Description
SWOT ANALYSIS OF KUMHO PETROCHEMICAL

Kumho Petrochemical

Parent Company

Korea Synthetic Rubber Industries

Category

Industrial Products

Sector

Diversified chemicals

Tagline/ Slogan

Beyond the best

USP

World's largest synthetic rubber and resin makers

STP

Segment

Synthetic rubbers, synthetic resins and others

Target Group

Resins, rubbers, chemicals, electronic and building materials

Positioning

High end environment friendly product providers

SWOT Analysis

1. Offers a wide variety of product portfolio thereby offering a insulation against fluctuating demand cycles that exists in the industry 2. Regained independence to take management decisions, from creditors by signing MO U with creditors 3. The company has operational presence in South Korea, the US, Indonesia, Germany and China. 4. Business strategy backed by rigorously tested risk management capabilities Strength 5. Nearly 1500 people work with the organisation

1. Growth challenged due to the Eurozone's inability to find a clear resolution to its unfolding financial crisis, which is expected to prolong the current economic sluggishness 2. The profit margin has been greatly affected due to the increase in competition in the industry 3. Anti-dumping concerns raised against the company has tarnished the Weakness image of the company in the view of the stake holders

1. The expanding capacity of the plants provides scope for the company to cater to growing demands in the rubber industry Opportunity 2. Sustained investment in new product development has also

contributed to the energizing of related industries and product portfolio 3. Awarded the “Environmentally Friendly Company” by the Ministry of Environment providing the environmental backing to stand against the stringent rules in industry in future

1. Rise in demand for the raw material of rubber industry has made them costlier and scarcely available 2. The continuous reduction in profit margin may push the company out of business 3. The company is more focused on rubber and resin products thus Threats making the company susceptible to risk of reduction in demand

Competition

1. The Dow Chemical Company 2. BASF SE Competitors 3. Hyundai Corporation



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