Polyard Petroleum Intl Group (8011) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Polyard Petroleum Intl Group (Hong Kong)

Based on various researches at Oak Spring University , Polyard Petroleum Intl Group is operating in a macro-environment that has been destablized by – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc

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Introduction to SWOT Analysis of Polyard Petroleum Intl Group

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Polyard Petroleum Intl Group can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Polyard Petroleum Intl Group, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Polyard Petroleum Intl Group 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Polyard Petroleum Intl Group can be done for the following purposes –
1. Strategic planning of Polyard Petroleum Intl Group
2. Improving business portfolio management of Polyard Petroleum Intl Group
3. Assessing feasibility of the new initiative in Hong Kong
4. Making a Oil & Gas Operations sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Polyard Petroleum Intl Group

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Strengths of Polyard Petroleum Intl Group | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Polyard Petroleum Intl Group are -

Superior customer experience

– The customer experience strategy of Polyard Petroleum Intl Group in Oil & Gas Operations industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Cross disciplinary teams

– Horizontal connected teams at the Polyard Petroleum Intl Group 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.

Highly skilled collaborators

– Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group have helped the firm to develop new products and bring them quickly to the marketplace.

Low bargaining power of suppliers

– Suppliers of Polyard Petroleum Intl Group in the Energy sector have low bargaining power. Polyard Petroleum Intl Group has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Polyard Petroleum Intl Group to manage not only supply disruptions but also source products at highly competitive prices.

Training and development

– Polyard Petroleum Intl Group 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

– Polyard Petroleum Intl Group has clearly differentiated products in the market place. This has enabled Polyard Petroleum Intl Group to fetch slight price premium compare to the competitors in the Oil & Gas Operations industry. The sustainable margins have also helped Polyard Petroleum Intl Group to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Polyard Petroleum Intl Group has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Polyard Petroleum Intl Group 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.

Learning organization

- Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Polyard Petroleum Intl Group emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Polyard Petroleum Intl Group

– The covid-19 pandemic has put organizational resilience at the centre of everthing Polyard Petroleum Intl Group does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Effective Research and Development (R&D)

– Polyard Petroleum Intl Group has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Polyard Petroleum Intl Group 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.

High brand equity

– Polyard Petroleum Intl Group has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Polyard Petroleum Intl Group to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Operational resilience

– The operational resilience strategy of Polyard Petroleum Intl Group comprises – understanding the underlying the factors in the Oil & Gas Operations industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

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Weaknesses of Polyard Petroleum Intl Group | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Polyard Petroleum Intl Group are -

Increasing silos among functional specialists

– The organizational structure of Polyard Petroleum Intl Group is dominated by functional specialists. It is not different from other players in the Oil & Gas Operations industry, but Polyard Petroleum Intl Group needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Polyard Petroleum Intl Group to focus more on services in the Oil & Gas Operations industry rather than just following the product oriented approach.

Products dominated business model

– Even though Polyard Petroleum Intl Group 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. Polyard Petroleum Intl Group should strive to include more intangible value offerings along with its core products and services.

High cash cycle compare to competitors

Polyard Petroleum Intl Group 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.

High operating costs

– Compare to the competitors, Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group lucrative customers.

Lack of clear differentiation of Polyard Petroleum Intl Group products

– To increase the profitability and margins on the products, Polyard Petroleum Intl Group needs to provide more differentiated products than what it is currently offering in the marketplace.

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 Polyard Petroleum Intl Group supply chain. Even after few cautionary changes, Polyard Petroleum Intl Group is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Polyard Petroleum Intl Group vulnerable to further global disruptions in South East Asia.

Aligning sales with marketing

– From the outside it seems that Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group can leverage the sales team experience to cultivate customer relationships as Polyard Petroleum Intl Group is planning to shift buying processes online.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Polyard Petroleum Intl Group is slow explore the new channels of communication. These new channels of communication can help Polyard Petroleum Intl Group 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 to strategic competitive environment developments

– As Polyard Petroleum Intl Group 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.

Need for greater diversity

– Polyard Petroleum Intl Group 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.

Ability to respond to the competition

– As the decision making is very deliberative at Polyard Petroleum Intl Group, in the dynamic environment of Oil & Gas Operations industry it has struggled to respond to the nimble upstart competition. Polyard Petroleum Intl Group has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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Polyard Petroleum Intl Group Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities of Polyard Petroleum Intl Group are -

Manufacturing automation

– Polyard Petroleum Intl Group 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.

Building a culture of innovation

– managers at Polyard Petroleum Intl Group 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.

Developing new processes and practices

– Polyard Petroleum Intl Group 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.

Loyalty marketing

– Polyard Petroleum Intl Group 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.

Leveraging digital technologies

– Polyard Petroleum Intl Group 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.

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. Polyard Petroleum Intl Group 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. Polyard Petroleum Intl Group 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Polyard Petroleum Intl Group can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Learning at scale

– Online learning technologies has now opened space for Polyard Petroleum Intl Group 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.

Creating value in data economy

– The success of analytics program of Polyard Petroleum Intl Group has opened avenues for new revenue streams for the organization in Oil & Gas Operations industry. This can help Polyard Petroleum Intl Group to build a more holistic ecosystem for Polyard Petroleum Intl Group products in the Oil & Gas Operations industry by providing – data insight services, data privacy related products, data based consulting services, etc.

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 Polyard Petroleum Intl Group in the Oil & Gas Operations industry. Now Polyard Petroleum Intl Group can target international markets with far fewer capital restrictions requirements than the existing system.

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. Polyard Petroleum Intl Group can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Better consumer reach

– The expansion of the 5G network will help Polyard Petroleum Intl Group to increase its market reach. Polyard Petroleum Intl Group 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats Polyard Petroleum Intl Group External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats of Polyard Petroleum Intl Group are -

Stagnating economy with rate increase

– Polyard Petroleum Intl Group 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.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Polyard Petroleum Intl Group 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 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. Polyard Petroleum Intl Group needs to understand the core reasons impacting the Oil & Gas Operations industry. This will help it in building a better workplace.

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 Polyard Petroleum Intl Group.

Shortening product life cycle

– it is one of the major threat that Polyard Petroleum Intl Group is facing in Oil & Gas Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Oil & Gas Operations industry are lowering. It can presents Polyard Petroleum Intl Group 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.

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.

Consumer confidence and its impact on Polyard Petroleum Intl Group 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.

Technology acceleration in Forth Industrial Revolution

– Polyard Petroleum Intl Group has witnessed rapid integration of technology during Covid-19 in the Oil & Gas Operations industry. As one of the leading players in the industry, Polyard Petroleum Intl Group 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, Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group prominent markets.

Environmental challenges

– Polyard Petroleum Intl Group 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. Polyard Petroleum Intl Group can take advantage of this fund but it will also bring new competitors in the Oil & Gas Operations industry.

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. Polyard Petroleum Intl Group 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.

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.

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Weighted SWOT Analysis of Polyard Petroleum Intl Group Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group 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 Polyard Petroleum Intl Group needs to make to build a sustainable competitive advantage.

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