Formosa Plastics SWOT Analysis, Competitors & USP

SWOT analysis of Formosa Plastics analyses the brand by its strengths, weaknesses, opportunities & threats. In Formosa Plastics 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 Formosa Plastics to benchmark its business & performance as compared to the competitors. Formosa Plastics is one of the leading brands in the industrial products and chemicals sector.

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

SWOT Analysis of Formosa Plastics

For Formosa Plastics, 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.

Formosa Plastics Strengths

The strengths of Formosa Plastics 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 Formosa Plastics :

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).

Formosa Plastics 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 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

Formosa Plastics 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 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.

Formosa Plastics 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 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 Competitors

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

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

Hence this concludes the Formosa Plastics SWOT analysis.

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About Formosa Plastics

Formosa Plastics Overview
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
Segmentation	Businesses which demand sustainable & good quality products with a high emphasis on saving costs.
Target Market	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.

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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