Oil India Limited SWOT Analysis, Competitors & USP
Published by MBA Skool Team, Last Updated: April 12, 2020
SWOT analysis of Oil India Limited analyses the brand by its strengths, weaknesses, opportunities & threats. In Oil India Limited 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 Oil India Limited to benchmark its business & performance as compared to the competitors. Oil India Limited is one of the leading brands in the energy & power sector.
The table below lists the Oil India Limited SWOT (Strengths, Weaknesses, Opportunities, Threats), top Oil India Limited competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Asia's oldest and biggest pioneer oil exploration and production company
Oil India Limited STP
Enterprises and individuals with energy requirements
Entities which require oil, gas, LPG, hydrocarbons etc
The fastest growing energy company with a global presence providing value to the shareholder
SWOT Analysis of Oil India Limited
Oil India Limited Strengths
Below are the Strengths in the SWOT Analysis of Oil India Limited:
1. Its heavy investment and strong focus on R&D has resulted in it developing better exploration methods, increasing efficiency of MEOR (Microbial Enhanced Oil Recovery) processes, reducing flow problems etc., which has resulted in improved production from its oil wells 2. Robust production capabilities enables it to continuously enhance its efficiency, to evaluate opportunities to reduce costs, and to improve processes, thereby helping it increase the reliability of order fulfillment and satisfaction of customer needs. 3. A strong financial performance provides financial stability to the company, which can be leveraged to seek more growth avenues in the future. 4. Its strong acreage position coupled with its integrated business operations gives it a competitive edge over others in the market 5. Its market reputation is extremely strong due to recognition from industry on various facets of excellence like corporate governance, CSR, safety and environmental concerns
Oil India Limited Weaknesses
Here are the weaknesses in the Oil India Limited SWOT Analysis:
1. Although it is present in a few foreign nations, the bulk of its operations are in India, which is a competitive disadvantage as its exposure to local risks is higher than that of its competitors, which carry out a wider scale of operations 2. It presently faces substantial debts and added to it, is raising even more debt, for funding its recent acquisition in the Rovuma hydrocarbon block in Mozambique
Oil India Limited Opportunities
Following are the Opportunities in Oil India Limited SWOT Analysis:
1. Energy demand in global as well as the domestic Indian market is set to accelerate, due to growing oil, fuel demands and OIL is well positioned to capitalize on it 2. Strategic acquisitions of national and overseas exploration blocks and oil and gas properties (like the Rovuma hydrocarbon block in Mozambique, assets in Gabon, shale assets in the Denver-Julesberg Basin in Colorado etc.), and similar agreements will help increase its revenues and thereby, its market share 3. It already has the Navratna status accorded by the GOI, which exempts it from taking the government’s permission for investments and with its increasing revenue record, it can soon get a Maharatna status which will allow it to make investments of INR 5 Billion without the government’s permission 4. New Exploration Licensing Policy by the GOI can possibly see OIL bidding for more blocks and winning more
Oil India Limited Threats
The threats in the SWOT Analysis of Oil India Limited are as mentioned:
1. Geopolitical risks (esp., international sanctions on Iran, the second largest petroleum exporter to India) can push up oil prices, increase India’s import oil bill and thus affect its businesses severely 2. Subsidy burden, which it faces due to GOI policies, can adversely impact its cash flows 3. A highly competitive market, with numerous private players now in the fray, which have larger resources and asset bases, can erode its market share 4. The global economic scenario and political and economic volatility can result in sudden rapid fluctuations in demand/price of oil thereby harming the company’s interests
Oil India Limited Competition
Oil India Limited Competitors
Below are the top 4 competitors of Oil India Limited:
1. ONGC 2. GAIL India Ltd. 3. Cairn India Ltd. 4. IOCL
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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