Formosa Plastics SWOT Analysis, Competitors & USP

Formosa Plastics

Parent Company

Formosa Plastics Group

Category

Specialty chemicals, Plastics and Petrochemicals

Sector

Industrial Products and Chemicals

Tagline/ Slogan

Taiwan’s leading petrochemical manufacturer; You expect more and Formosa delivers

USP

One of the largest manufacturer of PVC in the world & largest manufacturer of petrochemicals in Taiwan

Formosa Plastics STP

Segment

Businesses which demand sustainable & good quality products with a high emphasis on saving costs.

Target Group

Businesses in the manufacture of commodities and chemicals like plastics, textiles, etc.

Positioning

Formosa Plastics is principally engaged in the manufacture and sale of plastic materials, textile products and fiber products.

Formosa Plastics SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Formosa Plastics. Strengths are:

1. Wide customer base spanning regions of Mainland China, Hong Kong, Macau, the Americas, Africa, Europe, Oceania, Japan, South Korea and Southeast China.
2. Large business division comprising of 3 petrochemical, plastics, rayon, nylon, textiles and engineering division.
3. One of Taiwan’s top petrochemical companies and the world’s no. 2 producer of Polyvinyl Chloride (PVC).

Weaknesses

Here are the weaknesses in the Formosa Plastics SWOT Analysis:

1. Market reach & network is very low, due to which alternate products are getting sold in the marketplace.
1. Limited global presence and lesser international penetration compared to some other big brands

Opportunities

Following are the Opportunities in Formosa Plastics SWOT Analysis:

1. Steadily growing Asian markets can be captured by undertaking process de-bottleneck and capacity expansion.
2. Can become a steady supplier for downstream operators in the region and work with them to make the products more competitive.
3. Distribution centers set-up in order to target the mainland China market.

4. Seek strategic alliances to gain access to marketing channels and expand the company’s market domain.

Threats

The threats in the SWOT Analysis of Formosa Plastics are as mentioned:

1. New technologies emerging in the world for the manufacture of petrochemicals.

2. Smaller players with access to Asian markets are creating intense competition for the company’s products.
3. Environmental regulations creating losses for the company, which has to look for alternate process for manufacture of its products.

Formosa Plastics Competition

Competitors

Below are the top 3 Formosa Plastics competitors:

1. BASF SE
2.Shin-Etsu Chemical Co. Ltd. (Japan)
3.Sinopec Shanghai Petrochemical Co. Ltd.