IOI Group SWOT Analysis, Competitors & USP

IOI Corporation Berhad

Food Processing

Food & Beverages

People first, performance now

Providing customers with products and services that exceed their expectations

Business segments: Plantation, Real Estate Development, Manufacturing of oleochemicals and specialty fats& Refineries

Food manufacturing industry, Industrial & Consumer Food catering industry

Providing products & services of superior values

Below are the Strengths in the SWOT Analysis of IOI Group:

1. Development of agri-science and technology to improve crop and oil yields to meet increasing global demands

2. Integrated business model from plantation to specialty fats and oleochemicals

3. Operates on a multi-stakeholder format which involves strict principles and criteria covering the social and environmental requirements for the production and use of sustainable palm oil.
4. Crude Palm Oil prices have trended higher and are relatively stable yearon-year, supported by the growing demand for vegetable oils as well as emerging demand from the biofuel sector

5. Employs more than 30,000 personnel of more than 23 different nationalities in 15 countries.

Here are the weaknesses in the IOI Group SWOT Analysis:

1.Uncertainties in the form of commodities price risk, credit risk, foreign exchange risk and interest rate risk.
2.Manpower constraints, pressure on increasing operating costs and extreme weather in the plantation division
3.Palm oil industry faces huge number of unresolved land conflicts due to land grabbing

Following are the Opportunities in IOI Group SWOT Analysis:

1.Demand for palm oil would remain strong as consumption increases in select emerging economies coupled with the general global population growth
2.Expansion into Indonesia is through the acquisitions of interest in oil palm estates
3.Emerging biofuel market

The threats in the SWOT Analysis of IOI Group are as mentioned:

1.Economic crisis in the Eurozone and the global economic slowdown result in lower global trade and investments
2.In the refinery and specialty fats sub-segmentsstiff competition posed by the Indonesian resource-based manufacturers which have a cost advantage due to Indonesia’s preferential export duty tariff structure

3. Unfavorable legislation and government policies are constant threats

Below are the top 3 competitors of IOI Group:

1. Wilmar International Ltd and

2. PT Sinar Mas Agro Resources Tbk

3. Felda Group