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Fortescue Metals Group: the New Force in Iron Ore |

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Submitted By Sadaf123
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| CASE 2 | Fortescue Metals Group: The new force in iron ore |

ABC
9/12/2011
|

Contents Introduction 1 Analyzing the external environment 1 Demographic 1 Economic 1 Socio-culture 2 Political-legal 2 Global 2 Technological 2 External environment conclusion 2 Industry analysis 3 Profit pool 3 Porter five forces 3 Threat of new entry 3 Bargaining power of suppliers 4 Bargaining power of buyers 4 Threat of substitute products 4 Rivalry among competing firms 4 Industry analysis conclusion 4 Competitor analysis 4 Analyzing the internal environment 5 Tangible resources 5 Intangible resources 6 Value chain analyzing 6 Capabilities 6 Core competencies 7 Weaknesses 7 Current strategy 7 Future strategy 8 Concluding remarks 8 References 9

Introduction
Fortescue Metals Group: The new force in iron ore is a new company in the Australia with new vision. It was founded in 2003 with the aim of lowest cost producer in order to complete with large players of industry. Its main customer is China. Its lowest cost structure is main reason behind getting huge business from china. It had to faced many challenges in the industry but its strong policies supported company to make its distinct position in the industry
Analyzing the external environment
Every business/ company has external environment with some positive and negative points. Below is the analysis of Fortescue external environment.
Demographic
According to information in case there was no much diversity in the demographic environment. Company operates in Australia and trains local aboriginal groups, including the Kariyarra, Nyiyparli and Palyku people.
Economic
As company has to export large proportion of its production to the China therefore Economic condition of China has direct impact on it. Population in China is moving from villages to

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