In our previous article, we had done a detailed SWOT Analysis of a famous multinational corporation, Suzuki. In this article, we are going to break down the SWOT analysis of Bharat Petroleum – India’s leading Oil & Gas producing corporation.
Bharat Petroleum is among the top 5 largest Oil & Gas Companies in India. Their multipurpose refineries in Kochi and Mumbai have been serving the nation for a long time. Their consistent efforts and determination to serve people have made them rank in the Fortune 500 Oil & Gas Maharatna PSU in India.
Another attribute that made Bharat Petroleum the giant it is now in its marketing efforts. As the world is moving online, the way marketing is done is changing and if you are interested in learning about the newest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
In this blog, we will look at the SWOT analysis of Bharat Petroleum but before that let’s look at some of the facts about the company.
About Bharat Petroleum
Bharat Petroleum Corporation is an Indian government-owned oil & gas corporation currently operating all over India. Bharat Petroleum is the leading producer of petrol, diesel, kerosene, lubricants, liquefied petroleum gas, and rubberized bitumen.
The company’s business has been divided into seven business strategic units retail, lubricants, aviation, refinery, gas, I&C, and LPG. Bharat Petroleum began its operation with the import and marketing of kerosene. Soon the company also took on the challenge to expand its operation and the first drive-through fuel station was built.
Since then, the network of fuel stations has reached the 16,000 mark, with approximately 1 Crore vehicles fueling up every day.
Bharat Petroleum is one of the seven Indian companies to be ranked in the latest Fortune 500 list of the world’s biggest corporations in terms of revenue by acquiring the 358th position and 792nd position on Forbes 2021.
| Founder | Asiatic Petroleum Company |
|---|---|
| Year Founded | 1928 |
| Origin | Mumbai, India |
| No. of Employees | 40,172 |
| Company Type | Public |
| Market Cap | ₹97,019 Crore (2021) |
| Annual Revenue | ₹300,830 Crore (2021) |
| Net Income/ Profit | ₹19,042 Crore (2021) |
Products of Bharat Petroleum:
Bharat Petroleum has been in the Petroleum Industry for more than a half-century and deals in:
- Aviation Turbine Fuel for aircraft
- Hi-speed Diesel
- Liquefied Petroleum Gas (LPG)
- Naphtha (The major raw material for fertilizers)
Before we move ahead to the SWOT analysis of Bharat Petroleum. Let us know some more details about the company.
What’s new with Bharat Petroleum
- June 28, 2023: Bharat Petroleum to raise Rs 18,000 crore via rights issue of shares.
- July 27, 2023: Motilal Oswal recommended Neutral rating on BPCL with a target price of Rs 390.
- July 27, 2023: BPCL Consolidated June 2023 Net Sales at Rs 128,263.56 crore, up 5.93% Y-o-Y.
- August 19, 2023: BPCL announces Rahul Dravid as Brand Ambassador.
- September 07, 2023: Prime Minister Narendra Modi to lay foundation stone for Rs 50,000 crore expansion project of BPCL refinery in MP’s Sagar.
Target Audience of Bharat Petroleum
The target audience includes:
- Consumers of petroleum products (fuel, LPG).
- Retail fuel outlets (gas station owners, fleet operators).
- Lubricants and petrochemical customers.
- Government and public sector organizations.
- Environmental and renewable energy stakeholders.
- International buyers for export/import purposes.
Check out this buyer persona below :
Buyer’s Persona
Name:
Sudeep Singh
Place:
Mumbai
Age:
27 years
Profession:
CA
Motivation
- Cost-effective
- reliable fuel options for vehicles
- LPG for cooking.
Interest & Hobbies
- Reading.
- Playing Soccer.
- Playing Guitar.
Pain Points
- Rising fuel prices
- fuel quality concerns
Social Media Presence
Now that we understand the company’s key business, let’s probe into the SWOT Analysis of Bharat Petroleum.
SWOT Analysis of Bharat Petroleum
A SWOT Analysis is a simple and effective approach that determines a company’s strengths, weaknesses, opportunities, and threats.
We shall do a thorough SWOT Analysis of Bharat Petroleum to gain insights into the internal and external factors that are favorable and unfavorable for a company.
The framework is considered persuasive support for decision-making because it allows an organization to unwrap opportunities for success that were formerly unarticulated and bring out threats before they become overly troublesome.
1. Strengths of Bharat Petroleum
Strengths for the company are the areas where the company is performing well which are helping them to outplay its competitors, thus increasing the market share. The following are the strengths of Bharat Petroleum:
- Large Network – BPCL has over 16,000 fuel stations and is extending its network to reach rural areas of the country. Along with this, they have retail outlets all over the country.
- Research and Development – It is an essential part of BPCL. Their experimentation with crude oil continues so that they extract any other valuable products or enhance the efficiency of the already available ones. A few of their successful findings are semi-synthetic 4T engine oil, hydraulic oils, etc.
- Brand Awareness – It has a well-built brand presence in its domestic market which helps in captivating new customers. Their prominent products such as Bharat Gas and Mak Lubricants have a stronghold in the market.
- Production Capacity – They have two of the largest refineries in their name based in Mumbai and Kochi, and with the help of these, they can cater to the ever-growing demands of the market.
2. Weaknesses of Bharat Petroleum
The areas in which the company is performing low are said to be its weakness. The management can take crucial steps to eliminate its weaknesses. Bharat Petroleum’s major flaws are as follows:
- Government Regulations – As 53% of their lies with the government, so their activities are bound by the legislation and are not able to make profits like private companies.
- Employees – They have more than needed employees carrying out their day-to-day operations. More employees mean an increased cost of production resulting in reduced profits.
- Environmental Issues – The refining process creates a lot of pollution and that’s why their track record on environmental consideration is not very appreciating. This weakness distorts their brand image and can lead to customer retaliation.
- Global Presence – Their operations are limited to India which is a highly competitive market leading to reduced market share for the company. They can surely make more profits if they make a global presence.
3. Opportunities of Bharat Petroleum
Opportunities are favorable external factors. The company needs to grab the opportunities that come its way to gain a competitive advantage.
- Oil Field Discovery – New oil fields can be discovered if the oil prices rise in the future. This will provide an undue advantage to the company over its competitors.
- Increasing Demand – As the population is increasing, demand for oil and gas is also increasing day by day So, the management needs to keep track of it by keeping its supply sufficient to match the market demand.
- Foreign Market – There is an opportunity for the company if it expands its operation to the foreign market as well which will make them earn huge profits. This can be done if the company ties up with many leading foreign players who are ready to invest in BPCL.
- Funding – The company can generate funds by issuing new shares in the market because of the growing number of investors.
4. Threats of Bharat Petroleum
Threats are the challenges for the company that can stop the company from meeting its objectives in the long run.
- Electric Motors and Appliances – Several customers are shifting to the new market segment and are using electric vehicles and solar appliances such as induction cooktops which can lead to reduced demand for the company’s product.
- Stiff Competition – The company faces intense competition from its homegrown and established companies like Reliance, Essar, HPCL, etc.
- Regular Price Fluctuations – The price of crude oil constantly fluctuates in the Middle-East countries according to its irregular excavations which leads to continuous change in their product’s prices.
- Environmental Laws – The implementation of new laws relating to environmental considerations can affect the company’s growth as people are also becoming aware day by day.
Before we conclude the study on the SWOT Analysis of Bharat Petroleum let us have a look at its competitors.
Top 5 Competitors of Bharat Petroleum
- Reliance Industries Ltd: Reliance Industries Limited is an Indian multinational conglomerate, headquartered in Mumbai. Its businesses include energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles.
- Indian Oil Corporation Ltd: Indian Oil Corporation Limited is an Indian multinational oil and gas company under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi.
- Hindustan Petroleum Corporation Ltd: HINDUSTAN CORPORATION LIMITED is a Public incorporated on 21-09-1949. It is classified as a Non-govt company and is registered at RoC-Mumbai. Their state of registration is Maharashtra.
- Adani Enterprises Ltd: Adani Enterprises Limited (AEL) is the flagship company of the Adani Group, one of India’s largest business organizations. Over the years, Adani Enterprises has focused on building stellar infrastructural assets contributing to nation-building.
- Mangalore Refinery and Petrochemicals Ltd: Mangalore Refinery and Petrochemicals Limited (MRPL) is Category 1 schedule ‘A’ Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. MRPL is located in a beautiful hilly terrain, north of Mangaluru city, in Dakshina Kannada District of Karnataka State (India).
This brings us to the end of the case study on the SWOT Analysis of Bharat Petroleum. Let us sum up our understanding in next section.
Conclusion
Bharat Petroleum is one of the leading corporations in the petroleum sector in India. In the SWOT analysis of Bharat Petroleum, we observed that the company has made a presence across the nation and its brands are well established in the market. The company regularly faces challenges with the increase in the number of competitors in the same space.
With increasing awareness of the customers upon the use of electric motors and appliances, the company needs to expand its services and grow it using better marketing efforts. In a changing world where digital marketing is of supreme importance, being well informed in the field is a must for all marketing passionates. If you are eager to learn more, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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