Mechel SWOT Analysis, USP & Competitors

Posted in Industrial Products and Chemicals, Total Reads: 720

SWOT Analysis of Mechel with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis


Parent Company

Mechel OAO


Iron & steel


Industrial products

Tagline/ Slogan



Low-cost fully integrated mining and steel company



Mining, steel, ferroalloy and power

Target Group

Automotive, construction, packaging, home appliances, capital goods


Ensures steady growth

SWOT Analysis


1. Global presence with production facilities in 13 of Russia’s regions, US, UK etc.

2. Comprised of over 30 production enterprises, producing coal, iron ore concentrate, steel and electric power

3. One of the world’s top seven metallurgical coal producers (excluding Chinese producers)

4. Leader among Russian industries

5. Has a workforce of nearly 85,000 employees


1. Mining operations are hit by weaker demand and lower prices

2. High dependence on forex fluctuations affects operational efficiency


1. Expanding mining business, both through organic growth and acquisitions

2. Improving profitability in steel segment through plant modernization, cost cutting and product portfolio optimization

3. Improving performance of power segment and expanding international sales structure


1. Losing mining license for its key assets due to major violations discovered by the Russian Ministry of Natural Resources

2. Stiff competition across its businesses

3. Increase in electricity costs, railway transportation, natural gas and labor along with effects of inflation



1. Evraz group
2. Severstal
3. MMK


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