Published in Energy & Power category by MBA Skool Team
Rosneft is one of the leading brands in the energy & power sector. Rosneft 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 Rosneft:
Its vertically integrated businesses across the energy value chain (exploration, production, refining, marketing and distribution) with a huge employee base of nearly 170,000 provide it opportunities to optimize its business while minimizing its risks
Its strategic refining asset locations in the Volga-Urals, East Siberia, Krasnodar and trans-shipment facilities at Tuapse and Nakhodka allow the company to be competitive in the market
Its strong marketing operations to both wholesale and retail customers in Russia gives it a widespread visibility in the market, thus helping it penetrate new markets
Its wide asset portfolio producing petroleum products and petrochemicals throughout Russia helps it achieve financial success
Its strong financial performance (with tremendous increase of evenues, net profit and operating profit) over the previous years has brought it out as a company with robust foundations
Above are the strengths in the SWOT Analysis of Rosneft. The strengths of Rosneft looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Heavy dependence on external pipelines (belonging to Transneft) puts it at a competitive disadvantage against companies with their own pipeline network.
Concentration of Oil and Gas reserves in only western Siberia increases the business risk of the company, which could lead to serious repercussions on its finances in case of any geo-political risks from the region
Restricted autonomy of the company puts it at a competitive disadvantage against other market players
These were the weaknesses in the Rosneft SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Operations expansion via collaborations with groups such as Eni, ITERA, Kynsko-Chaselskoye Neftegaz, Gazprom etc. recently will help it in expanding its geographic reach
Collaboration with Exxon Mobil in certain international projects in the Black Sea, Caspian Sea, Kara Sea etc. and certain stake acquisitions in the US gulf coast will help it in technological progress and bring in further revenues
Stake acquisition in TNK-BP represents a unique and compelling strategic opportunity and also creates a significant value for Rosneft
Cooperation agreement with Statoil (to jointly explore offshore fields in the Russian sections of the Barents Sea and Sea of Okhotsk, the Norwegian part of the Barents Sea and three blocks in the Sea of Okhotsk, namely Magadan 1, Lisyansky, and Kashevarovsky) will help it increase and develop its offshore assets
Above we covered the opportunities in Rosneft SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Fluctuations in crude /natural oil price can affect its operations and sales and bring about losses in its revenues
Stringent HSE (Health, security and environment) regulations adopted by the governments of the areas where it operates may lead to it incurring substantial capital and operating costs to meet such standards
Natural Gas production/marketing risks such as the fact that the transporting of oil by Rosneft depends on Gazprom’s pipeline system and that market rates are decided by Russia’s government and any change in regulation by these entities can serve against Rosneft’s interests
The threats in the SWOT Analysis of Rosneft are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Rosneft SWOT analysis.
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The table below gives the brand overview along with its target market, segmentation, positioning & USP
Russia's leading extraction and refinement company
Markets in Europe, US, and CIS nations
Entities/companies which require hydrocarbon, petroleum and petrochemicals
The leader of Russia’s petroleum industry, with a responsibility to the society at large; minimizing any negative impact on the environment.
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