10
Chapter 1 · The Overview - Introduction
1
BOX: The SWOT analysis
The SWOT analysis is a
generally applicable method
to systematically examine and
evaluate a difficult situation, e.g.
a new idea. The acronym SWOT
is derived from the initial letters
of the following four terms:
5 Strength: What are the
advantages and strengths of
the new idea?
5 Weaknesses: What are the
disadvantages of the new
idea?
5 Opportunities: What
opportunities will arise if I
realize the new idea?
5 Threats: What risks, i.e.
dangers, arise when
implementing the new idea?
In order to obtain a conclusive
analysis, all relevant aspects
must be considered when
answering these four questions,
i.e. all economic, social and
environmental aspects. Today,
SWOT analysis is the first step
in strategic planning for many
corporate decisions.
The SWOT analysis considering
the use of renewable raw
materials for energy and
material purposes provides the
following overall picture:
z Strength:
5 The limited, fossil raw
materials coal, oil and
natural gas are conserved.
5 This reduces greenhouse gas
emissions.
5 Ideally, this will result in
almost closed and thus
sustainable cycles, e.g. of
carbon dioxide.
5 The income of workers in
forestry and agriculture will
be expanded: Jobs will be
created and regional benefit
increased.
5 Products will be available
locally and people are
no longer dependent on
foreign raw materials:
The security of supply is
increased.
5 The spectrum of useful
plants is extended and
crop rotation can be varied
more widely: The cultural
landscape is enriched.
z Weaknesses:
5 The available agricultural
land must be divided
between crops and food
production.
5 For some uses of products
(e.g. rape cultivation for the
production of biodiesel), this
competitive situation leads
to acceptance problems
among consumers.
5 In some markets, renewable
raw materials are not (yet)
competitive. This leads to
undesirable long-term political
regulations (introduction of
biodiesel) and/or subsidies
(use of biogas).
5 In order to convert
renewable raw materials into
innovative and competitive
products, extensive and
thus time-consuming and
expensive research and
development is required.
z Opportunities:
5 As a result of increased
research and development,
innovative products based
on renewable raw materials
are being developed that
significantly improve
competitiveness compared
to fossil raw materials.
5 The supply of raw materials
can thus be placed on a
sustainable basis: Respective
countries are no longer
dependent on expensive
imports.
5 Rising prices for fossil
raw materials can lead
to products based on
renewable raw materials
becoming economically
attractive. However, it must
be considered that rising
prices for fossil raw materials
can also lead to higher
agricultural costs.
5 Breeding improvements
in crops and technological
improvements in their
production can significantly
strengthen the competitive
position of sustainable raw
materials.
5 In general, a trend toward
greater sustainability
and more natural
approaches is recognized
in industrialized countries.
If, in addition, mandatory
certification of sustainable
products is introduced
in these countries, this
can significantly increase
the social acceptance
of products based on
renewable raw materials.
z Threats:
5 The above-mentioned
competition between
commercial crop production
on the one hand and food
production on the other
may lead to a situation in
which the cultivation of
commercial crops is not
accepted by society in the
long term.
5 With the world population
continuing to grow and the
increased demand for food,
this effect may become even
greater.
5 For many products based
on renewable raw materials,
it is highly questionable
whether they can be
produced economically in
the long term compared to
products based on fossil raw
materials.
The opportunities offered by
renewable raw materials seem
to exceed their threats by
far. However, only future will
show how the opportunities
of renewable raw materials
will develop. Since different
countries have different
agricultural preconditions,
different solutions will be
found globally.
Chapter 1 · The Overview - Introduction
1
BOX: The SWOT analysis
The SWOT analysis is a
generally applicable method
to systematically examine and
evaluate a difficult situation, e.g.
a new idea. The acronym SWOT
is derived from the initial letters
of the following four terms:
5 Strength: What are the
advantages and strengths of
the new idea?
5 Weaknesses: What are the
disadvantages of the new
idea?
5 Opportunities: What
opportunities will arise if I
realize the new idea?
5 Threats: What risks, i.e.
dangers, arise when
implementing the new idea?
In order to obtain a conclusive
analysis, all relevant aspects
must be considered when
answering these four questions,
i.e. all economic, social and
environmental aspects. Today,
SWOT analysis is the first step
in strategic planning for many
corporate decisions.
The SWOT analysis considering
the use of renewable raw
materials for energy and
material purposes provides the
following overall picture:
z Strength:
5 The limited, fossil raw
materials coal, oil and
natural gas are conserved.
5 This reduces greenhouse gas
emissions.
5 Ideally, this will result in
almost closed and thus
sustainable cycles, e.g. of
carbon dioxide.
5 The income of workers in
forestry and agriculture will
be expanded: Jobs will be
created and regional benefit
increased.
5 Products will be available
locally and people are
no longer dependent on
foreign raw materials:
The security of supply is
increased.
5 The spectrum of useful
plants is extended and
crop rotation can be varied
more widely: The cultural
landscape is enriched.
z Weaknesses:
5 The available agricultural
land must be divided
between crops and food
production.
5 For some uses of products
(e.g. rape cultivation for the
production of biodiesel), this
competitive situation leads
to acceptance problems
among consumers.
5 In some markets, renewable
raw materials are not (yet)
competitive. This leads to
undesirable long-term political
regulations (introduction of
biodiesel) and/or subsidies
(use of biogas).
5 In order to convert
renewable raw materials into
innovative and competitive
products, extensive and
thus time-consuming and
expensive research and
development is required.
z Opportunities:
5 As a result of increased
research and development,
innovative products based
on renewable raw materials
are being developed that
significantly improve
competitiveness compared
to fossil raw materials.
5 The supply of raw materials
can thus be placed on a
sustainable basis: Respective
countries are no longer
dependent on expensive
imports.
5 Rising prices for fossil
raw materials can lead
to products based on
renewable raw materials
becoming economically
attractive. However, it must
be considered that rising
prices for fossil raw materials
can also lead to higher
agricultural costs.
5 Breeding improvements
in crops and technological
improvements in their
production can significantly
strengthen the competitive
position of sustainable raw
materials.
5 In general, a trend toward
greater sustainability
and more natural
approaches is recognized
in industrialized countries.
If, in addition, mandatory
certification of sustainable
products is introduced
in these countries, this
can significantly increase
the social acceptance
of products based on
renewable raw materials.
z Threats:
5 The above-mentioned
competition between
commercial crop production
on the one hand and food
production on the other
may lead to a situation in
which the cultivation of
commercial crops is not
accepted by society in the
long term.
5 With the world population
continuing to grow and the
increased demand for food,
this effect may become even
greater.
5 For many products based
on renewable raw materials,
it is highly questionable
whether they can be
produced economically in
the long term compared to
products based on fossil raw
materials.
The opportunities offered by
renewable raw materials seem
to exceed their threats by
far. However, only future will
show how the opportunities
of renewable raw materials
will develop. Since different
countries have different
agricultural preconditions,
different solutions will be
found globally.