Dow Inc SWOT and PESTLE Analysis

Strength

1. Highly diversified product portfolio serving various sectors: The company caters various industries through its products. Dow is a global producer and supplier of polycarbonates. The company segregates its products into three segments, viz., packaging and specialty plastics, industrial intermediates & infrastructure and performance materials & coatings. The company is the leading producer of propylene and aromatics, which could be used for multipurpose packaging requirements across different industries, beginning from retails to packaging of heavy machineries. With various derivatives of polyethylene, the company caters serves industries involved in mobility and transportation, wire and cable and construction end-markets. With its range of derivatives of polyethylenes and polyethances, the company fulfills the requirements of market segments dealing with appliances, coatings, electronics, surfactants infrastructure and oil and gas. Dow also has a range of coating products, needed in maintenance and protective industries, wood, metal packaging and labelling, traffic markings, traffic, thermal paper and leather dyes and fabric dyes.

2. Leading producer of polyethylenes as packaging material and for industrial usage: Polyethylenes are the major contributor to the sales revenue of Dow. The company uses it to prepare several derivatives used across industries as upstream products. Dow is the leading producer of ethylene, propylene and other derivatives of ethylenes, such as poluolefin elastom,ers, ethylene vinyl acetate and EPDM. These materials find multiple usage in the production of packaging films and sachets, wires, cables, construction materials, synthetic rubber, caps, closure, pipe applications and consumer durables. The company has world class manufacturing facilities across the globe. USA and Canada (30%) are the largest contributors to its revenue, followed by EMEAI region (30%), Asia Pacific (20%) and Latin America (10%) at last.

Weakness

Opportunity

Threats

Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Need of innovation driven increment in the cyclicity of plastic products: Most major companies have taken steps to enhance their environmental profile, by becoming more efficient or cutting down on waste. Dow Chemical Co intends to go a lot further, asserting that it wants to change the very role of business in society. The chemical manufacturing company has set itself a widespread series of sustainability goals, which it claims will not simply reduce its own impact but also drive environmentally responsible practices at other companies. The seven goals set by the company include “developing breakthrough innovations,” “valuing nature” and “engaging employees for impact”. Simultaneously, they aim to improve the lives of 1 billion and deliver $1 billion in cost savings and new cash flow for the company.