Iluka Resources SWOT Analysis, USP & Competitors

Posted in Heavy Equipment & Engineering, Total Reads: 534
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SWOT Analysis of Iluka Resources with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Iluka Resources

Parent Company

Iluka Resources Limited

Category

Mining and minerals

Sector

Heavy metals and minerals

Tagline/ Slogan

-

USP

Largest producer of the high-grade titanium dioxide

STP

Segment

Industrial segmentation

Target Group

Heavy metal alloy companies, integrated steel organizations , Ship building organizations , diverse metals across the world,

Positioning

A distinct organizations with unique products with strong commitment towards shareholders

SWOT Analysis

Strengths

1. Involved in mineral sands exploration,  project development, operations and marketing.
2. The company is the major producer of zircon globally and largest producer of the high-grade titanium dioxide products of rutile and synthetic rutile, with operations in Australia and Virginia, USA.
3. The company has a royalty associated with a tier one iron ore operation – BHP Billiton’s Mining Area C province in Western Australia.
4. Supplier strategy involves online auctions and sales

5. Global Marketing, logistics and distribution network
6. Future plans involve expanding office and warehouse locations, Global exploration, Product technical development

7. Employee strength of 1,000+
8. Site –specific safety standards including community engagement, health and environment

Weaknesses

1. Primary weaknesses are the relatively short reserve life and cyclical demand 
2. High fixed prices and operational costs.
3. Non sustained client ordering pattern leading to difficulty in fulfillment of company’s commitment to investors

Opportunities

1. Iluka's margins are strong relative to the industry, due to high-grade deposits weighted to higher-value products--zircon and rutile, stressing the opportunity to be the market leader in these metals
2. Reserve life is shorter than we would like at around 10 years, converting resources to reserves by drilling out, advancing and developing new deposits is future opportunity for it
3. Lower-grade resources are likely to become economic over time as the industry mines the best deposits and average grades fall.

Threats

1. Threat of lower commodity prices and volumes. 
2. Prices for zircon, rutile and synthetic rutile drive much of the fair value estimate. The key risk to cash flows is a slowdown in world growth and the consequent impact on prices and volumes
3. There is risk exploration spending will be value destructive leading to increased expense and lower profits

Competition

Competitors

1.  BHP Billiton
2. PanAust
3. Rio Tinto



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