SUSTAINING COMPETITIVE ADVANTAGE IN THE OIL PALM INDUSTRY: SWOT ANALYSIS OF IOI CORPORATION

Abstract

IOI Corporation, or commonly referred to as IOI, is one of Malaysia's home grown business conglomerates which started off from humble beginnings in industrial gas manufacturing. Today IOI Group is a global organization with over 150,000 hectares of plantations where 98% are planted with oil palm; 12 palm oil mills across Malaysia; three CPO refineries with total capacity of 1.8 million MT/yr located in Peninsular and East Malaysia, and Rotterdam in the Netherlands; the largest oleochemical plants in Asia; and specialty fats plants across the world in the Netherlands, the United States, Egypt, Canada, and Malaysia (source: IOI Annual Report 2009).The Group’s plantation business strong growth in a short span of 24 years since 1983 was achieved through acquisitions and distinctive plantation management practices which emphasizes on continuous improvements in yields and cost efficiencies. As a major player in the oil palm industry, which is the third biggest contributor to the Malaysian economy (,Economic Report 2007/2008), IOI corporation faces many challenges to sustain its competitiveness. What strategic moves must IOI take to remain tops in this oil palm industry? This paper seeks to provide a perspective on how IOI Corporation can sustain its competitiveness by undertaking a SWOT Analysis the corporation. A diagnosis of the corporation is made after the SWOT analysisCompetitiveness, SWOT Anlaysis, Oil palm industry, Case study