ expectations. It helps in creating a positive and strong customer-company relationship in the society. Satisfied customers are a major asset for the company. The CSAT scores tell the company the degree to which they are meeting customer expectations,so that it can change its strategies if it is hampering the society and hence not meeting expectations of the customers.

Technological

1.Impact of Artificial Intelligence in media and entertainment industry: Naspers is into the business from 1915 and is now one of the largest global internet and entertainment companies. It is continuously surrounded by technology and their innovations. The concept of Artificial intelligence (AI) is now slowly incorporating in businesses and carry huge potential for success. Naspers can increase their revenues, by collaborating with companies using such advanced techniques. Here, any early starter will give the company the first mover competitive advantage, which can be used by Naspers owing to its good market position. AI is used in platforms like Swiggy to know customer demands and trends and personalizing restaurant choices for customers, or in iFood, where it is used to cut down delivery times to consumers by relying on technology to know when and how and what the customer demand will be for a particular food item

2.Growth in e-commerce segment: The last financials results speak about the fact that Naspers is becoming a major player in Internet and e-commerce segments.The internet revenues grew by $15.9 billion which were mainly fuelled by e-commerce.The group benefitted from the positive sales effects of e-commerce. Payments systems, food delivery systems growth helped accelerate the e-commerce revenue growth of 25%. Such positive growths were only possible with increased use of technology and other online tools.Takealot, South Africa’s leading e-commerce company attracted great investments from Naspers.

Legal

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Environmental

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