Published in Food & Beverages category by MBA Skool Team
Archer Daniels Midland is one of the leading brands in the food & beverages sector. Archer Daniels Midland SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of Archer Daniels Midland:
Comprehensive global research-and-development network which includes state-of-the-art culinary center& equipment, advanced pilot plants and laboratories worldwide.
Online services especially the e-ADM platformthat enables customers to cost effectively manage their business with automatic inventory monitoring and ordering, online payments, product and ingredient searches, logistics management and reporting.
ADM Cocoa markets its products under the well-respected brands Ambrosia, De Zaan and Merckens, there are other brands known and respected around the globe within other product categories as well.
Possesses significant barriers to entry that slows competitive threats and increases profits
ADM Logistics is a leader in supply chain solutions with access to one of the most far-reaching transportation networks in the world.
Robust financial performance over the years
One of the companies that truly enjoys the benefits of the "farm" subsidies enabling it to obtain cornseeds, etc. at cheap rates
A member of more than 200 business and trade associations.
Above are the strengths in the SWOT Analysis of Archer Daniels Midland. The strengths of Archer Daniels Midland looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Archer Daniels Midland Weaknesses
The business is exposed to volatility in commodity prices
Higher energy and raw material prices are negatively impacting production costs in the ingredients industry.
There is a reduced demand for products with synthetics in colors, flavor enhancers, preservatives, anti-oxidants and also artificial sweeteners. This will affect sales of some of ADM’s product offerings.
These were the weaknesses in the Archer Daniels Midland SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Archer Daniels Midland Opportunities
Investment in GrainCorpwill help grow their Agricultural Services and Oilseeds businesses by investing in key supply regions outside the United States
New partnerships with Wilmar International will help strengthen ADM’s global marketing reach, while delivering a best-in-class service to the customers
The health and wellness market offers opportunities, with a demand for natural and scientifically proven ingredients.
There are also new opportunities in some categories, as suppliers look to develop cheaper alternatives to costly ingredients. For example, as cocoa prices continue to fluctuate, cheaper alternatives such as cocoa butter equivalents are becoming a popular alternative.
Above we covered the opportunities in Archer Daniels Midland SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Archer Daniels Midland Threats
Fluctuations in prices of fuels and energy products can have adverse effects on the company’s production costs and profitability
Markets within which it operates are highly competitive
Vulnerable to development of new substitution products
Use of GMOs is against the regulations of governments in certain countries so it faces a risk of losing markets in these nations
The threats in the SWOT Analysis of Archer Daniels Midland are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Manufacturers around the world who use the food ingredients, animal feeds and feed ingredients, biofuels and other products produced by ADM
Emphasizes the advantages of the company's close, one-on-one relationships with farmers combined with its expertise and global resources.
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