Description
SWOT ANALYSIS OF MECHEL
Mechel
Parent Company
Mechel OAO
Category
Iron & steel
Sector
Industrial products
Tagline/ Slogan
-
USP
Low-cost fully integrated mining and steel company
STP
Segment
Mining, steel, ferroalloy and power
Target Group
Automotive, construction, packaging, home appliances, capital goods
Positioning
Ensures steady growth
SWOT Analysis
1. Global presence with production facilities in 13 of Russia’s regions, US, UK etc. 2. Comprised of over 30 production enterprises, producing coal, iron ore concentrate, steel and electric power 3. One of the world’s top seven metallurgical coal producers (excluding Chinese producers) 4. Leader among Russian industries Strength 5. Has a workforce of nearly 85,000 employees
1. Mining operations are hit by weaker demand and lower prices Weakness 2. High dependence on forex fluctuations affects operational efficiency
1. Expanding mining business, both through organic growth and acquisitions 2. Improving profitability in steel segment through plant modernization, cost cutting and product portfolio optimization 3. Improving performance of power segment and expanding Opportunity international sales structure
Threats
1. Losing mining license for its key assets due to major violations
discovered by the Russian Ministry of Natural Resources 2. Stiff competition across its businesses 3. Increase in electricity costs, railway transportation, natural gas and labor along with effects of inflation
Competition
1. Evraz group 2. Severstal Competitors 3. MMK
doc_277297961.docx
SWOT ANALYSIS OF MECHEL
Mechel
Parent Company
Mechel OAO
Category
Iron & steel
Sector
Industrial products
Tagline/ Slogan
-
USP
Low-cost fully integrated mining and steel company
STP
Segment
Mining, steel, ferroalloy and power
Target Group
Automotive, construction, packaging, home appliances, capital goods
Positioning
Ensures steady growth
SWOT Analysis
1. Global presence with production facilities in 13 of Russia’s regions, US, UK etc. 2. Comprised of over 30 production enterprises, producing coal, iron ore concentrate, steel and electric power 3. One of the world’s top seven metallurgical coal producers (excluding Chinese producers) 4. Leader among Russian industries Strength 5. Has a workforce of nearly 85,000 employees
1. Mining operations are hit by weaker demand and lower prices Weakness 2. High dependence on forex fluctuations affects operational efficiency
1. Expanding mining business, both through organic growth and acquisitions 2. Improving profitability in steel segment through plant modernization, cost cutting and product portfolio optimization 3. Improving performance of power segment and expanding Opportunity international sales structure
Threats
1. Losing mining license for its key assets due to major violations
discovered by the Russian Ministry of Natural Resources 2. Stiff competition across its businesses 3. Increase in electricity costs, railway transportation, natural gas and labor along with effects of inflation
Competition
1. Evraz group 2. Severstal Competitors 3. MMK
doc_277297961.docx