Description
SWOT ANALYSIS OF SAUDI ARABIAN FERTILIZER COMPANY

Saudi Arabian Fertilizer Company (SAFCO)

Parent Company

Saudi Arabian Basic Industries Corporation (SABIC)

Category

Specialized Chemicals / Petrochemicals

Sector

Industrial Products

Tagline/ Slogan

Chemistry that matters

Market leader in the manufacture of Petrochemicals and specialized USP chemicals in Saudi Arabia

STP

Businesses and customers looking for customized and top quality Segment products, spread across the Middle East and Europe.

Target Group

Businesses catering to production of fertilizers and industrial products.

Positioning

First petrochemical company in Saudi Arabia.

SWOT Analysis

1. Good financial stability with year-on-year growth for the past 6-7 years 2. Set-up of Jubail Industrial City consisting of 7 factories with an overall capacity of 5.3 million metric tonnes 3. Urea plant contributing to agricultural development of Saudi Arabia. 4. Customer loyalty increasing day-by-day Strength 5. Current market capital of the company is good

1. Diversity of income sources leads to fluctuations in the stability of cash flows to the company. 2. Labor strikes in the past have led to massive changes in the Weakness management, which has resulted in poor productivity.

1. Mergers with Ibn Al-Baytar (National Chemical Fertilizer) for creating financial independence for both the companies. 2.Joint ventures with SABAYEK and Yansab in order to capture different markets and extend partnerships beyond their boundaries. 3. Grant of government’s shares to the workforce has come as a great Opportunity motivator for improved productivity and growth.

Threats

1. Emergence of substitutes for the company’s products has decreased

demand for their products. 2. Increasing competition from local as well as international players. 3. Environmental regulations against certain fertilizer manufacture practices

Competition

1. Gujarat State Fertilizers and Chemicals Ltd 2. Yara International ASA Competitors 3. Acron



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