The paper “ SWOT Analysis of Fortescue Metal Group Limited" is a spectacular example of a case study on management. A lot of business firms with the objective of achieving a competitive advantage for giant firms in the industry need to regularly analyze all the aspects of the company’ s operations and the stratagems. This is the only single method that the company has a chance of healthy competition in the market. This is the only way that the company stands a chance of competing healthily in the market. SWOT analysis has been used by many companies since it can help a company expand its future plans.
This is only achievable through reviewing the firm’ s strengths, weaknesses, opportunities, and threats. This is vital because the SWOT analysis explores and puts into consideration both internal and external issues as an entity to each company. For example, in this case, Fortescue metal group limited or other companies are required to consider trade explicit factors to assist them in conducting fruitful business analysis. Figure 5 shows the internal and external analysis of Fortescue and threats, opportunities, weaknesses and strengths are identified. SO Strategies Exploit new resources in Pilbara Due to the rich resources that are available in Pilbara, the company is able to abolish farming at the time and focus on the resources as through the resources, the firm will be able to increase production and manage the high demand for products that they have.
Increase in foreign investment. The strategy of exploiting more resources will also enable the company to increase foreign investment as there will be a production of more goods when exploitation is carried out and resources increased. The company has close proximity to the global growth market of Asia and China. The company’ s target is mainly China.
The economy of Australia and its mining States have really grown due to the strength of the Chinese Economy. The close proximity is as a result of the modernization and growth of the Chinese economy. Become the global larger traders and producers of iron ore. Due to the growth and modernization of the Chinese economy, the global market has had a greater demand for coal and iron ore of Australia.
As a result, a greater demand has been created on the company’ s product. This has therefore facilitated the company to grow its products across the market. WO strategies Lower capital intensity Lowering of capital intensity in the company will enable management of the company’ s weakness of high capital intensives. The lowering is conducted through the abolishment of both mining and carbon taxes. When the taxes are lowered, the company will be able to well manage the lower rates hence reducing the problem of poor cost management. Increasing the import of iron ore from China The company strategizes to increase their import by expanding and increasing their capacity of the company to greater heights thus improving market share and export ST strategies Increase production of the brand. The strategy of increasing productivity of the demand in the company will be carried out by the company focusing on the resources that are available in the Pilbara region and also taking advantage of the low prices of iron.
A combination of the two aspects will lead to an increase in the production of the brand hence will also lead to high recognition of the brand in the markets where it is sold.
The management of the company through the strategy will be made simple. To increase the export rapidly in the coming years to over 30 million tones. The company strategizes this in order to have a perfect fundraising capability by issuing various financial instruments. WT strategies Capital intensity reduction The reduction of capital intensity used in the company is aimed at reducing the effects ion the company that comes as a result of poor management of costs. The reduction is done in the Chinese economy due to the slowdown in the economy.
The reduction of capital intensity in the Chinese economy will leave the company with capital that it will be able to well handle. This factor results in tom increased competitive advantage as there will be little wastage of resources. Expand the newer market of the company globally The company can only do this by increasing their promotion to other countries and come up with product differentiation with the help of dynamic technology.