Sasol Ltd SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 1757
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SWOT Analysis of Sasol Ltd with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Sasol Ltd

Parent Company

Sasol Ltd

Category

Oil and Gas/Chemical

Sector

Energy

Tagline/ Slogan

Reaching new frontiers

USP

Largest producer of synthetic fuel/motor fuel from coal

STP

Segment

Corporates and individuals with energy/chemical requirements

Target Group

Enterprises which require petroleum products, other fuels and chemicals

Positioning

An integrated energy and chemical business group

SWOT Analysis

Strengths

1. Sasol has more than 34,000 employees working in 38 countries across diverse geographic markets (Africa, Europe, Americas and Asia-Pacific) which helps it gain sustainable revenue streams and reduces the risks associated with depending on a concentrated market
2. A broad and diverse business portfolio (mining, gas, synthetic fuels and chemicals) enables it to diversify business risks and offset downturns in any one segment
3. Sasol’s integrated operations across Africa and other international markets enable it to spread its cost base and attain operating efficiencies, thus expanding its scale

4. It is one of the largest corporate tax payer in South Africa

Weaknesses

1. Power generation/supply interruption problems from Eskom (South African state owned) on which Sasol largely depends
2. Weak presence in the fast growing markets of Asia-Pacific as compared to Europe, America and Africa deprives it of an opportunity to boost its revenue growth
3. Legal issues from allegations of collusion and excessive pricing triggering Govt. scrutiny) dilutes its brand identity and increases their operational expenses

Opportunities

1. Growing demand for coal conversion technologies can create growth opportunities for Sasol internationally due to its significant capabilities in this field, namely its proprietary Coal-to-Liquid & Coal-to-Gas technologies
2. Sasol’s efforts to improve Carbon and Energy efficiency (through MOUs with Norwegian state owned Gassanova, which could help Sasol participate in the currently under-construction European CO2 Technology Center, or its MOU with the Indonesian Govt. for a screening study into the viability of a Coal-to-Liquid project there, using Sasol’s proprietary technology) can enhance its environment-friendly brand image
3. Sasol has been expanding its foreign operations (in the US, and in various parts of Africa) which can be leveraged to further its revenues and business

4. A growing global energy demand (linked to the demand for oil, which is one of Sasol’s highest revenue earners) can help Sasol leverage its oil operations

Threats

1. Stringent Govt. Regulations in South Africa (eg. The Mineral and Petroleum Resources development Act, 2004, the Petroleum Products Amendment Act and The Petroleum Pipelines Act etc) may impose on Sasol, new liabilities or increase operating expenses, thereby resulting in a decline in its profitability
2. Volatility in refining margins/fuel prices may have an adverse impact on Sasol’s revenues, as a huge portion of Sasol’s turnover is from its sale of petroleum products
3. Sasol earns a significant portion of its revenues from international operations, and hence, risks related to such foreign operations can be a threat to Sasol’s business

Competition

Competitors

1. ExxonMobil Corporation
2. Royal Dutch Shell plc.
3. Chevron Phillips Chemical Company LLC

4. BP plc



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