SWOT Analysis of Oil and Gas Development Company with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis on PETRONAS Oil and Gas Development Company Parent Company Petroliam Nasional Berhad (Petronas) Category Oil and Gas Sector Energy & Lubricant Tagline/ Slogan Reimagining Energy The leading Oil & Gas Industry Player in Malaysia USP /ASEAN STP Corporates and individuals in Malaysia / ASEAN looking Segment to fulfil energy needs Enterprises looking to produce energy , people who depend on petrol, diesel for vehicles and domestic Target Group uses Company engaged in the exploration, development, production and sale of oil and gas resources in Malaysia Positioning & ASEAN SWOT Analysis 1.Local market leader in terms of reserves, production and acreage, and is listed on all stock exchanges in Malaysia and also on the London Stock Exchange 2.Petronas has attained the benchmark position as an industry leader, in the Malaysia Oil & Gas industry 3.Company, equipped with its Strategic Business plan in line with augmenting energy supply in the Country, has Strengths developed strategies to optimize reserves additions and its production base 4. Petronas live up among major company to have been listed at the London Stock Exchange and well-known brand advertised in major events. 5. Over 20 thousand of people form a part of the workforce 1. Accelerate Production Growth: by continuing to accelerate production growth through utilizing cutting edge technologies 1. Exploration and drilling risks 4. which would include swap of assets for reserves acquisition with percentage of working interest in international market. Opportunities 3. 2. 3. Exxon-Mobil Petroleum Ltd Competitors 2. Compliance costs could increase and place further Threats pressure on Company resources. Fast track development of its current and future projects at an aggressive pace without compromising quality and transparency 4. Exchange rate and Reserve Depletion Competition 1. Commodity price risk can result in material and adverse movement in the group's financial performance.Under Performance of Oil and Gas fields means limited market share 1. Royal Dutch Shell Ltd .Acquire overseas acreage by buying stakes in existing viable producing fields 2. Oil & Gas opportunities and joint venture collaborations outside Malaysia.Dependence on Domestic market for growth Weaknesses 2. . Also.Porter's Five Forces Model for the Oil & Gas Industry Porter's Five Forces framework is one useful strategic tool to evaluate potential opportunities and threats/risks for the oil and gas industry. This strategy will give them a competitive advantage over new oil and gas companies which now enter the industry. The five key factors of this model are: Competitive rivalry: The competitiveness of oil and gas industry and especially in the upstream sector of the industry is significantly intensive. to mention that this whole strategy of the big IOCs can force the new competitors to spend more money The big IOCs or as we call it Integrated Oil and Gas Companies which can easy compete with new competitors due to economics of scale Oil and Gas prices volatility Oil and Gas Reserves are usually located in war zones or geographical areas with geopolitical conflicts or political instability National and international law restrictions which can affect the new entrance of a company in the oil and gas business Threat of Substitutes: The main alternatives sources to oil and gas for producing energy which used for electricity. especially the upstream segments are: Huge capital required National Oil Companies control more than 90% of the proven oil and gas reserves Increase of the internal competition within the industry The big oil and gas companies can increase their R&D spending which will give them a boost regarding innovation and improve existing technologies. heating. This strategy requires a big amount of investments in R&D and producing procedures. transportation. so the possibility for substitutes to dominate the global energy mix until 2040 is very small. Threat of New Entrants: The factors that affect the newest companies to enter oil and gas business. are: Nuclear Energy Coal Hydrogen Biofuels and other renewables sources such as solar and wind energy These alternative sources of energy can replace a high amount of hydrocarbons use in the global energy mix according to their performance. quality and price of course. etc. d. China. It is known. Retrieved February 2. that global oil benchmarks determine the oil price. . WTI and Dubai | Investopedia. Buyers are interested in the price and the quality of a product. Japan. Japan.). (n. Finally to mention that the only bargaining power of buyers in the oil industry is only what quality of the oil they will buy. Higher bargaining power have the buyers only which consume enormous amounts of oil and gas such as EU. countries of the EU. etc. USA. 2016 So it is obvious from the above that the buyers cannot affect the oil prices.) The bargaining power of buyers in oil and gas industry is relatively small due to the nature of this industry. and the Main Oil Benchmarks are: Brent Blend West Texas Intermediate (WTI) Dubai/Oman Understanding Benchmark Oils: Brent Blend.Bargaining Power of Buyers: The main buyers of oil and gas products are: Refineries National Oil Companies International Oil and Gas companies Distribution companies Traders Countries (USA. and India in comparison with other countries. China. (n. and Petrobras. Another great player in the side of the suppliers are the oil rich countries (as they call them oil producing countries) or else OPEC has a significant bargaining power. Although these oil reserves have one of the lowest cost producing price between the oil industry in contrast with oil producing from oil sands and deep-water oil fields which are expensive regarding costs of production.. THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DEC.d. . OPEC nations own at least 70% or the world's oil proven reserves. 2016 These companies can be the big International oil companies such as Chevron. The ability of those companies to affect oil prices and the industry is high due to their business involvement on all of the business segments of oil and gas industry. Shell and Exxon Mobil or National oil companies such as Saudi Aramco. Gazprom.).. Retrieved February 24.Bargaining Power of Suppliers: Some big suppliers in the oil and gas industry are fully integrated oil and gas industry (International and National Oil Companies) which are active in the whole value chain of oil and gas sector. so their bargaining power is significantly greater than the buyers.. the national oil company was used as a political tool from the political elite of the country from 2000 and beyond. Venezuela. and Mexico luck in any new oil and technologies due to the control of their oil sector from their oil stated companies. 2016 Based on the above graph from Reuters it is obvious that OPEC controls and more than the 30% of the world oil production per day which gives the ability to this organization to affect the global oil prices significantly by cutting or adding more production.8 reasons why the politics of oil have changed | World Economic Forum. Retrieved February 24.d. so this give them also more bargaining power. In the case of the Venezuela. specifically was . (n. So this situation can drive countries such as Mexico to become importers of oil due to the fall in oil production because in the case of Mexico the oil and gas sector of this country was close to the international oil companies until 2014. some countries like Iran. On the other hand.). used to fund large. rich social project. This situation has driven the economy of Venezuela and of course the government budget to increase its dependence on oil revenues. and they usually manage a country's hydrocarbons resources. D.Some general characteristics for National Oil Companies are: Unlike the IOCs. differently than the IOCs. 2009. Venezuela has closed its oil sector to foreign oil and gas companies with result to be close to bankruptcy at the beginning of 2016. not monetization. At the same time. but: serving the national interests. the aim of the NOCs is. but their bargaining power will be significant high until an alternative source of energy will be discovered in the future which can replace hydrocarbons.. The Changing Relationship between NOCs and IOCs in the LNG Chain Oxford Institute for Energy Studies The future for IOCs and NOCs is likely one in which they will both compete and co-operate. . supporting the local economies and even protecting the territorial environments Source: Ledesma. the NOCs are governmentally controlled. Having been given the privilege to the domestic reserves.
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