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Tyson Foods (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.”

Tyson Foods 

Tyson Foods (Tyson) is the world’s largest processor and marketer of chicken, beef and pork products and the second largest food production company in the Fortune 500 list. The company commands 24%, 25% and 17% market share of the US chicken, beef and pork production respectively. Strong market position increases the bargaining power of the company in the market and gives it an edge over its competitors. However, the increasing popularity of vegetarian food could have a negative impact on the company’s poultry and meat sales.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Broad and diversified portfolio
  • Strong clientele

Weaknesses

  • Legal proceedings
  • Weak profitability

External

Opportunities

  • Venturing into alternative fuel business
  • Expanding Mexican market
  • Higher demand for organic products

Threats

  • Shift to vegetarianism
  • Laws and regulations
  • Increasing commodity costs
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