Petroleo Brasileiro ADR Reptg 2 Pref (PBRa) SWOT Analysis / TOWS Matrix / MBA Resources
Oil & Gas Operations
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Petroleo Brasileiro ADR Reptg 2 Pref (United States)
Based on various researches at Oak Spring University , Petroleo Brasileiro ADR Reptg 2 Pref is operating in a macro-environment that has been destablized by – central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , geopolitical disruptions,
cloud computing is disrupting traditional business models, wage bills are increasing, etc
Introduction to SWOT Analysis of Petroleo Brasileiro ADR Reptg 2 Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Petroleo Brasileiro ADR Reptg 2 Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Petroleo Brasileiro ADR Reptg 2 Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Petroleo Brasileiro ADR Reptg 2 Pref operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Petroleo Brasileiro ADR Reptg 2 Pref can be done for the following purposes –
1. Strategic planning of Petroleo Brasileiro ADR Reptg 2 Pref
2. Improving business portfolio management of Petroleo Brasileiro ADR Reptg 2 Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Oil & Gas Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Petroleo Brasileiro ADR Reptg 2 Pref
Strengths of Petroleo Brasileiro ADR Reptg 2 Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Petroleo Brasileiro ADR Reptg 2 Pref are -
Digital Transformation in Oil & Gas Operations industry
- digital transformation varies from industry to industry. For Petroleo Brasileiro ADR Reptg 2 Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Petroleo Brasileiro ADR Reptg 2 Pref has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Petroleo Brasileiro ADR Reptg 2 Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Petroleo Brasileiro ADR Reptg 2 Pref has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Petroleo Brasileiro ADR Reptg 2 Pref in the Energy sector have low bargaining power. Petroleo Brasileiro ADR Reptg 2 Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Petroleo Brasileiro ADR Reptg 2 Pref to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Petroleo Brasileiro ADR Reptg 2 Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Oil & Gas Operations industry. Secondly the value chain collaborators of Petroleo Brasileiro ADR Reptg 2 Pref have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Petroleo Brasileiro ADR Reptg 2 Pref is one of the most innovative firm in Oil & Gas Operations sector.
Effective Research and Development (R&D)
– Petroleo Brasileiro ADR Reptg 2 Pref has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Petroleo Brasileiro ADR Reptg 2 Pref staying ahead in the Oil & Gas Operations industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Petroleo Brasileiro ADR Reptg 2 Pref has one of the best training and development program in Energy industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Oil & Gas Operations industry
– Petroleo Brasileiro ADR Reptg 2 Pref has clearly differentiated products in the market place. This has enabled Petroleo Brasileiro ADR Reptg 2 Pref to fetch slight price premium compare to the competitors in the Oil & Gas Operations industry. The sustainable margins have also helped Petroleo Brasileiro ADR Reptg 2 Pref to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Petroleo Brasileiro ADR Reptg 2 Pref has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Petroleo Brasileiro ADR Reptg 2 Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Petroleo Brasileiro ADR Reptg 2 Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Petroleo Brasileiro ADR Reptg 2 Pref
– The covid-19 pandemic has put organizational resilience at the centre of everthing Petroleo Brasileiro ADR Reptg 2 Pref does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Petroleo Brasileiro ADR Reptg 2 Pref are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses of Petroleo Brasileiro ADR Reptg 2 Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Petroleo Brasileiro ADR Reptg 2 Pref are -
No frontier risks strategy
– From the 10K / annual statement of Petroleo Brasileiro ADR Reptg 2 Pref, it seems that company is thinking out the frontier risks that can impact Oil & Gas Operations industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Petroleo Brasileiro ADR Reptg 2 Pref is dominated by functional specialists. It is not different from other players in the Oil & Gas Operations industry, but Petroleo Brasileiro ADR Reptg 2 Pref needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Petroleo Brasileiro ADR Reptg 2 Pref to focus more on services in the Oil & Gas Operations industry rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Petroleo Brasileiro ADR Reptg 2 Pref is slow explore the new channels of communication. These new channels of communication can help Petroleo Brasileiro ADR Reptg 2 Pref to provide better information regarding Oil & Gas Operations products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Petroleo Brasileiro ADR Reptg 2 Pref has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the Oil & Gas Operations industry over the last five years. Petroleo Brasileiro ADR Reptg 2 Pref even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Employees’ less understanding of Petroleo Brasileiro ADR Reptg 2 Pref strategy
– From the outside it seems that the employees of Petroleo Brasileiro ADR Reptg 2 Pref don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Lack of clear differentiation of Petroleo Brasileiro ADR Reptg 2 Pref products
– To increase the profitability and margins on the products, Petroleo Brasileiro ADR Reptg 2 Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, Petroleo Brasileiro ADR Reptg 2 Pref has high operating costs in the Oil & Gas Operations industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Petroleo Brasileiro ADR Reptg 2 Pref lucrative customers.
Interest costs
– Compare to the competition, Petroleo Brasileiro ADR Reptg 2 Pref has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee of Petroleo Brasileiro ADR Reptg 2 Pref is just above the Oil & Gas Operations industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Low market penetration in new markets
– Outside its home market of United States, Petroleo Brasileiro ADR Reptg 2 Pref needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative at Petroleo Brasileiro ADR Reptg 2 Pref, in the dynamic environment of Oil & Gas Operations industry it has struggled to respond to the nimble upstart competition. Petroleo Brasileiro ADR Reptg 2 Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Petroleo Brasileiro ADR Reptg 2 Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Petroleo Brasileiro ADR Reptg 2 Pref are -
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Oil & Gas Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Petroleo Brasileiro ADR Reptg 2 Pref can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Petroleo Brasileiro ADR Reptg 2 Pref can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Petroleo Brasileiro ADR Reptg 2 Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Petroleo Brasileiro ADR Reptg 2 Pref can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Petroleo Brasileiro ADR Reptg 2 Pref has opened avenues for new revenue streams for the organization in Oil & Gas Operations industry. This can help Petroleo Brasileiro ADR Reptg 2 Pref to build a more holistic ecosystem for Petroleo Brasileiro ADR Reptg 2 Pref products in the Oil & Gas Operations industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Petroleo Brasileiro ADR Reptg 2 Pref to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Petroleo Brasileiro ADR Reptg 2 Pref to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Petroleo Brasileiro ADR Reptg 2 Pref to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Petroleo Brasileiro ADR Reptg 2 Pref is facing challenges because of the dominance of functional experts in the organization. Petroleo Brasileiro ADR Reptg 2 Pref can utilize new technology in the field of Oil & Gas Operations industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Petroleo Brasileiro ADR Reptg 2 Pref can develop new processes and procedures in Oil & Gas Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Building a culture of innovation
– managers at Petroleo Brasileiro ADR Reptg 2 Pref can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Oil & Gas Operations industry.
Low interest rates
– Even though inflation is raising its head in most developed economies, Petroleo Brasileiro ADR Reptg 2 Pref can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help Petroleo Brasileiro ADR Reptg 2 Pref to increase its market reach. Petroleo Brasileiro ADR Reptg 2 Pref will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Use of Bitcoin and other crypto currencies for transactions in Oil & Gas Operations industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Petroleo Brasileiro ADR Reptg 2 Pref in the Oil & Gas Operations industry. Now Petroleo Brasileiro ADR Reptg 2 Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Petroleo Brasileiro ADR Reptg 2 Pref has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Oil & Gas Operations sector. This continuous investment in analytics has enabled Petroleo Brasileiro ADR Reptg 2 Pref to build a competitive advantage using analytics. The analytics driven competitive advantage can help Petroleo Brasileiro ADR Reptg 2 Pref to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Petroleo Brasileiro ADR Reptg 2 Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Petroleo Brasileiro ADR Reptg 2 Pref are -
Environmental challenges
– Petroleo Brasileiro ADR Reptg 2 Pref needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Petroleo Brasileiro ADR Reptg 2 Pref can take advantage of this fund but it will also bring new competitors in the Oil & Gas Operations industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Oil & Gas Operations industry are lowering. It can presents Petroleo Brasileiro ADR Reptg 2 Pref with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Oil & Gas Operations sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Petroleo Brasileiro ADR Reptg 2 Pref may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Oil & Gas Operations sector.
High dependence on third party suppliers
– Petroleo Brasileiro ADR Reptg 2 Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Petroleo Brasileiro ADR Reptg 2 Pref.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Petroleo Brasileiro ADR Reptg 2 Pref in the Oil & Gas Operations sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Petroleo Brasileiro ADR Reptg 2 Pref has witnessed rapid integration of technology during Covid-19 in the Oil & Gas Operations industry. As one of the leading players in the industry, Petroleo Brasileiro ADR Reptg 2 Pref needs to keep up with the evolution of technology in the Oil & Gas Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Petroleo Brasileiro ADR Reptg 2 Pref business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Petroleo Brasileiro ADR Reptg 2 Pref can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the Oil & Gas Operations industry.
Easy access to finance
– Easy access to finance in Oil & Gas Operations industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Petroleo Brasileiro ADR Reptg 2 Pref can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Petroleo Brasileiro ADR Reptg 2 Pref in Oil & Gas Operations industry. The Oil & Gas Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of Petroleo Brasileiro ADR Reptg 2 Pref
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Petroleo Brasileiro ADR Reptg 2 Pref.
Weighted SWOT Analysis of Petroleo Brasileiro ADR Reptg 2 Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Petroleo Brasileiro ADR Reptg 2 Pref needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Petroleo Brasileiro ADR Reptg 2 Pref is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Petroleo Brasileiro ADR Reptg 2 Pref is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Petroleo Brasileiro ADR Reptg 2 Pref to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Petroleo Brasileiro ADR Reptg 2 Pref needs to make to build a sustainable competitive advantage.