Fortescue Metal Group SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 12, 2020

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

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

SWOT Analysis of Fortescue Metal Group

For Fortescue Metal Group, 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.

Fortescue Metal Group Strengths

The strengths of Fortescue Metal Group 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 Fortescue Metal Group :

1. A tenement land holding spread across the length and breadth of the resource rich Pilbara region of Western Australia

2. A close proximity to the world’s major growth markets of China and Asia

3. World's largest producers and sea-borne traders of iron ore

4. Export has increased rapidly over the years reaching over 40 Million tonnes

5. Good fund raising ability by issuance of different financial instruments

Fortescue Metal Group 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 Fortescue Metal Group SWOT Analysis:

1. Dropping of plans due to fluctuations & weaknesses in credit market conditions

2. Chinese steel mills have begun cutting production as record stockpiles continue to build, signaling further weakness for iron ore prices


Fortescue Metal Group 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 Fortescue Metal Group SWOT Analysis:

1. Expansion to increase capacity to 155mtpa will improve exports & market share

2. China’s import of iron ore will climb to 1 billion tonnes

3. Newer markets globally through expansion

Fortescue Metal Group 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 Fortescue Metal Group are as mentioned:

1. Existing competitors makes the competition stiffer

2. Challenging environmental sensitivities

3. Wet weather impacts production in pilbara


Fortescue Metal Group Competitors

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

1. BHP Billiton LTD
2. Rio Tinto Ltd

3. International Ferro Metals Ltd

Hence this concludes the Fortescue Metal Group SWOT analysis.

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About Fortescue Metal Group

Fortescue Metal Group Overview
Parent Company

Fortescue Metal Group

Category

Iron & Steel

Sector

Industrial Products and Chemicals

Tagline/ Slogan

The new force in iron ore

USP

One of the World's leading producers of iron ore

Fortescue Metal Group STP
Segmentation

Iron ore operation, Infrastructure, Expansion

Target Market

Iron & Steel making industries

Positioning

The safest, lowest cost and most profitable iron ore producer


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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