PTT PCL SWOT Analysis, Competitors & USP

Thai Ministry of Finance

Oil and Gas

Energy & Power

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Thailand’s largest energy firm

Corporates/Individuals with energy requirements

Enterprises /individuals which require motor/aviation fuel, lubricants, industry products and polymers

An integrated Thai state-owned energy company

Below are the Strengths in the SWOT Analysis of PTT PCL:

1. PTT, one of the largest and most well known Thai companies, with nearly 9000 employees is the market leader in Thailand and this strong market position enables it to fuel its revenues and profitability
2. The petrochemical group of PTT, the largest in Thailand is totally integrated from the processing and distribution of assorted upstream, intermediate and polymer products, and marketing distribution of polymers, to integrated logistics services and the supply of related utilities, and this integration gives PTT its strong market position
3. A robust revenue growth over the past few years has enabled PTT to fuel its profitability and provided a strong stable base for its growth plans

4. One of the biggest player in Thailand and a strong industry presence

5. Strong backing by the govt means flexibility to perform operations

Here are the weaknesses in the PTT PCL SWOT Analysis:

1. PTT ‘s asset concentration in Thailand places the company at a competitive disadvantage against other global players because it heavily exposes the company to political and economic risks of Thailand, and any disruption in the nation can negatively impact the entire supply chain
2. PTT ‘s lack of presence in any of the developed or developing global markets impairs its chances of revenue growth and profit as compared to its other competitors who are present globally

Following are the Opportunities in PTT PCL SWOT Analysis:

1. PTT has been expanding its overseas coal business (by acquiring equities and major shares in companies, and exploratory rights for coal in some nations), which will enhance its coal related technical expertise and expand its coal asset base
2. PTT has been jointly investing with various companies to expand its power business, which will strengthen the company’s power segment, enhance its competitive edge and help secure and stabilize the supply of energy to Thailand in the long run
3. Through several strategic initiatives (restructuring of subsidiaries and focusing on newer processes) and acquisitions (eg. Straits Bulk and Industrial), PTT’s operating efficiency and profitability can increase and its geographical presence would be broadened

The threats in the SWOT Analysis of PTT PCL are as mentioned:

1. Stringent environmental laws in the industry in which PTT operates can impair its operations, and lead it to revenue losses
2. Fluctuations in the prices of raw materials used by PTT could affect the company’s profit margins
3. Operational hazards related to the exploration and production of oil based products, which can lead to damage of property and loss of lives etc., can lead to prolonged closing down of the company’s installations, thereby decreasing the company’s productivity and leading to huge loss of revenue

Below are the top 4 competitors of PTT PCL:

1. China National Petroleum Corporation
2. ExxonMobil Corporation
3. Thai Oil Public Company Ltd.
4. Petron Corporation