Rosneft SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 1614
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SWOT Analysis of Rosneft with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Rosneft

Parent Company

Rosneftegaz

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

Energy for Growth

USP

Russia's leading extraction and refinement company

STP

Segment

Markets in Europe, US, and CIS nations

Target Group

Entities/companies which require hydrocarbon, petroleum and petrochemicals

Positioning

The leader of Russia’s petroleum industry, with a responsibility to the society at large; minimizing any negative impact on the environment.

SWOT Analysis

Strengths

1. Its vertically integrated businesses across the energy value chain (exploration, production, refining, marketing and distribution) with a huge employee base of nearly 170,000 provide it opportunities to optimize its business while minimizing its risks
2. Its strategic refining asset locations in the Volga-Urals, East Siberia, Krasnodar and trans-shipment facilities at Tuapse and Nakhodka allow the company to be competitive in the market
3. Its strong marketing operations to both wholesale and retail customers in Russia gives it a widespread visibility in the market, thus helping it penetrate new markets
4. Its wide asset portfolio producing petroleum products and petrochemicals throughout Russia helps it achieve financial success
5. Its strong financial performance (with tremendous increase of evenues, net profit and operating profit) over the previous years has brought it out as a company with robust foundations

Weaknesses

1.Heavy dependence on external pipelines (belonging to Transneft) puts it at a competitive disadvantage against companies with their own pipeline network.
2.Concentration of Oil and Gas reserves in only western Siberia increases the business risk of the company, which could lead to serious repercussions on its finances in case of any geo-political risks from the region
3. Restricted autonomy of the company puts it at a competitive disadvantage against other market players

Opportunities

1.Operations expansion via collaborations with groups such as Eni, ITERA, Kynsko-Chaselskoye Neftegaz, Gazprom etc. recently will help it in expanding its geographic reach
2. Collaboration with Exxon Mobil in certain international projects in the Black Sea, Caspian Sea, Kara Sea etc. and certain stake acquisitions in the US gulf coast will help it in technological progress and bring in further revenues
3. Stake acquisition in TNK-BP represents a unique and compelling strategic opportunity and also creates a significant value for Rosneft
4. Cooperation agreement with Statoil (to jointly explore offshore fields in the Russian sections of the Barents Sea and Sea of Okhotsk, the Norwegian part of the Barents Sea and three blocks in the Sea of Okhotsk, namely Magadan 1, Lisyansky, and Kashevarovsky) will help it increase and develop its offshore assets

Threats

1.Fluctuations in crude /natural oil price can affect its operations and sales and bring about losses in its revenues
2.Stringent HSE (Health, security and environment) regulations adopted by the governments of the areas where it operates may lead to it incurring substantial capital and operating costs to meet such standards
3.Natural Gas production/marketing risks such as the fact that the transporting of oil by Rosneft depends on Gazprom’s pipeline system and that market rates are decided by Russia’s government and any change in regulation by these entities can serve against Rosneft’s interests

Competition

Competitors

1.OAO Lukoil
2.ITERA group Ltd
3.OAO Gazprom Neft



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