Dupont SWOT analysis
Most companies likely to use SWOT analysis to analyze their business performance. It
can help the company to do in-depth research on the potential growth or problems of their
business. With studying the internal and external factors of the business environment that
Dupont involves, they use SWOT analysis to understand the company’s strength,
weaknesses, opportunity and threats so that they can maintain their position in the market.
Dupont has its core competency which is they have a strong research and
development basis. The unit contains technological competence and with a proper
management makes Dupont able to use and develop the technology. (1)Since Dupont is a
US science and technology company, they have launched many products and services
with innovative technologies such as Kevlar fibers, Teflon fluoro-polymers and nylon.
Besides, (1)they have employed more than 1500 people in the R&D centre to leverage
scientific services and do the research activities. A strong focus on R&D which able to
transfer technology from the laboratory to the market place lead Dupont able to launch
new innovative products and be the first mover’s advantage.
Besides,(2) Dupont has their strength which is they have strong cooperate
culture in the company. Culture can influence cooperates’ ability to survive in the
market, and also can create the basis for a superior competitive position. (2)Dupont has
an extraordinary core values and beliefs in ethical to conduct their business. They
conduct and manage the business in ethic manner which they try to find ways to get
pioneer among the competitors. For example, (2)Dupont’s success in their Flooring
System’s commercial carpet franchise is because they have this strong culture permeate
throughout the company to develop the system. All the Dupont’s employees tend to hold
the same culture and behavior lead the company to achieve successfulness.
Dupont has the strength that (3)Dupont is a technology and brand leader
among their business industry. With the strong technological competence in Dupont, they
are able to be a leader in many industries. For example, (3)Dupont has strong position in
fluoro-products and is a market leader in flexographic printing and color communication.
Besides, (3)Dupont is also one of the leading automotive coatings suppliers and is the
largest manufacture of titanium oxide white pigments. Since Dupont had their pioneer
market position, it has increased their brand image and creates the competitive advantage
to the company.
However, (3)Dupont has lower operating margin compare with their
competitors. (3)The poor cost structure in the company makes them unable to use their
financial resources well in their business operating. Besides, poor financial management
due to Dupont’s unable to control its costs effectively cause the company has lower
operating profit margin. For instance,(3) Dupont’s have record average operating margins
of 7.7% as compare to the industry of average 8.9% and lower than their competitor,
Rohm and Hass Company which has margin of 9.4%. Due to this, Dupont may face
problem in develop their business in an effective way with low profit margin and have to
search for other ways tried to save cost while conduct their business.