Published in Energy & Power category by MBA Skool Team
Gazprom is one of the leading brands in the energy & power sector. Gazprom SWOT analysis evaluates the brand by its strengths & weaknesses which are the internal factors along with opportunities & threats which are the external factors. Let us start the SWOT Analysis of Gazprom:
Dominant market share globally in the natural gas business as a result of having large natural gas and hydrocarbon reserves in Russia, which gives it a huge platform of growth
Its strong Gas transportation network, the UGSS that also happens to be the world’s largest gas transportation system allows it direct control over its transport activities and helps it in trade
Excellent R&D initiatives (technologies of helium extraction in field conditions of East Siberia and Far East; technologies of distributed compressing to increase operational efficiency of fields in their closing stage; using gas as a motor fuel; harmonization of gas industry national standards and norms) help it reinforce its competitive edgeand enhance its technological progress
Its strategic partnerships with GDF SUEZ(for comprehensive electrometric corrosion inspection of five km of the Center-Vostok underground gas pipeline without pipeline pigs) and with BASF/Wintershall Holding facilities (for tests of BIOROS biopreparation for treatment of environmental areas contaminated with hydrocarbon pollutants) have helped it retain a technological advantage and thereby helped its trade
Its vertically integrated operations coupled with its operational infrastructure boosts its businesses and leads to high profits
Sponsorship of sports teams and events gives good visibility to the brand
Nearly 400,000 people are employed with the company worldwide
Above are the strengths in the SWOT Analysis of Gazprom. The strengths of Gazprom looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Maturing Gas fields in western Siberia (Urengoyskoye, Yamburgskaya, and Medvezhye) whose production is declining over time will adversely impact its gas production in the near future
Old deteriorating pipeline systems which are still in use can lead to operational accidents and other leakages etc., which can impact its finances and revenue
These were the weaknesses in the Gazprom SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Its strategic acquisitions and joint ventures (with companies as Wintershall, WINZ, WINGAS, WIEH, WIEE,Novatek, Rozneftgas, Enel, ArmRozgasProm) will allow it to strengthen its existing business and enable it to gain a foothold in newer sectors
Science and Technology agreements (with United Metallurgical company, Severstal, Chelyabinsk Pipe Rolling Plant, PetroVietnam, VNG, Gasunie) will help it develop newer technologies to reduce operating costs and increae efficiency
Strategic memorandums (with CNPC, Europol GAZ, Shell, Petrovietnam, Caterpillar, Gasunie, and even the Russian railways) will help it increase its presence as well as revenues
Its Investment program which will see a major focus on the following gas production projects: pre-development of the Bovanenkovskoye, Medvezhye, Urengoyskoye, Yamburgskoye, and other fields and projects will improve its competitive advantage and increase its revenues
Above we covered the opportunities in Gazprom SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Governmental Regulation leading to unfavorable pricing policies can result in losses for the company and hamper its growth plans
Weather sensitivity in the Siberian region where it mainly operates can lead to production/transportation problems and increase operational costs
Fluctuation in crude oil and natural gas prices due to gro-politics and other reasons can cause heavy losses to the company
The threats in the SWOT Analysis of Gazprom are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
World’s largest company in terms of natural gas reserves
Corporates, countries and Russian and foreign consumers
Entities which require gas, gas condensate and oil
Global energy company providing reliable, efficient and balanced supply of natural gas and other energy resources
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