RIO Tinto Group is a British International Mining and Metal Corporation. It is head quartered in Westminster, London, and city of United Kingdom with an administration office operating in Melbourne, Australia. In 1873 the company was established when a group of share holders buy a mine complex on the Rio Tinto, in Huelva, Spain, from the government of Spain. After that, the company is now making a place in the market among the world leading companies which are specialized in the business including aluminum, copper, iron ore, coal, diamonds and uranium
Rio Tinto SWOT Analysis
Strengths
• The main strength come to the company as they are offering first class products and their cost is low as compare to the other companies that is why they are attracting more people to buy their products. They have also different products contribution then them.
• RIO manufacture a wide range of products including copper, diamonds, coal, aluminum, uranium, iron ore, gold and also materials that are used in industry such as talc, salt, zircon, borates and titanium oxide
• Rio Tinto is the world fourth largest mining company according to the public’s choice in the March of 2009.
• There are few factors such as the fine quality of their resources, well built set of scales or balance sheet and an everlasting position has make it possible for Rio Tinto to carry out the leading production line.
Weaknesses
• Although the company is working in more than 50 nation’s world wide but they are confined on their production centers in Australia and Canada. Due to this, the large expenditures are gaining more than the others.
• Due to restricted liquidity position most of their material goods whether in the form of machinery or in mining infrastructure, they are in illiquid form.
• In the end of 2008, their debt was $38.6bn but at the end of 2010 it was 4.3$bn. Which show that there occurs some problems.
• The company is incapable to face any risks about country.
• The main weakness of the company is the disclosure to expected tragedy.
Opportunities
• Their growing industries in India and China will give grow internationally.
• Their achievements in this field can take them to their best place in the market.
• Allowing mining for the life time will be a great opportunity for them.
• By increasing the practices of sustainability they will open new doors for their customers.
Threats
• A company can face natural disasters in future.
• Due to the financial crisis in European countries, they may have some currency risk.
• Any kind of political risk could hurt Rio’s ability to grow in the present market.
• The slowdown in the economy globally will affect their position in the market.
• Protesters may force the government to implement strong and harsh parameters for companies.
• The increase in the unstable products can severely put the company position in danger.
References
RIO Tinto, Official Website, and Company History, (2012): http://www.riotinto.com Retrieved: 21st Nov, 2012
Yahoo Finance, (2012): http://uk.finance.yahoo.com/q?s=RIO.L Retrieved: 21st Nov, 2012