Description
SWOT ANALYSIS OF FORTESCUE METAL GROUP

Fortescue Metal Group

Parent Company

Fortescue Metal Group

Category

Iron & Steel

Sector

Industrial products

Tagline/ Slogan

The new force in iron ore

USP

One of the World's leading producers of iron ore

STP

Segment

Iron ore operation, Infrastructure, Expansion

Target Group

Iron & Steel making industries

Positioning

The safest, lowest cost and most profitable iron ore producer

SWOT Analysis

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 Strength instruments

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 Weakness prices

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 Opportunity 3. Newer markets globally through expansion

1. Existing competitors makes the competition stiffer 2. Challenging environmental sensitivities Threats 3. Wet weather impacts production in pilbara

Competition

1. BHP Billiton LTD 2. Rio Tinto Ltd Competitors 3. International Ferro Metals Ltd



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