Order custom Harvard Business Case Study Analysis & Solution. Starting just $19
Fern Fort University
Lynas Corporation Limited SWOT Analysis / Matrix
Business Essays, Term Papers & Research Papers
SWOT analysis is a strategic planning tool that can be used by Lynas Corporation Limited managers to do a situational analysis of the firm . It is a handy technique to map out the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Lynas Corporation Limited is facing in its current business environment.
The Lynas Corporation Limited is one of the leading firms in its industry. Lynas Corporation Limited maintains its dominant position in market by carefully analyzing and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires effective coordination among various departments within the organization such as – marketing, finance, operations, management information systems and strategic planning.
Order Now - Lynas Corporation Limited SWOT Analysis
Check out- Lynas Corporation Limited PESTEL / PEST & Environment Analysis
Article continues after advertisement
The SWOT Analysis framework helps an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to a 2X2 matrix – also known as SWOT Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix enables the managers of the Lynas Corporation Limited to develop four types of strategies:
- SO (strengths-opportunities) Strategies
- WO (weaknesses-opportunities) Strategies
- ST (strengths-threats) Strategies
- WT (weaknesses-threats) Strategies
SWOT Matrix Strategies Objective
The central purpose of SWOT matrix is to identify the strategies that a company can utilize to exploit external opportunities, counter threats, and build on & protect Lynas Corporation Limited strengths, and eradicate its weaknesses.
Step by Step Guide to Lynas Corporation Limited SWOT Analysis
Strengths of Lynas Corporation Limited – Internal Strategic Factors
As one of the leading organizations in its industry, Lynas Corporation Limited has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of Lynas Corporation Limited are –
Read - Lynas Corporation Limited Porter 5 Forces Analysis & Industry Analysis
Article continues after advertisement
- Highly skilled workforce through successful training and learning programs. Lynas Corporation Limited is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more.
- Automation of activities brought consistency of quality to Lynas Corporation Limited products and has enabled the company to scale up and scale down based on the demand conditions in the market.
- Successful track record of integrating complimentary firms through mergers & acquisition. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain.
- Successful track record of developing new products – product innovation.
- Strong Free Cash Flow – Lynas Corporation Limited has strong free cash flows that provide resources in the hand of the company to expand into new projects.
- Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.
- Highly successful at Go To Market strategies for its products.
- Strong Brand Portfolio – Over the years Lynas Corporation Limited has invested in building a strong brand portfolio. The SWOT analysis of Lynas Corporation Limited just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.
Weakness of Lynas Corporation Limited – Internal Strategic Factors
Weakness are the areas where Lynas Corporation Limited can improve upon. Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
Article continues after advertisement
- Not highly successful at integrating firms with different work culture. As mentioned earlier even though Lynas Corporation Limited is successful at integrating small companies it has its share of failure to merge firms that have different work culture.
- The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.
- Investment in Research and Development is below the fastest growing players in the industry. Even though Lynas Corporation Limited is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based on tested features in the market.
- Days inventory is high compare to the competitors – making the company raise more capital to invest in the channel. This can impact the long term growth of Lynas Corporation Limited
- High attrition rate in work force – compare to other organizations in the industry Lynas Corporation Limited has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
- The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. Lynas Corporation Limited has to build internal feedback mechanism directly from sales team on ground to counter these challenges.
- There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market.
Opportunities for Lynas Corporation Limited – External Strategic Factors
Article continues after advertisement
- Decreasing cost of transportation because of lower shipping prices can also bring down the cost of Lynas Corporation Limited’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share.
- The market development will lead to dilution of competitor’s advantage and enable Lynas Corporation Limited to increase its competitiveness compare to the other competitors.
- New environmental policies – The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for Lynas Corporation Limited to drive home its advantage in new technology and gain market share in the new product category.
- Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
- Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided Lynas Corporation Limited an opportunity to enter a new emerging market.
- Lower inflation rate – The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Lynas Corporation Limited.
- Government green drive also opens an opportunity for procurement of Lynas Corporation Limited products by the state as well as federal government contractors.
- Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for Lynas Corporation Limited to capture new customers and increase its market share.
Threats Lynas Corporation Limited Facing - External Strategic Factors
- Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
- New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories .
- Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for Lynas Corporation Limited in those markets.
- Rising raw material can pose a threat to the Lynas Corporation Limited profitability.
- Liability laws in different countries are different and Lynas Corporation Limited may be exposed to various liability claims given change in policies in those markets.
- Intense competition – Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales.
- As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world.
- New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future.
Limitations of SWOT Analysis for Lynas Corporation Limited
Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations.
- Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.
- SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself.
- The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of Lynas Corporation Limited
- SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
- SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.
Article continues after advertisement
Weighted SWOT Analysis of Lynas Corporation Limited
In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers decided to provide weightage to each internal strength and weakness of the firm. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.
This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis because with Weighted SWOT Analysis Lynas Corporation Limited managers can focus on the most critical factors and discount the non-important one. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.
Limitation of Weighted SWOT analysis of Lynas Corporation Limited
This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.
Buy Custom Essay and Term Paper on SWOT Analysis / Matrix , Weighted SWOT Analysis of Lynas Corporation Limited
Example of Weighted SWOT Analysis
You can email us to get an example document of Weighted SWOT analysis.
SWOT Worksheet & Template
If you like to do your own SWOT analysis or want to make your own Weighted SWOT SWOT matrix then feel free to download Fern Fort University SWOT Analysis Template.
References / Citations & Bibliography
- M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
- A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
- O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975);
- L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)
- R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
Order Now
Previous 5 SWOT Analysis
- Luiri Gold Limited SWOT Analysis
- Lucapa Diamond Company Limited SWOT Analysis
- Longford Resources Limited SWOT Analysis
- Lodestar Minerals Limited SWOT Analysis
- Living Cities Development Group Limited SWOT Analysis
Next 5 SWOT Analysis
- Maca Limited SWOT Analysis
- Macphersons Resources Limited SWOT Analysis
- Magmatic Resources Limited SWOT Analysis
- Magnetic Resources Nl SWOT Analysis
- Magnetite Mines Limited. SWOT Analysis
HBR Case Studies Solutions
- Block 16: Conoco's "Green" Oil Strategy (B) case study solution
- Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure case study solution
- Barry Riceman at NetD (A) case study solution
- Eli Lilly and Co.: Manufacturing Process Technology Strategy--1991, Spanish Version case study solution
- Redhook Ale Brewery case study solution