Palm Oil Swot Analysis

SWOT ANALYSIS

Strength sdp practice ecologically friendly process and maintainable planting procedure. In addition to confirming its plant be ecologically friendly but also focuses on waste to prosperity package, while the unending waste becomes nourishment. It also has a biogas herbal in Isla Carey translating methane into energy. sdp has a very strong presence in the region and industry as part of a large multinational. It is also the largest listed plantation corporation planted area in the sphere.

Weakness

SDP is faced with problems of development of the palm oil industry and it is because of poor road infrastructure in landing on the ground transporting cpo port. Groups of freshly harvested fruit should be sent to the factory as soon

Rising health problem in the world is also facilitated by the use of palm oil, as it has less cholesterol tracks contains carotenoids, powerful antioxidants to strengthen the immune system and is a trans-fatty acid free. Palm oil is rich in vitamin a, d, e and k. In the presence of land in Indonesia, government regulations have also been favorable for the Sdp, investors may hold 90% interest in the plantation. As petroleum fuels contributes to environmental hazards, many large organizations and the nation switches to renewable energy, which leads to a strong demand for biodiesel. While biofuels are not the most promising fossil exchange, the availability of commercial production is low. Besides having an ideal growth and cultivation of palm oil and the availability of surplus land and low operating costs climate that the contribution to the growth potential of the company in the region. Scholarships for the two governments are also in favor of expanding the business of another person Sime Darby. The Indonesian government plans a tax exception of up to 20% of oil palm plantations and culture, where even the Malaysian government offers grants for replanting oil palm

The threat of substitute is high for palm oil, as 80 % of the palm oil is used for eatable use such as oil, fats and margarine. Though palm oil harvests four times manufacture compared the closest harvest which is rapeseed, there are many substitute in the market such as, soybean oil, sunflower oil, rapeseed oil, corn oil, peanut oil and olive oil. Among the substitute products, olive oils postures the highest threat as it is known as the strongest of all and advertised and the best of all eatable oil.

Low Bargaining Power of Supplier.

The raw resources needed for the farming are high quality seeds, land and fertilizers. Seeds for plantation could be taken from present plantation. Land-living for cultivation is obtainable in Borneo however there are certain issue’s on land ownership. And finally good quality manure can be shaped by Sdp itself .With seeds and manure being shaped by Sime Darby and only bought from provider at occasional juncture of lacks, the bargaining power of supplier here is low. Most performers in the market are complicated in both upstream and downstream activity and grow their own seedling in their plant sales