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Discuss about the Swot Analysis of IFFCO for Opportunities and Threats.

The strengths, weaknesses, opportunities and threats of the organization IFFCO can be better illustrated through the following table:



      Barriers to other companies from entering into the market.

      The business units of the particular firm are experienced.

      Increase in the profitability ratio of the firm in future.

      Strong position of the firm in the domestic market.

      Huge domestic market

      Increased diversification

      Variety of product

      Strong brand equity

      Enduring relationship with suppliers, distributors as well as retailers

      The business units are relatively smaller.

      The markets - both the domestic and global become highly competitive.

      Brand portfolio is weak

      More investment in the department of research and development.

      Tax structure is complex ("| IFFCO Global Website", 2016)

      Cost structure

      The future debt rating is lower

      The future profitability ratio is also weaker.

      Dependence on limited organized brands

      Heavy reliance on advertisements



 Facility of venture capital

 The company has an opportunity of strong presence in the worldwide market.

 The income level of the specified company increases continuously (Berthon et al., 2012).

Strong online presence for marketing and distribution of the products through different e-commerce vehicles such  as the Amazon

Increased participation of the women that have enhanced the demand for different products of the company, for example the frozen products.

The changes in the price.

Various taxation policies as per the rules and regulations of the nations across the world.

Business risks due to operation of business in external market.

Presence of various technical issues.

Limitation in the financial capacity

Lower amount of inflow of cash

The costs of the raw materials continuously increase.

Moreover, the overall costs of the firm increase.

 Increase in the labor charges

Increased competition from bid retailers that enjoys economies of scale and penetrates the market by reduced prices of foods

 Increased competition from the organic food

 Less demand of the IFFCO products among the consumers with busy schedule  who eat fewer at home

It has been found that the organization IFFCO is mainly dominating the domestic market in the particular field of industry. Thus, the particular firm creates barrier to the entry of other companies in the domestic market that is in the market of the United Arab Emirates. Moreover, the particular company IFFCO is running its business since 1975, thus, the business units of the organization are more experienced than any other companies in the market ("| IFFCO Global Website", 2016). Thus, these experienced business units act as strengths for the firm. From the detailed analysis, it can be said that the experience of the business units have helped and assisted the particular organization to run its business successfully. Moreover, it can also be said that these experience of the business units also help the organization to run its business profitably as the particular organization has the most knowledge regarding the resources, suppliers, raw materials and customers of the business (Armstrong et al., 2012). Furthermore, all these knowledge also helps the management of the organization to operate and regulate the business efficiently. Thus, it can be said that the particular firm IFFCO has a strong position in the domestic market. Moreover, the domestic market that is the United Arab Emirates is huge that helps the organization to enrich its business.

The analysis of the functionalities of the corporation IFFCO reveals the fact that the business entity currently operates through 32 offices with 30 manufacturing facilities in different nations. The company IFFCO offers IFFCO is an inventive and assimilated multi food product and enjoys the diversification advantage. The company also operates through different a segment that includes the “oil and fats”, “packaging”, “agri business”, “IFFCO chemicals” and “Impulse Foods” among many others. The variety of product range also has certain products with strong brand presence that are regarded as the “winning brands”. The winning brands of the corporation include the “London Dairy, Tiffany, NOOR, iGLOO, Shama, Pristine, Al Baker, Rahma and many others that helps the company to gain competitive edge in the market. In addition to this, the critical analysis of the operations of the firm also reveals the fact that there exist strong as well as enduring associations of the business entity with its retailers, suppliers as well as distributors. In addition to this, the IFFCO also offers startling food recipes on their official website that increases the customer engagement of the firm ("| IFFCO Global Website", 2016).


The organization IFFCO has various strengths but similarly it also has several weaknesses. The reason behind this is that the business units of the particular organization are comparatively smaller than any other firms. Moreover, with the passage of time, both the domestic market and the international market have become more competitive as the total numbers of companies that is competitors in the particular sector have increased. In addition to these, it has been found that the particular firm has various products under various brands. However, the portfolio of brand is weak; thus, it acts as one of the weaknesses of the organization. The objective of the particular organization is to produce innovative products, thus, it has been noted that the organization invest most of the funds in the department of research and development (Liao et al., 2014). This has resulted into adverse effect on the cost structure of the firm. Furthermore, the company is regulated in various other countries across the world; thus, the firm has to face various taxation regulations and policies. Thus, it can be said that the organization IFFCO has to face complex tax structure and the future debt rating of the firm is also lower. As the competitiveness in the present global market increases, the profitability ratio in the future might also get affected. Despite having winning brands, the company encounters the weakness of excessive reliance of the brands on limited or else very few organized brands. In addition to this, the companies relies heavily on advertisements that in turn can in due course effect the overall return on investment ("| IFFCO Global Website", 2016).

The organization IFFCO has relatively lesser opportunities, these include – it gets the opportunity of venture capital. Additionally, the organization IFFCO attains the opportunity of selling more products in the worldwide market as well as in the domestic market. This has resulted into the increased revenue of the firm, and the profit percentage of the organization also increases with the passage of time. Therefore, it can also be said that the increased revenue and sales have also provided the firm with an opportunity to increase its level of income constantly (Papadopoulos & Heslop, 2014). The multiple channels of the distribution mainly the online presence of the corporation in addition to the existing physical presence proves to be an immense opportunity of growth and development for the organization. Furthermore, the augmented participation of women at the workplace also resulted in positive demands for different products of the company IFFCO especially the frozen products.  


The company IFFCO has various strengths and relatively less opportunities, but in comparison to these, the particular firm has several threats. These include – the prices of the products are constantly changing as the costs or the expenses of the organization IFFCO also changes frequently with the passage of time. The price of the raw materials varies costly, so the production cost or the manufacturing cost of the organization also increases and thus the prices of the products also vary (Lee & Carter, 2012). Therefore, the company either loses its customers with the increment in the prices of the products, or, if the company continues its business at fixed price rates of the products, then it will run under loss if the prices of the raw materials increase (Zeriti et al., 2014). Thus, the frequent changes in the prices are considered as the threat to the company IFFCO. Moreover, as the company runs its business across the world, it has to pay taxes for its business in different nations as per different rules. Thus, the particular firm has to pay more amount of taxation. In addition to this, due to global business, the business risks are also more for the firm as the company has to operate and regulate its business in external market. In addition to these, various technical issues are found to be very common factor for the firm and there are also various limitations in the financial capacity. These involve – due to more investment in the research and development, the inflow of cash has been reduced, the cost of the raw materials also increases with the passage of time (Morgan, 2012). Additionally, the labor cost and the overall expenses of the firm also increase.

From the above analysis, it can be said that the company IFFCO faces more threats from the present market than it gains opportunity for running its business across the world. The big retailers such as the Wal-Mart affects the overall food industry by reducing the prices of the food and thereby gains greater share of the market by market penetration. In addition to this, the analysis of the food industry also reveals the fact that the company IIFCO also faces severe competition from organic food products. Moreover, the time constraints and the busy schedule of thee people compel consumers in various nations to eat fewer at home and thereby demand less of the IFFCO products. On the other hand, it has been found that the strengths and weaknesses of the firm are almost equal. Therefore, the particular organization IFFCO should put more focus on the threats and weaknesses of the firm in order to convert them into strengths and opportunities of the organization.    


Numbers of Employees Required

Salary or Wage expenses (Bangladeshi Taka)




Managing Director








36000000 (120000 each employee per annum)

Skilled Labor


8400000 (84000 each per annum)

Unskilled Labor


7200000 (48000 each per annum)

Rent Area

Amount (Bangladeshi Taka)

Work shed

300000 per annum


Amount (Bangladeshi Taka) per annum

Different Machineries


Raw material











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Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons, 55(3), 261-271. Available at:

 IFFCO Global Website. (2016). Retrieved 10 October 2016, from

Lee, K., & Carter, S. (2012). Global marketing management. Oxford University Press. Available at:,+K.,+%26+Carter,+S.+(2012).+Global+marketing+management.+Oxford+University+Press.&ots=We5jPLndro&sig=_VstMBk1xn_julRaadMOzA5JArs#v=onepage&q&f=false

Liao, C. N., Hung, J. Y., Kao, H., & Wu, C. J. (2014). Marketing strategy model: A conceptual framework for micro-enterprises. Human Systems Management, 33(4), 199-206. Available at:

Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102-119. Available at:

Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. Routledge. Available at:,+N.,+%26+Heslop,+L.+A.+(2014).+Product-country+images:+Impact+and+role+in+international+marketing.+Routledge.&ots=awomMoJgeU&sig=BI2An9ZBdnUM-58UsyRQ7KcM9P0#v=onepage&q&f=false

Zeriti, A., Robson, M. J., Spyropoulou, S., & Leonidou, C. N. (2014). Sustainable export marketing strategy fit and performance. Journal of International Marketing, 22(4), 44-66. Available at:

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