Find comprehensive SWOT and PESTLE research reports across industries globally

Holistic Analysis Customized Solutions Top Quality

Please Enter Correct Data! X
Thanks for downloading our report! X
Check your email for the requested analysis report.
Be sure to place support@swotandpestle.com on your approved senders list to prevent emails from going into spam.
Thanks for downloading our sample report! X
Check your email for the requested sample analysis report.
You can also download it here.
Get The Free Sample Complete
SWOT & PESTLE Analysis Report
This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. We also guarantee that you cannot find matched quality at such competitive and economic pricing.
Great quality, Affordable pricing X

As a leading strategy research portal we invest deep to produce imperial quality reports that can help corporate professionals, academicians and students take their research forward and set a benchmark for high standard business research. The cost for reports has been kept minimal to just cover our operational and maintenance costs although the mission is not to reap monetary benefits. We look forward to your support.

Get Your Free Summary Copy of the
SWOT & PESTLE Analysis Report
Get the summary SWOT & PESTLE.com report delivered straight to your email inbox for free.
Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

Alcoa Corporation SWOT & PESTLE Analysis

ID : 52369353 | Mar 2018

COMPANY PROFILE - Alcoa Corporation

Business Sector : Metals and Mining

Operating Geography : United States, Global

About Alcoa Corporation : Alcoa is an American MNC and headquartered in Pittsburgh, USA. It was founded in 1888 in Pittsburgh. It has a market cap of $6.2 billion. It is the leading producer in bauxite, alumina. It also produces certain compounds for customer specific needs. It has plants for aluminum smelting and refining as well as flexible energy portfolio. Several global refineries are supplied by its raw materials. It is world’s largest bauxite miner. Alcoa’s Western Australia refineries supply 8% of global alumina needs and is the third largest single alumina source. It has operations in more than 80 countries across North America, South America, Asia, Australia and Europe as of 2018. It had 14,000 employees as on Dec 31 2016. It is #173 in Forbes’ top American Public Company. Alcoa Corp is listed on New shareholders York Stock Exchange. Its vision is to become the best company in the world—in the eyes of its customers, shareholders, communities and people.

Alcoa Corporation Revenue : $9.3 billion (FY Dec 2016)

Competitive Analysis of Alcoa Corporation

The SWOT analysis for Alcoa Corporation is presented below:
Strengths
Weaknesses
1. Diversified operations across global markets
2. Strong footing in Bauxite market
3. Low cost alumina Production
4. Efficient supply chain management
1. Ongoing legal battle in Boonville to adversely affect operations
2. Over-dependence on US economy
Opportunities
Threats
1. Mergers and Acquisitions
2. Growing Aluminium demand in developed as well as developing economies
3. Favourable Supply side forces
1. Impact of energy costs and supply side constraints
2. Cyber-attack may disrupt operations
3. Cyclical Fluctuations in Aluminium industry
4. Stiff competition in Mining Sector

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Detailed SWOT Analysis of Alcoa Corporation

 

Strength

1. Diversified operations across global markets: Alcoa is a global company with more than 130 years of history. It has 43 operating locations across 10 countries and its huge size and diversified operations enable access to major markets across Atlantic and Pacific basis as well as China. Further according to the company it has been involved in research and development of 90% of all aerospace alloys currently used in the aerospace industry. Thus the company also has a strong foothold in the growing aerospace segment.

2. Strong footing in Bauxite market: Alcoa is world's largest bauxite mining Company and the world's leading producer of alumina. Bauxite is converted into alumina which is used to produce aluminium metal. Alcoa’s competitors are relatively new in this market which give it cost advantage and greater access to market. Its early entry made its operations efficient due to long term mining rights in strategic locations like Huntly (the second largest bauxite mine in the world) with large high quality metallurgical grade bauxite. The proximity of Australian bauxite mine to China has increased its market penetration there as well as Middle East. Close proximity with China has improved logistics and reduces cost, Bauxite demand will grow with time which will increase its earnings.

3. Low cost Alumina production: Alumina production units are located close to bauxite mines and alumina refineries which enable for economies of scale. Stable and efficient internal mines leverage supply chain through their vertical integration. The average cost position in 2016 was in the first quartile of global alumina production. This increases their competitiveness in the highly competitive alumina market which is used for metallurgical and non-metallurgical purposes. Technological advancements and skilled workforce have also lowered its cost. It helps in achieving competitive pricing mechanism which increases its sales and hence overall revenue.

4. Efficient supply chain management: Alcoa has a Global Supplier Sustainability Program to leverage supply chain across it global suppliers. They monitor emerging and lagging categories every year to improvise and sustain operations. Quick access to markets in North America, Europe, Middle East and Australia have enabled smooth logistics and thus optimized costs. Value chains also strengthen which make it leader in large scale productions. Efficient supply chain aids in minimizing costs and improves competitiveness. It also increases the profit margins and creates possibility of further expansion.

Weakness

1. Ongoing legal battle in Boonville to affect expansion: To expand operations to Liberty Mine near Boonville, Alcoa needs permissions from the local authorities. However, the local residents demanded protection in expansion areas. This has taken the dispute to court as few locals formed Save Our Homes LLC to save their area from dust and mining waste. They demand Alcoa to honour their demands which will lead to additional costs and affect profit margins. As per Alcoa, Indiana state law has been violated thus, they filed a lawsuit against Boonvile. Ongoing battles due to the complex nature of this industry follow as Alcoa attempts to expand its mining and smelting operations. It will also adversely affect its community relationships.

2. Over-dependence on US economy: Alcoa is highly dependent on North American economy for Rolled Products segment. 90% of food and beverage and bottle markets are concentrated in America. These products compete with domestic and foreign manufacturers but supply contracts of Alcoa are limited which leads to loss of existing customer base outside America. Competition in America leads to aggressive pricing policy which may negatively affect operations and profitability. The profits fell by 272kMT of RCS. Moreover, 2.3 mtpa alumina refining capacity is in Texas which implies closure or weak business environment in US will affect it. US’s share in Alcoa’s revenue was 47%in 2016.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

References

1. https://indianapublicmedia.org/news/alcoa-suit-house-bill-statewide-regulatory-impact-140440/

2.http://www.alcoa.com/sustainability/en/pdf/2016-Sustainability-Report.pdf

3. https://www.foundry-planet.com/de/news/firmen-news/firmen-news/1640/?cHash=50fe58f13cc1201d4f6f8dba375f32dd

4. https://in.reuters.com/article/us-china-congress-aluminium/chinas-aluminum-demand-growth-to-stay-ahead-of-gdp-chinalco-chairman-idINKBN1CT0CT

5. https://www.engineering.com/AdvancedManufacturing/ArticleID/16394/Automotive-Aluminum-Demand-Growing-What-It-Means-for-Tier-Ones.aspx

6. file:///C:/Users/Dell/Pictures/Camera%20Roll/alcoa%20pdf.pdf

7.http://www.alcoa.com/global/en/who-we-are/default.asp

8. https://www.reuters.com/article/us-china-metals-aluminium/china-aluminum-capacity-cuts-boost-market-leaders-prices-idUSKBN1AJ0QO

The PESTLE/PESTEL analysis for Alcoa Corporation is presented below:
Political
Economical
1. Impact of Trump’s protectionist trade policies1. Unstable macroeconomic parameters
2. Impact of Global economic slowdown on credit market
3. Impact of foreign exchange rate fluctuation
Social
Technological
1. Adoption of strict safety measures1. Residue Filtration Technology for efficient residue management
2. Advance smelting technology
Legal
Environmental
1. Impact of change in US corporate tax rate on profit margins
2. Legal compliance in every sphere leading to higher costs
1. Mining Rehabilitation and residue management
2. Dedicated environmental improvement plan
3. Reduced CO2 emissions
* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Detailed PESTLE Analysis of Alcoa Corporation

 

Political

1. Impact of Trump’s protectionist trade policies: Executive and legislative actions like fiscal policies of US administration affect Alcoa’s sales. US government has changed trade policies and regulations. Trump’s protectionist trade policies have raised US import tariffs. Operational costs may go up in case of change in international trade agreements and enforcement of restrictions. This will lead to an increase in prices of raw materials and hence final products. It will reduce competitiveness of its products and may reduce its customer base in world market. This will adversely affect their earnings if Alcoa is not able to manage its costs. The credits under “cap and trade” system & insurance premiums may also rise.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

1. Adoption of strict safety measures: Alcoa operates in the most challenging industry where compliance with safety norms is essential as otherwise operations may be disrupted. They train all their employees with the requisite skills to control and prevent injuries or casualties for process stability. In 2016, there was just 1 contractor casualty. Serious efforts led to a 58% reduction in fatal and serious injury/illness (FSI) events in 2016 as compared to 2015. New indicators and methods are being devised to ensure high safety standards and predict potential fatalities, major injury and illness. Risks due to human interaction with mobile equipment have reduced due to Alcoa’s Worker on Foot initiative. Strong safety culture gives the brand loyalty of its employees and a positive brand image.

Technological

1. Residue Filtration Technology for efficient residue management: Alcoa uses this residue filtration technology in Kwinana refinery since 2016. It will save 30 hectare residue storage area for 20 years like it did in 2011. The freshwater use has decreased by more than 1 gigalitre per year. This technology squeezes out water from the mud in bauxite residue. This water is further recycled for further use. It installed plate and frame pressure filters for water purification, refractory materials, pharmaceuticals, artificial marble, paper sizing, ceramics, abrasives, petroleum processing, plastic and fire retardants in carpets. Residue area minimization and dam stability increase Alcoa’s operational efficiency and reduce costs. It will invest $80 million to install state of art aeration technology for enhancing Yadkin river’s water quality and dissolved oxygen level.

2. Advance smelting technology: Alumina refinery process control technology and Soderberg technology has reduced energy related obligations of the group. It has world class global smelting capacity for aluminum castings which produce billet, foundry, rod and slab products in North America and Europe. Individual customer demands for automobiles, buildings, construction, electrical, industrial and transportation markets are also fulfilled using advance smelting technology. The rolling technology is pioneer in aluminum sheet packaging. Unalloyed high purity products are timely delivered using the cast products. It’s breakthrough smelting technology which has reduced its operational costs and improved their standing in the global cost curves.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.

References

1. https://indianapublicmedia.org/news/alcoa-suit-house-bill-statewide-regulatory-impact-140440/

2.http://www.alcoa.com/sustainability/en/pdf/2016-Sustainability-Report.pdf

3. https://www.foundry-planet.com/de/news/firmen-news/firmen-news/1640/?cHash=50fe58f13cc1201d4f6f8dba375f32dd

4. https://in.reuters.com/article/us-china-congress-aluminium/chinas-aluminum-demand-growth-to-stay-ahead-of-gdp-chinalco-chairman-idINKBN1CT0CT

5. https://www.engineering.com/AdvancedManufacturing/ArticleID/16394/Automotive-Aluminum-Demand-Growing-What-It-Means-for-Tier-Ones.aspx

6. file:///C:/Users/Dell/Pictures/Camera%20Roll/alcoa%20pdf.pdf

7.http://www.alcoa.com/global/en/who-we-are/default.asp

8. https://www.reuters.com/article/us-china-metals-aluminium/china-aluminum-capacity-cuts-boost-market-leaders-prices-idUSKBN1AJ0QO

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Check out analysis of other relevant companies

Copyrights and Disclaimer

Alcoa Corporation SWOT and PESTLE analysis has been conducted by Kanupriya Sheopuri and reviewed by senior analysts from Barakaat Consulting.

Copyright of Alcoa Corporation SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.