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 – increasing household debt because of falling income levels, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, there is backlash against globalization, increasing commodity prices,
geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
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.
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.
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.
Strong track record of project management in the Oil & Gas Operations industry
– Petroleo Brasileiro ADR Reptg 2 Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Ability to recruit top talent
– Petroleo Brasileiro ADR Reptg 2 Pref is one of the leading players in the Oil & Gas Operations industry in United States. It is in a position to attract the best talent available in United States. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
Learning organization
- Petroleo Brasileiro ADR Reptg 2 Pref is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Petroleo Brasileiro ADR Reptg 2 Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Petroleo Brasileiro ADR Reptg 2 Pref emphasize – knowledge, initiative, and innovation.
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.
Ability to lead change in Oil & Gas Operations
– Petroleo Brasileiro ADR Reptg 2 Pref is one of the leading players in the Oil & Gas Operations industry in United States. Over the years it has not only transformed the business landscape in the Oil & Gas Operations industry in United States but also across the existing markets. The ability to lead change has enabled Petroleo Brasileiro ADR Reptg 2 Pref in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 -
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.
Products dominated business model
– Even though Petroleo Brasileiro ADR Reptg 2 Pref has some of the most successful models in the Oil & Gas Operations industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Petroleo Brasileiro ADR Reptg 2 Pref should strive to include more intangible value offerings along with its core products and services.
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.
Slow to strategic competitive environment developments
– As Petroleo Brasileiro ADR Reptg 2 Pref is one of the leading players in the Oil & Gas Operations industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Oil & Gas Operations industry in last five years.
Aligning sales with marketing
– From the outside it seems that Petroleo Brasileiro ADR Reptg 2 Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the Oil & Gas Operations industry have deep experience in developing customer relationships. Marketing department at Petroleo Brasileiro ADR Reptg 2 Pref can leverage the sales team experience to cultivate customer relationships as Petroleo Brasileiro ADR Reptg 2 Pref is planning to shift buying processes online.
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.
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.
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.
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.
Skills based hiring in Oil & Gas Operations industry
– The stress on hiring functional specialists at Petroleo Brasileiro ADR Reptg 2 Pref has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Petroleo Brasileiro ADR Reptg 2 Pref has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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 -
Leveraging digital technologies
– Petroleo Brasileiro ADR Reptg 2 Pref can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Petroleo Brasileiro ADR Reptg 2 Pref in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Oil & Gas Operations industry, and it will provide faster access to the consumers.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Petroleo Brasileiro ADR Reptg 2 Pref can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Petroleo Brasileiro ADR Reptg 2 Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
Manufacturing automation
– Petroleo Brasileiro ADR Reptg 2 Pref can use the latest technology developments to improve its manufacturing and designing process in Oil & Gas Operations sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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.
Buying journey improvements
– Petroleo Brasileiro ADR Reptg 2 Pref can improve the customer journey of consumers in the Oil & Gas Operations industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
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 -
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.
Consumer confidence and its impact on Petroleo Brasileiro ADR Reptg 2 Pref demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Oil & Gas Operations industry and other sectors.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Petroleo Brasileiro ADR Reptg 2 Pref can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Petroleo Brasileiro ADR Reptg 2 Pref prominent markets.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Petroleo Brasileiro ADR Reptg 2 Pref needs to understand the core reasons impacting the Oil & Gas Operations industry. This will help it in building a better workplace.
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.
Shortening product life cycle
– it is one of the major threat that Petroleo Brasileiro ADR Reptg 2 Pref is facing in Oil & Gas Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Petroleo Brasileiro ADR Reptg 2 Pref will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.