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Nippon Steel Corp. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Nippon Steel Corp.

Nippon Steel Corporation (Nippon Steel) is one of the largest integrated steel makers in the world.  The company's operations include steel making, engineering, construction, chemicals, new materials, system solutions, and urban development. The company primarily operates in Japan. It is headquartered in Tokyo, Japan and employs about 15,100 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Technological competitiveness
  • Strong market position
  • Robust financial growth

Weaknesses

  • Concentration of operations
  • Fluctuating margins

External

Opportunities

  • Alliance with USIMINAS
  • Expansion of operations in Asia
  • Plans of increasing the annual production capacity

Threats

  • Consolidation in the global steel industry
  • Natural disasters
  • Rising environmental concern
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