Potashcorp Industry Trends: -Agricultural Demand Case Study

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In a better scenario, agricultural incentives could actually be increased as an incentive to spur production and greater stability will return to food prices. Neither of these scenarios is actually very likely in the extreme, but something closer to the second scenario is more likely -- agricultural subsidies will likely continue at relatively the same levels, and food prices will continue to fluctuate but will not likely cause major market upheavals in the short- or long-terms. SWOT Analysis

The company's primary internal strength is its capital and resource reserve, which provide a great deal of stability to the company and also give it a definite competitive advantage in the industry. A weakness of the company is its resource-intense series of products and production methods, which while unavoidable place the company at greater risk exposures on...

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An opportunity in the current market is provided by the economic uncertainty, which makes it more difficult for competitors to enter the field and allows PotashCorp to remain on firmer financial footing than existing competitors, given its size and market share. There are also threats inherent to this uncertainty, however, as identified above in the possibility of a negative impact on the agricultural industry and the demand for its products, which would have a direct and significant effect on the demand for the company's products and its overall profitability. Maintaining growth without making any major changes to structure or operations is advisable given this current mix of internal and external features.

Sources Used in Documents:

References

Bureau of Labor Statistics. (2011). www.bls.gov.

PotashCorp. (2011). www.potashcorp.com


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