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Rio Tinto Executive Summery Rio Tinto

   

Added on  2020-03-16

18 Pages4863 Words182 Views
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Executive summeryRio Tinto is one of the largest mining companies in the world which is operating manycountries of the world but has strong focus on the North America and Australia. Theorganisation is one of the blue chip companies in the ASX. The company offers copper,aluminium, gold, diamond, coal, iron and uranium as their main products to the exportingcountries. The main focus of the company is on the iron ore sector. Australia is one of thelargest iron ore suppliers of the country. The slowdown of some of the emerging economyespecially China, has cause the price decrease in the commodity market. The current pricelevel of the commodity has improved from the down of 2016 but because of the sluggishgrowth prospection of the exporting countries the mineral market sentiment in not up. Thestrategic analyse shows that the threat of new entrant in the market is low as the industry ishighly capital intensive and the current economic scenario is not bright. Because of the largesize of Rio Tinto get a strong hold on the suppliers side but the buyer bargaining power ismoderate in the market as the company is focused on the specific buyers market and did notdiversified. The threat to substitution is low because of the basic requirements of the ores.Because of the lower demand in the market the competition is very high in the market. RioTinto now focusing on the 4 p strategy where it emphasises on the people, performance,portfolio and partners. The organisation in the current situation can develop a new diversifiedapproach of Nickel mining as the main use of the product is in the stainless still and Rio Tintocan export this to its current iron ore customer countries. 2

Table of ContentsExecutive summery....................................................................................................................2Company background information............................................................................................4Industry background information...............................................................................................5Porter five forces analysis......................................................................................................7Threat from the new entrants in the market:..........................................................................8Suppliers Bargaining Power:..................................................................................................9Buyers Bargaining Power:...................................................................................................10Threat of Alternative Products:............................................................................................11Rivalry that exists among the different companies of the industry:.....................................12Strategic history.......................................................................................................................12Distinct features of business.................................................................................................12Corporate strategy................................................................................................................13Strategic future.........................................................................................................................15Way to improve strategy making.........................................................................................15New capability development for strategic advantage..........................................................15References:...............................................................................................................................163

Company background informationRio Tinto is in the operation or last 150 years. The main approach that the business took in itsoperation is continuous exploration, operation expansion and innovation. The business of RioTinto is speared over many countries but main focus is on the North America and Australia.In its total operation the organisation employs around 500000 employees (Riotinto, 2017).The main products that are offered by the company are copper, aluminium, gold, diamond,coal, iron and uranium. [Source: riotinto, 2016]4

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