Salzgitter SWOT Analysis, USP & Competitors

Posted in Industrial Products and Chemicals, Total Reads: 770
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SWOT Analysis of Salzgitter with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Salzgitter

Parent Company

Salzgitter AG

Category

Iron & steel

Sector

Industrial products

Tagline/ Slogan

-

USP

Business activities are concentrated on steel and technology

STP

Segment

Flat carbon steel, sections, plates, tailored blanks, roof and wall elements, sheet piles

Target Group

Industries including automobile, energy, shipbuilding, construction, petroleum

Positioning

Preserving independence through profitability and growth

SWOT Analysis

Strengths

1. One of Europe’s leading steel and technology groups –with consistently performing sales

2. A high crude steel production capacity of approximately 9 million+ tons

3. Has a workforce of around over 25,000 employees

4. High exports as result of the changed parity of the euro against the US dollar, growth in external sales

5. Strong financial position and reputed market value

Weaknesses

1. Price transparency in the global market for iron ore has continued to deteriorate, it affects cost of production to great extent

2. High dependence on Europe but there is less demand for steel in automotive industry in Europe due to financial crisis

Opportunities

1. The upcoming fall may bring a recovery in steel demand and the implementation of urgently needed price increases

2. The international demand for German industrial goods will remain strong, hence opportunity to produce & sell more

3. Expansion plans in emerging economies

Threats

1. Risk arising from raw materials price volatility, particularly iron ore and coking coal whose deliveries are largely base on quarterly contracts

2. Contracts based on monthly pricing for coking coal will affect one third of the volume purchase by Salzgitter

3. The comparatively robust situation of Germany is also coming increasingly under pressure of contagion, against this backdrop many steel traders will replenish inventories

Competition

Competitors

1. Elopak AS
2. JFE Holdings Inc



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