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Rentokil Initial SWOT and PESTLE Analysis

ID : 521073653| May 2023| 19 pages

COMPANY PROFILE -Rentokil Initial

Business Sector :Pest Control

Operating Geography :United Kingdom, Europe, Global

About Rentokil Initial :

Rentokil Initial is a business services company based in the United Kingdom. It is primarily focused on route-based services, such as pest control and hygiene, as well as a variety of smaller specialised services such as plants, medical services, property care, and specialist hygiene. The company is a constituent of the FTSE 100 Index and is traded on the London Stock Exchange. Harold Maxwell-Lefroy, Professor of Entomology at Imperial College, London, established the business in 1925. Rentokil, Initial, Steritech, and Ambius are the four global names under which the company's division operates. The company serves over a million consumers, ranging from multinational pharmaceutical, industrial and food manufacturing corporations to small businesses, restaurants, and private residences. The business employs 43,000 individuals in 83 countries, providing multi-national knowledge and expertise while maintaining the agility and characteristics of a local company. Rentokil Initial acquired Terminix in October 2022, making it the top pest control company in the world.

Rentokil Initial's USP is that it is the world's leading provider of commercial pest control services. The mission statement of the company reads, "Rentokil Initial provides services that protect people and enhance lives. We protect people from the dangers of pest-borne disease and the risks of poor hygiene. We enhance lives with services that protect the health and wellbeing of people, and the reputation of our customers' brands".

Rentokil Initial Revenue :


£ 2,956,6 million - FY ending 31st December 2021 (y-o-y growth 5.5%)
£ 2,823.5 million - FY ending 31st December 2020

Competitive Analysis of Rentokil Initial

SWOT
PESTLE
The SWOT analysis for Rentokil Initial is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Globally unmatched digital pest control platform
2. Global leader in pest control
3. Consistent performance through compound growth model
4. Leading commercial hygiene services provider
1. High accumulated bad debt due to exposure to loss making sectors
OpportunitiesThreats
1. Growing demand in air hygiene
2. Increased fear of pathogens increases disinfectants demand
3. Washroom cleanliness market to see growth
4. International expansion in the emerging markets
5. Strategic mergers & acquisitions to facilitate growth
1. Strong competition from regional full-service companies
2. Losses due to non-compliance with competition authority
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Rentokil Initial

Strength

1. Global leader in pest control: Rentokil operates market-leading businesses in pest control and hygiene across five regions using a reliable and effective operational model. In terms of digital and innovation, it led its industries. It has more than 1800 local service teams working in over 90 of the world's top 100 cities across North America, South America, Europe, the UK, Sub-Saharan Africa, Asia, MENAT, and the Pacific, covering 90% of the global GDP. 90% of the company's revenue, which it generates across 88 countries, comes from sources other than the UK. Compounding revenue, profit, and cash growth through organic growth and M&A are the main focuses of its business model for profitable growth. The key differentiators for Rentokil are its strong brand, global presence, cutting-edge products, and an operational structure that enables it to channel its collective expertise through its front-line service associates. The majority of its revenue comes from non-food sectors, where it continues to see increasing market penetration and growth opportunities. It serves all commercial sectors, but customers in the food processing, food service, and food retail sectors are the most notable given their statutory requirements for pest control services. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

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

Opportunity

1. Growing demand in air hygiene: As a result of the COVID-19 crisis, hygiene is no longer just viewed as a basic necessity but as an integral part of daily life. The Group is particularly interested in air care. By 2025, the global air care market is predicted to generate more than $90 billion in revenue and show a CAGR of 42%. There is no safe level of airborne pollutants, and 68% of all diseases are related to air pollution, according to the World Health Organization. As a result, more is being done to stop transmission by installing air purifiers that have undergone extensive testing or improving ventilation. The current Rentokil air care product line includes items for air sterilisation, air purification, and air scenting. Over 13,800 air purification units have been installed at customer locations in 40 different countries so far, bringing in about £9 million in revenue. In 2021, Rentokil actively promoted VIRUSKILLERTM in all of the regions, and they are now noticing rising customer interest and especially encouraging development in Italy, Spain, Hong Kong, Singapore, and the UK. Today, a variety of customers, including car showrooms, hotels, offices, venues, and UK embassies, purchase VIRUSKILLERTM. Thus, Rentokil is well positioned to cater to the rising demand and generate high revenues. The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

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

Major Competitors :

  • Orkin
  • Terminix
  • Anticimex
  • Ecolab
  • Massey Services
  • Rollins

Major Brands :

  • Rentokil
  • Initial
  • Ambius
  • Steriltech
  • Workwear
  • Ambius
  • Property Care
  • Dental Waste
  • Medentex
SWOT & PESTLE (combined)
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TABLE OF CONTENTS
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References used in Rentokil Initial SWOT & PESTLE Analysis Report

1. 2021 Annual Report - https://www.rentokil-initial.com/~/media/Files/R/Rentokil/documents/annual-reports/rentokil-initial-annual-report-2021.pdf
2. 2020 Annual Report - https://www.rentokil-initial.com/about-us/business-model.aspx
3. About Us - https://www.rentokil-initial.com/about-us/business-model.aspx
4. SURFACE DISINFECTANT MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 - 2026) - https://www.mordorintelligence.com/industry-reports/surface-disinfectant-market
5. Clear and considered legal news and insights - https://www.ashurst.com/en/news-and-insights/legal-updates/rentokil-fail-to-come-clean---penalty-for-inadequate-responses-to-information-requests/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Rentokil Initial SWOT and PESTLE analysis has been conducted by Mohit Harishchandra Deshmukh and reviewed by senior analysts from Barakaat Consulting.

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