Archer Daniels Midland SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 29, 2020

SWOT analysis of Archer Daniels Midland analyses the brand by its strengths, weaknesses, opportunities & threats. In Archer Daniels Midland SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Archer Daniels Midland to benchmark its business & performance as compared to the competitors. Archer Daniels Midland is one of the leading brands in the food & beverages sector.

The article below lists the Archer Daniels Midland SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Archer Daniels Midland SWOT Analysis:

SWOT Analysis of Archer Daniels Midland

For Archer Daniels Midland, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Archer Daniels Midland Strengths

The strengths of Archer Daniels Midland looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Archer Daniels Midland :

1. Comprehensive global research-and-development network which includes state-of-the-art culinary center& equipment, advanced pilot plants and laboratories worldwide.
2. 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.
3. 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.

4.Possesses significant barriers to entry that slows competitive threats and increases profits

5. ADM Logistics is a leader in supply chain solutions with access to one of the most far-reaching transportation networks in the world.

6. Robust financial performance over the years

7.  One of the companies that truly enjoys the benefits of the "farm" subsidies enabling it to obtain cornseeds, etc. at cheap rates

8. A member of more than 200 business and trade associations.

Archer Daniels Midland Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Archer Daniels Midland SWOT Analysis:

1. The business is exposed to volatility in commodity prices
2. Higher energy and raw material prices are negatively impacting production costs in the ingredients industry.
3. 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.


Archer Daniels Midland Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Archer Daniels Midland SWOT Analysis:

1.Investment in GrainCorpwill help grow their Agricultural Services and Oilseeds businesses by investing in key supply regions outside the United States
2.New partnerships with Wilmar International will help strengthen ADM’s global marketing reach, while delivering a best-in-class service to the customers
3.The health and wellness market offers opportunities, with a demand for natural and scientifically proven ingredients.

4. 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.

Archer Daniels Midland Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Archer Daniels Midland are as mentioned:

1. Fluctuations in prices of fuels and energy products can have adverse effects on the company’s production costs and profitability
2.Markets within which it operates are highly competitive

3. Vulnerable to development of new substitution products
4. Use of GMOs is against the regulations of governments in certain countries so it faces a risk of losing markets in these nations


Archer Daniels Midland Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Archer Daniels Midland:

1. Bunge Limited
2. Cargill Incorporated
3. Ingredion Incorporated

Hence this concludes the Archer Daniels Midland SWOT analysis.

Continue reading more about the brand/company.

About Archer Daniels Midland

Archer Daniels Midland Overview
Parent Company

Archer Daniels Midland Company

Category

Food Processing& Commodities Trading

Sector

Food & Beverages

Tagline/ Slogan

Supermarket to the world; Resourceful by Nature

USP

ADM connects the harvest to the home

Archer Daniels Midland STP
Segmentation

Oilseed Processing, Corn Processing, Agricultural Services, Food,Feed Ingredient and Financial activities

Target Market

Manufacturers around the world  who use the food ingredients, animal feeds and feed ingredients, biofuels and other products produced by ADM

Positioning

Emphasizes the advantages of the company's close, one-on-one relationships with farmers combined with its expertise and global resources.


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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