Potash of Saskatchewan SWOT Analysis, USP & Competitors

Posted in Industrial Products and Chemicals, Total Reads: 1675
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SWOT Analysis of Potash of Saskatchewan with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Potash of Saskatchewan

Parent Company

Potash Corporation of Saskatchewan Inc.

Category

Crop nutrients

Sector

Industrial products

Tagline/ Slogan

Helping Nature Provide

USP

The world’s largest fertilizer company in terms of capacity and the largest producer of potash in the world.

STP

Segment

Businesses catering to agricultural and industrial products.

Target Group

Businesses in the manufacture of fertilizers, livestock feed and industrial goods.

Positioning

PotashCorp is an international enterprise and a key player in meeting the growing challenge of feeding the world.

SWOT Analysis

Strengths

1. Low cost producer with a huge market share of the world capacity and majority of world’s excess capacity
2. Manufacturing is relatively cheaper than competitors
3. Access to key markets through Canadian operations, a global distribution network and strategic offshore investments.
4. Headquartered in Saskatchewan, the region with the most potash supply in the world.

5. Leading player in the market, ability to add capacity like a November 2007 announcement of a $1.8 billion mine and mill expansion that has boosted output of company

6. New output will be low-cost, tax-efficient, and less than building an all-new mine and mill

7. Significant pricing power as demand exceeds supply

Weaknesses

1.Potential mine failures can disrupt production, as witnessed in competitor Silvinit’s Russian mine.

2. Reliance on natural resources to produce output

3. Financial debt is an area of worry

Opportunities

1.Operates in industry resistant to recessions

2. Constant and increasing global demand for fertilizer.

3. Global population expected to increase

4. High barriers to entry: $2 billion cost to construct a potash plant, takes years to begin producing fertilizer.

5. Profiting from the Ethanol boom amidst record high oil prices and outcry for cleaner energy.

6. Emergence of developing countries from poverty, increasing demand for basic foodstuffs

Threats

1.Political turmoil from operating in foreign nations.

2. Domestic politics regarding the Ethanol industry – including potential subsidies, incentives.

3. Competition from international corporations building new mines and oversupplying the market.

Competition

Competitors

1.The Mosaic Co.
2. BASF SE
3. Yara International ASA



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