Description
SWOT ANALYSIS OF POTASH OF SASKATCHEWAN

Potash of Saskatchewan

Parent Company

Potash Corporation of Saskatchewan Inc.

Category

Crop nutrients

Sector

Industrial products

Tagline/ Slogan

Helping Nature Provide

The world’s largest fertilizer company in terms of capacity and the USP largest producer of potash in the world.

STP

Segment

Businesses catering to agricultural and industrial products.

Businesses in the manufacture of fertilizers, livestock feed and Target Group industrial goods.

PotashCorp is an international enterprise and a key player in meeting Positioning the growing challenge of feeding the world.

SWOT Analysis

1. Low cost producer with a huge market share of the world capacity and majority of world’s excess capacity 2. Manufacturing is relatively cheaper than competitors 3. Access to key markets through Canadian operations, a global distribution network and strategic offshore investments. 4. Headquartered in Saskatchewan, the region with the most potash supply in the world. 5. Leading player in the market, ability to add capacity like a November 2007 announcement of a $1.8 billion mine and mill expansion that has boosted output of company 6. New output will be low-cost, tax-efficient, and less than building an all-new mine and mill Strength 7. Significant pricing power as demand exceeds supply

1.Potential mine failures can disrupt production, as witnessed in competitor Silvinit’s Russian mine. 2. Reliance on natural resources to produce output Weakness 3. Financial debt is an area of worry

1.Operates in industry resistant to recessions 2. Constant and increasing global demand for fertilizer. 3. Global population expected to increase 4. High barriers to entry: $2 billion cost to construct a potash plant, takes years to begin producing fertilizer. 5. Profiting from the Ethanol boom amidst record high oil prices and outcry for cleaner energy. 6. Emergence of developing countries from poverty, increasing demand Opportunity for basic foodstuffs

1.Political turmoil from operating in foreign nations. 2. Domestic politics regarding the Ethanol industry – including potential subsidies, incentives. 3. Competition from international corporations building new mines and Threats oversupplying the market.

Competition

1.The Mosaic Co. 2. BASF SE Competitors 3. Yara International ASA



doc_656083288.docx
 

Attachments

Back
Top