Swot matrix strategies objective the core purpose of

SWOT Matrix Strategies Objective
The core purpose of SWOT matrix is to identify the strategies that an organization can use to
exploit external opportunities, counter threats, and build on & protect Alcoa Corporation
strengths, and eradicate its weaknesses.
Step by Step Guide to Alcoa Corporation SWOT Analysis
Strengths of Alcoa Corporation – Internal Strategic Factors
As one of the leading firms in its industry, Alcoa Corporation has numerous strengths that enable
it to thrive in the market place. These strengths not only help it to protect the market share in
existing markets but also help in penetrating new markets. Based on Fern Fort University
extensive research – some of the strengths of Alcoa Corporation are –

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 Strong Brand Portfolio – Over the years Alcoa Corporation has invested in building a
strong brand portfolio. The SWOT analysis of Alcoa Corporation just underlines this fact. This
brand portfolio can be extremely useful if the organization wants to expand into new product
categories.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling
the company to overcome any supply chain bottlenecks.
 Successful track record of developing new products – product innovation.
 Good Returns on Capital Expenditure – Alcoa Corporation is relatively successful at
execution of new projects and generated good returns on capital expenditure by building new
revenue streams.
 Strong Free Cash Flow – Alcoa Corporation has strong free cash flows that provide
resources in the hand of the company to expand into new projects.
 Superb Performance in New Markets – Alcoa Corporation has built expertise at entering
new markets and making success of them. The expansion has helped the organization to build
new revenue stream and diversify the economic cycle risk in the markets it operates in.
 Strong distribution network – Over the years Alcoa Corporation has built a reliable
distribution network that can reach majority of its potential market.
 Strong dealer community – It has built a culture among distributor & dealers where the
dealers not only promote company’s products but also invest in training the sales team to explain
to the customer how he/she can extract the maximum benefits out of the products.

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Weakness of Alcoa Corporation – Internal Strategic Factors
Weakness are the areas where Alcoa Corporation can improve upon. Strategy is about making
choices and weakness are the areas where a company can improve using SWOT analysis and
build on its competitive advantage and strategic positioning.
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 The profitability ratio and Net Contribution % of Alcoa Corporation are below the
industry average.