Question

using SWOT analyasis describe strength ,weakness ,threat and opportunities of Cameco Corporation

Answer 1

SWOT analysis is a strategic planning tool used by firms to carry out analysis to make the company more efficient. SWOT is the acronym for Strength (S), Weakness (W), Opportunities (O) and Threats (T). The SWOT Analysis framework allows a firm to potentially identify the internal strategic factors (strengths and weaknesses) as well as external strategic factors (opportunities and threats)

Now let's take a brief overview of these elements with respect to Cameco corporation:

1. Strengths

• A regulated and stern flow of cash ensures that Cameco is never short of resources and not shy away from expansion.
• Return of Expenditure in Capital assets are good. Cameco being an established player in Uranium companies, they have always planned their capital expenditure with utmost efficiency over the years.
• Strong Brand portfolio. Cameco corporation has strived forward in ensuring that they have maintained a great brand outlook. This brand awareness is needed if they are thinking to expand in newer markets.
• The rapport between dealers and suppliers is very neatly maintained

2. Weakness

• Challenges posed by new entrants is not dealt best.
• An old business model has been posing a weakness for expansion in newer areas.
• To continue with the previous point, marketing of Cameco's products are not satisfactory. New comers might use this issue to their advantage.
• R&D investment is below par especially considering their industry

3. Opportunities

• Advent of new technology might provide a better price distribution strategy for Cameco, thus retaining their loyal customers and attracting newer ones.
• Government agreements has pushed the boundaries of newer markets which can be explored by Cameco.
• Stringent environmental policies have set a precedent for a great market competition in which Cameco can make a strong impact.

4. Threats

• Seasonal demand of profitable products. What happens in this case is, if due to unforeseen circumstances there is a demand shortage in the profitable season, then there is a possibility of short term loss to Cameco if not large.
• Rise in prices of raw materials and a bit too intense of a competition can affect the business of Cameco.
• A dearth in supply of innovative products can translate to losing of market power in the long term.

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