Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Gazprom analyses the brand by its strengths, weaknesses, opportunities & threats. In Gazprom SWOT Analysis, 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 Gazprom to benchmark its business & performance as compared to the competitors. Gazprom is one of the leading brands in the energy & power sector.
The article below lists the Gazprom SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Gazprom SWOT Analysis:
For Gazprom, 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 Gazprom 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 Gazprom :
1. 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 2. 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 3. 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 4. 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 5. Its vertically integrated operations coupled with its operational infrastructure boosts its businesses and leads to high profits
6. Sponsorship of sports teams and events gives good visibility to the brand
7. Nearly 400,000 people are employed with the company worldwide
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 Gazprom SWOT Analysis:
1.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 2.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
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 Gazprom SWOT Analysis:
1.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 2.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
3.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 4. 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
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 Gazprom are as mentioned:
1.Governmental Regulation leading to unfavorable pricing policies can result in losses for the company and hamper its growth plans 2.Weather sensitivity in the Siberian region where it mainly operates can lead to production/transportation problems and increase operational costs 3.Fluctuation in crude oil and natural gas prices due to gro-politics and other reasons can cause heavy losses to the company
There are several brands in the market which are competing for the same set of customers. Below are the top 4 competitors of Gazprom:
1.OAO Rosneft Oil Company 2.OAO Tatneft 3.OJSC Surgutneftegas
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
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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