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 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 & 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.


ID : 52401753 | May 2018 | 15 pages


Business Sector : Iron & Steel Making Company

Operating Geography : South Korea, Asia, Global

About POSCO : Headquartered in Pohang, South Korea it started operations in 1968 for manufacturing and selling rolled steel products. The company has gradually ventured into various related businesses that uses steel products or supplies requisite raw materials for manufacturing. Also, it has diversified risk by expanding its operating geography as mentioned above. Recently, it took up restructuring initiative that resulted in a financial effect worth KRW 7 trillion. It achieved an operating profit of 3.7 billion dollars for FY – 2017. It has around 130, 000 employees as of May, 2017.

The mission statement of USS POSCO states “To Conduct Business in A Manner That Provides Maximum Value to Our Customers, Owners and Employees.” ; With a vision of “To Be the Safest, Most Competitive Flat Rolled Steel Company.”

POSCO Revenue :
28,554 billion KRW (listed in NYSE:PKX) as of FY - 2017
24325 billion KRW as of FY - 2016

Competitive Analysis of POSCO

The SWOT analysis of POSCO is presented below:
1. Consistently strong financial performance
2. Global Presence
3. People – Centric organisation
4. In – house research capability
1. Problematic Cash Conversion Cycle
1. Expected Growth in steel demand in developing economies
2. Expected Consolidation of the sector
3. New Ventures and Restructuring Endeavour
1. Competitors
2. Problem of Over - Capacity
3. Substitute Products

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

Detailed SWOT Analysis of POSCO



1. Consistently strong financial performance: In last 3 years, the profits have increased continuously from negative to very high positive numbers (from -86.56 million to 2.68 billion i.e. 0% to 5% with respect to the revenue of the company), indicating an improvement in the situation. Retained earnings have improve, which now stands at 54% of the total asset value, albeit cost of goods sold has increased as compared to last year. Though there was a minor decrease in property, plant and equipment and of course in production, due to certain rationalization but it is able to maintain its profit margin as compared to last year’s margin. Interest coverage ratio has also increased from 0.76 to 1.86, showing a massive improvement in the financials of the company.

2. Global Presence: Under Great Voyager program it is continually expanding to newer geographies where there are customers and opportunities leveraging its know-how in the steel making industry segment. Also, it is moving into frontier unexplored areas such as North and South Poles, interiors of Africa and Siberia. These places have requisite resources in abundance. Apart from moving into newer geographies, it also has diversified business portfolio e.g.: POSCO Daewoo, POSCO E&C, POSCO Chemtech, POSCO Energy, POSCO C&C and POSCO ICT. Some of its subsidiaries are POSCO Maharastra, POSCO Mexico, POSCO Vietnam, and POSCO SS Vienna. It also has partnership with various steel players around the world as well.

3. People focused organization: Knowledge centric organization, with support for personal development of employees. It is also establishing a family management system in which it aims to improve trust and communication, harmony and synergy amongst the employees to improve their productivity. Focus on establishing a flexible and creative corporate culture would help in swift response to changes and generation of novel ideas.

4. In-house research capability: Posco has invested in establishing PosTech, in which students and faculties are involved in improving existing technologies and developing novel technologies. Delving into the segments of Lithium extraction and bio - pharma will be based on the studies and research done by students and faculties of PosTech, established 32 years back. PosLX, a technology for Li extraction, has been developed which will substantially reduce the time of extraction from one year to one month.


1. Problematic Cash Conversion Cycle: The Company, as any capital intensive company faces a problematic cash conversion cycle. Analyzing, its financial statement revealed that it takes around 3 years for its net receivables to convert to cash. This manifests the power of buyers of the Company. Recently, its asset turnover ratio has increased but still is very low. Working capital requirement, as a percentage of sales, has remained at 20%. Also, the ratio of Non – Cash Working Capital has reduced which suggests that non – cash current asset have reduced and cash has been realized more effectively, as compared to last year.


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


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

The PESTLE/PESTEL analysis of POSCO is presented below:
1. Business Environment
2. Risks
1. Decrease in global economic demand
2. Exchange Rate fluctuations
1. Demographics in developing countries
2. Urbanization
1. Innovations by Competitors
2. Industry 4.0 and other innovations
1. Labor laws
2. Bankruptcy Resolution Laws
1. CO2 emission norms
2. Sustainable use of resources
* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."
Safe and secure payments

Detailed PESTLE Analysis of POSCO



1. Business Environment: The government in a country is definitely responsible for various regulatory norms for multitudinous sectors. Lately, various developing countries have eased down their protective laws to attract investments from foreign players. The countries have their own obligations such as to solve the unemployment issue. E.g. India’s rank of ease of doing business index improved after various reform measures. Also, implementation of GST will play a pivotal role in easing the business environment. Growing protectionism in the world and laws pertaining to such a development would be detrimental for the company E.g. Imposition of tariffs on Steel and Aluminum imports by the US.

2. Risks: The risk arises from this dimension as it is uncertain if the government will choose a populist move or a prudent move. Generally, governmental changes that cause dissatisfaction amongst common populace will be avoided, most of the times those steps are not prudent. Recent imposition of tariff on steel and aluminum by Trump administration has delayed the investment plans of POSCO America corp. The delay is due to the company waiting for preliminary assessment report of imposition by US Commerce department which are expected to come after July 9, 2018.


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


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


1. Innovations by Competitors: This plays a major role in impacting business environment. The innovations by competitor, to produce better products in more environment friendly manner, becomes generally accepted norm, then late adoption of the technology will be costly for the company. Also, better technical know-how always gives an edge over the competitors in allocation of departmental projects. Arcelor Mittal has 11 R&D centers worldwide, which helps the company in hiring talents globally with multitudinous perspectives. The interaction amongst the research groups at Arcelor Mittal brings out novel ideas. POSCO though invests in R&D but apart from POSTech, it has no other R&D lab.

2. Industry 4.0 and other innovations: This is the current trend in manufacturing sector to use automation and data exchange technologies. This includes Internet of Things, Cloud Computing and Physical systems. The advancements in ICT will lead to “Smartization” of the steel factories improving the operational efficiency and strengthening the process monitoring by requisite integration. POSCO is migrating to “Smart – X” business, which includes Smart Factory (which is better operation of the factory beyond the replacement of human resources), Smart Energy, Smart Building etc.


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


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

Major Competitors : Arcelor Mittal , Nippon Steel, HBIS Group, China Baowu Group, Wuhan Iron and Steel Group, Tata Steel, NSSMC Group

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

Check out analysis of other relevant companies

References used in POSCO Analysis Report




Copyrights and Disclaimer

POSCO SWOT and PESTLE analysis has been conducted by Abhishek Mishra and reviewed by senior analysts from Barakaat Consulting.

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