Description
SWOT ANALYSIS OF CLIFFS NATURAL RESOURCES

Cliffs Natural Resources

Parent Company

Cliffs Natural Resources Inc

Category

Iron & Steel

Sector

Industrial products

Tagline/ Slogan

NA

A major global iron ore producer and a significant producer of high- and USP low-volatile metallurgical coal

STP

Segment

Iron ore, high- and low-volatile metallurgical coal, Ferroalloys

Target Group

Steel producers, energy industry, corporates

Achieving greater scale and diversi?cation in the mining industry through a focus on serving the world’s largest and fastest growing steel Positioning markets

SWOT Analysis

1. Market share leadership in the industry 2. Largest iron ore producer in North America through Consolidated Thompson acquisition in Canada, with some better quality assets through Portman in Australia 3. Sales are more focused on Asia for the future 4. Supply chain is well developed and mature, directly with steel company users Strength 5. Strong financial position and good brand value

1. Not as diversified as some industry players Weakness 2. Still hasn't tapped emerging economies for business

1. Possible mergers with some West African DSO sources 2. Emergence into Chinese market allows for Cliffs to acquire large market share by lowering prices to undercut established powers. 3. Incorporating recent acquisition of Consolidated Thompson can Opportunity provide Cliffs with large ore reserves and better penetration in China

1. Uncertainty or weaknesses in global economic conditions and reduced economic growth in China 2. Negative economic conditions may adversely impact the ability of customers to meet their obligations Threats 3. Unfavorable Govt policies

Competition

1. Alpha Natural Resources, Inc. 2. BHP Billiton Ltd Competitors 3. Baffinland Iron Land Corporation



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