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 energy prices, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy,
there is backlash against globalization, there is increasing trade war between United States & China, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
Analytics focus
– Petroleo Brasileiro ADR Reptg 2 Pref is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Oil & Gas Operations industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Superior customer experience
– The customer experience strategy of Petroleo Brasileiro ADR Reptg 2 Pref in Oil & Gas Operations industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous 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.
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 -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Petroleo Brasileiro ADR Reptg 2 Pref supply chain. Even after few cautionary changes, Petroleo Brasileiro ADR Reptg 2 Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Petroleo Brasileiro ADR Reptg 2 Pref vulnerable to further global disruptions in South East Asia.
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.
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.
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.
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.
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.
High bargaining power of channel partners in Oil & Gas Operations industry
– because of the regulatory requirements in United States, Petroleo Brasileiro ADR Reptg 2 Pref is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Oil & Gas Operations industry.
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.
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.
High cash cycle compare to competitors
Petroleo Brasileiro ADR Reptg 2 Pref has a high cash cycle compare to other players in the Oil & Gas Operations industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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.
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 -
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Oil & Gas Operations industry, but it has also influenced the consumer preferences. Petroleo Brasileiro ADR Reptg 2 Pref can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Loyalty marketing
– Petroleo Brasileiro ADR Reptg 2 Pref has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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 -
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Regulatory challenges
– Petroleo Brasileiro ADR Reptg 2 Pref needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Oil & Gas Operations industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
