Fortescue Metal Group SWOT Analysis, USP & Competitors

Fortescue Metal Group

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

Segment

Iron ore operation, Infrastructure, Expansion

Target Group

Iron & Steel making industries

Positioning

The safest, lowest cost and most profitable iron ore producer

Fortescue Metal Group SWOT Analysis

Strengths

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

Weaknesses

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

Opportunities

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

Threats

1. Existing competitors makes the competition stiffer

2. Challenging environmental sensitivities

3. Wet weather impacts production in pilbara

Fortescue Metal Group Competition

Competitors

1. BHP Billiton LTD
2. Rio Tinto Ltd

3. International Ferro Metals Ltd