Valero Energy SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Valero Energy, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Valero Energy to benchmark its business & performance as compared to the competitors, and make strategic improvements. Valero Energy is one of the leading brands in the energy & power sector.
The article below lists the Valero Energy SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Valero Energy SWOT Analysis:
In this article:
For Valero Energy, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Valero Energy looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Valero Energy :
1.With a combined throughput capacity of approximately nearly three million bpd, Valero is the largest refiner in North America
2.Large conversion capacity and feedstock flexibility enables Valero to convert more low.quality, discounted feedstock into high quality products and charge premium rates
3.Valero has more catalytic cracking and coking capacity than some refining companies' total conversion capacity
4.The diverse product portfolio enables the company to fulfill various consumer needs and protect itself against demand fluctuations for certain specific products.
5.Employ approximately 10,500 people, and assets include 16 petroleum refineries with a combined throughput capacity of approximately 3 million barrels per day
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Valero Energy SWOT Analysis:
1.Low refining margins in the ethanol segment
2.High dependence of Valero on the US market exposes it to the risk of economic slowdown and government regulations
3.Lack of own supply of feed stocks
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Valero Energy SWOT Analysis:
1.Expansion of its non.conventional fuels business through various initiatives to diversify its fuel output and open up a new source of revenue generation for the company as well as diversify its business risks
2.New pipeline expansion projects to transport Canadian crude oil will further boost crude oil logistics between key markets and consequently render a cost advantage to refining companies
3.Increased shale oil and gas production within the US will create resource and cost advantages to North American refineries
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Valero Energy are as mentioned:
1.Operations are subject to extensive federal, state, and local environmental laws and regulations
2.Operational hazards and uninsured risks
3.Financial and operational performance is highly dependent on commodity prices in the market.
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Valero Energy:
1.Alon USA Energy, Inc.
Hence this concludes the Valero Energy SWOT analysis.
Continue reading more about the brand/company.
|Valero Energy Overview|
Oil and Gas
Fortune 500 international manufacturer and a marketer of transportation fuels
|Valero Energy STP|
Corporates and individuals in US, Canada, the UK and Aruba looking to fulfill energy needs
Enterprises looking to produce energy , people who depend on petrol, diesel for vehicles and domestic uses
Full filing the energy needs of US, Canada, the UK and Aruba
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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