San-AI Oil SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 667
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SWOT Analysis of San-AI Oil with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

San-AI Oil

Parent Company

San-AI Oil

Category

Oil and Gas

Sector

Energy

Tagline/ Slogan

Energy Service Company No.1

USP

One of the major fuel oil distributors in Japan

STP

Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require fuel oil, LPG products and other gases

Positioning

A Japan-based company engaged in the provision of petroleum products

SWOT Analysis

Strengths

1. One of the major fuel oil distributors in Japan with a good market share for gasoline; this should allow the company to generate solid earnings and cash flow
2. Its competitive cost base, backed by successful cost-cutting efforts and a moderately conservative financial policy, as well as management's focus on improving leverage
3. It operates as an independent oil distributor and buys and sells oil products on an OEM basis for major brands, which has given it solid leverage against oil refiners and should help it manage its profits
4. It is the dominant pipeline and fuel storage system supplier of aircraft fuel at Haneda Airport, which helps the company stabilize its overall operating performance
5. It concentrates on distribution and retail sales of fuel oil - gasoline, diesel oil, kerosene, and gas - including LPG and city gas, where it has competitive strengths

Weaknesses

1. Its concentrated operations in Japan increases its business risk and also exposes it to local economic and operating conditions among other increasing business risks
2. Rapid improvements in San-Ai's profit margin are unlikely since the company needs to maintain a reasonably high SGA to sustain market share

Opportunities

1. San-Ai’s purchase of  Kygnus Oil from TonenGeneral and Nichimo, each of which owned majority of Kygnus which is a good fit for the company, as evidenced by the higher market share and operating profit resulting from the acquisition
2. The recent increase in the number of flights at Haneda Airport, where San-Ai is the dominant pipeline supplier of aircraft fuel, has helped raise its operating profit as a result of higher transaction volumes
3. Its strategy is to grow its aircraft-related business by increasing its pipeline equipment capacity in line with Haneda's expansion plan

Threats

1. Intense competition with other players in the market, which have greater geographical and financial strength, can erode its market share
2. Strict pricing requirements from retail gasoline outlets, and a decline in overall product demand can bring about decline in its revenues
3. Volatility in oil and natural gas prices, due to geo-political reasons, over which it has n control, and strict environmental regulations to which it has to comply, can adversely impact its business

Competition

Competitors

1. Daimaru Enawin Company Ltd.
2. Fuji Kosan Company Ltd.
3. Sumitomo Corporation.
4. Misumi Co. Ltd

 


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