Ashland New Water Technology SWOT Analysis

Ashland Inc. is a world leading chemical solution industry. The Company provides chemicals and insights to customers on how to us the chemicals to create suitable products. Ashland Company operates in a wide range of market including water treatment, automobile, pharmaceuticals, personal care, and architecture. Currently, Ashland is introducing a new water technology that has the objective of improving the safety and sustainability of water treatment to customers, (Kitts, B. 2007).

The new technology is the latest innovation in the chemical market for Ashland Company that is being put in place to ensure market expansion and boost the sales. In order for the technology to be viable in the Company, the survey should be carried which is done through SWOT analysis. Ashland Company is introducing a new water technology and we use SWOT analysis to show how the technology would be put it in the best place in the market compared to other companies.


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Strength is the characteristic of a business that gives it an advantage over other businesses of the same nature. Ashland Company has a new water technology that is unique in the way it is being used compared to others in the companies offering the same service. This is because the scientists at Ashland were able to transform liquid water treatment into a solid form which does not exist in the other chemical companies. This has numerous advantages as discussed below.

The new technology has improved safety and sustainability. Chemical water treatment can easily be done using this technology which gives Ashland ability to attract more customers and thus make more sales. This makes the service to be easily accessed by many customers because it is highly sustainable in the treatment of water. As rival companies deal with the older technology, Ashland has the advantage of the new innovation.

Costs are reduced when the new water technology in Ashland is applied. Use of chemicals can be reduced by up to seventy percent when customers use this method in water treatment. The energy required in the production and distribution of chemicals is drastically reduced by use of this innovation as compared to the old one. The method also eliminates waste of other materials and time wastage in chemical handling. Fuel cost is minimal in the new technology and this makes Ashland have an upper hand in the chemical market than the rival companies who are still selling the old technology, (Hill, 2008).

The method invented by Ashland is hazard free. These are the concerns that workers have as they handle the chemicals during water treatment so that they are not in danger while at work. Emissions are less because the new technology is an eco-friendly solution for water treatment and management. Using the new Ashland technology means reduced accident, injuries and chemical spills which give the company an advantage over rivals.

Weaknesses are the characteristics that place a business at a disadvantage relative to other similar businesses. As Ashland introduces the new water system into its existing chemical business, there is a possibility of limitations in marketing strategy, development, and implementation. This is because the technology is new and many employees are not conversant with it because probably the ideas may be insufficient. Ashland Company must ensure that this is addressed so that the fundamental information for the promotion of this new technology is put in place to deal with the limitation. Otherwise, the situation is a limitation to the company which puts Ashland at a disadvantage to rivals in the chemical industry.

Change in size is another expected imitation in Ashland Company. The new technology will require new facilities and staff. With the new technology, many customers would purchase the product as such the company will expand in the market and general size. This would result in the acquisition of new structures to accommodate expansion and hiring of staff to manage the inflow of customers which may be costly. These factors may limit Ashland from experiencing growth and expose it to defeat by rivals in the global chemical market.

Opportunities are favorable conditions in the environment that make an organization to have great sales or profits if acted upon properly and promptly. Ashland Company has numerous opportunities through the introduction of the new water technology. They include technological and socio-cultural factors. These factors put the Company in a better position to make sales and grow the business at the expense of the competitors as discussed below.

Technology change is an opportunity for Ashland. This is because we currently live in a world where there is a change of technology and to survive in business one must improve in order to please the customers. With the introduction of the new water treatment technology, Ashland Company has an opportunity to capture as many clients as it can and make huge profits as compared to rivals who are still in the old technology despite the change in world technology.

Socio and cultural factors also favor Ashland Company in the chemical business. This is because the new water technology is friendly to the environment so many cultures are likely to accommodate it for use without any problem. Scientifically water is essential for life. Since use of this new water treatment is acceptable safe and sustainable, chances for high sale are high and

Ashland management should ensure that this opportunity is utilized maximally to outdo their rivals in the chemical market. Threats are barriers that hinder an organization from the successful business venture. In Ashland Company, the threats include economic factors and competition from other chemical industries that are in the same business and are scrambling for the same market. It is important that the management of Ashland should properly monitor the threats because they can silently and easily cause trouble as discussed below.

The economical factor can be a major threat to the new technology in Ashland. This is because the introduction of the new technology may be affected by the recession which is unpredictable; this may lead to massive losses because the customers will not have enough cash to buy the product. Expansion of market is expensive because a lot of funds are used to purchase new structures and hire more staff to manage the increased customer base. If not monitored, such expenditures can eat up profits and hinder business in Ashland Company.

Competition is also a major threat that can affect Ashland. A rival industry may come up with the same product immediately and fix a lower price than the price of the same product in Ashland Company. This can be a very big threat to the new technology because the business will be greatly affected and sales may go down. It advisable for the company to study market trends to counteract such threats so that it can be strong in the chemical industry.

From the discussion about SWOT analysis of Ashland Company, it is important for an organization to improve on strengths and turn the weakness into strengths. The threats should be carefully monitored and the opportunities turned into strengths in order to enable an organization to survive in the market and outdo the rivals like in the case of Ashland Company.

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