Last time we had a look at the detailed SWOT analysis of Shell, an Anglo Dutch-based multinational oil and gas company. This time we will dive deep into the SWOT analysis of Chevron and its work.
Chevron is a company that produces and markets fuels, natural gas and power generation. Chevron Energies was created in the year 1879 with an ambition to enable America to play a key role in the manufacturing of natural gas and oil exploration.
Chevron’s efforts in marketing have helped them a lot. Marketing helps in achieving the desires and preferences of the target audience. Today every other company is using digital marketing, hence it has become a very important and essential skill to learn. You can check our Free MasterClass on Digital Marketing 101 by Karan Shah, the founder and CEO of IIDE.
Before we begin further with the SWOT analysis of Chevron, let us discuss the company, what products it has to offer, its financials and its competitors.
Chevron is an American multinational integrated oil and gas company. The foundation of the company was laid back in 1879. Chevron is the eighth ‘supermajor’ oil company. Its businesses cover the entire oil and gas chain, crude oil and natural gas exploration, production to power generation, transportation, refining, petroleum products marketing, and international crude oil and product trade.
Gas and oil will play an important part in our lives for several decades as the technologies are not much developed as of now. As a major player in the energy industry, Chevron is aware of all the environmental risks of its operations. Their motive is to avoid or minimize these risks.
Chevron also operates in India and has been active since the 1990s. Today they retail petrochemicals, market products and related services, and operate in renewable energies. They also lead community outreach initiatives in the country to promote training, road safety, access to energy and energy efficiency.
|Chairman & CEO||Michael Wirth|
|Origin||The United States|
|No. of Employees||42,628|
|Market Cap||$241.01 Billion (2021)|
|Annual Revenue||$94.4 Billion (2020)|
|Net Income/ Profit||$5.54 Billion (2020)|
Products & Services by Chevron
These are some of the products and services by Chevron:
- Fuel, lubricants and petrochemicals (Delo)
- Oil & gas exploration and production
- Natural gas
- Oil refining
Competitors of Chevron
Here are some of the close competitors of Chevron:
- OMV Group
- Air Liquide
- Cheniere Energy
Let’s begin with the SWOT analysis of Chevron
SWOT Analysis of Chevron
SWOT can tell the areas that are holding you back, or about the loss if you don’t protect them. SWOT analysis is a tool that helps you analyze your company’s strengths, weaknesses, opportunities and threats.
To better understand the SWOT analysis of Chevron, refer to the infographics image below:
Let’s start by discussing the strengths of Chevron from the SWOT analysis of Chevron.
Strengths of Chevron
The strengths of Chevron are the points that helped Chevron to achieve success. Let’s have a look at the strengths:
- Brand Price: Chevron ranks 63rd in line with the Brand Finance report. The price of his emblem is $ 17.822 billion. It is the fifth-biggest oil corporation withinside the world.
- Vertical Integration: Chevron has successfully integrated its business operations vertically by engaging in exploration and production of natural gas, crude oil, etc. The upstream market, involving exploration and production. In the downstream market, it is in the marketing of fuel and lubricants. They enjoy quality control and cost benefits as competitive advantages by vertical integration.
- Research and Development: Chevron is continuously trying to improve its technology to decrease its carbon footprint and greenhouse emission while trying to extract more fuel with fewer efforts. Chevron has many patents registered in their name and Chevron has sustained investment in R&D. R&D helps in reducing expenditure and also gives competitive advantages.
- Gigantic Geographic Presence: Chevron has a big geographic presence across the world. It is found in more than a hundred and eighty nations. Its fundamental hobby is focused in nations including the United States, Nigeria, Congo, Angola, Sierra Leone, South Africa, China, Cambodia, Myanmar, South Arabia, Russia, Denmark, Norway, Canada, Brazil, etc.
- Sponsor of Automobile: Chevron fuel and lubricants are officially recommended by prominent Renault, Nissan, and Mitsubishi Alliance members. Chevron is also the official sponsor to provide fuel and lubricants to professional auto racing teams and the world’s car championships.
- Lubricant and Gas Inventories: As of economic 2015, Chevron has a complete 11.2 billion barrels of oil reserves and 29,437 BcF of herbal fuel online reserves. In 2015, Chevron had 48,485 generating wells. These excessive reserves with Chevron supply it the benefit of being aggressively available in the marketplace and of demonstrating its excessive efficiency.
Weaknesses of Chevron
Weaknesses are the areas where the company is lacking behind and needs improvement. Let’s have a look at the weaknesses of Chevron:
- Increasing Debts: Chevron has been experiencing a growing debt for the past few years. In FY 2015 the debt of the company was $27.8 Billion. In FY 2021 the debt of the company increased to $38.6 Billion. The increasing number of debt means increasing business risk and a subsequential amount of cash flow goes for payment of interest. This may increase the number of financial obligations in future.
- Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
- Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
- History of Environmental & Social Impacts: Chevron has been criticized several times for increasing carbon emission globally. Also, the company is listed under the top 100 companies responsible for 0.9% of global emissions.
- Legal Issues: Chevron has been worried about some of the prison’s intended and illegal actions. It has been fined through the US Environmental Protection Agency (EPA), civil research through the Pennsylvania Department of Environmental Protection, and the Occupational Safety & Health Administration of the US. It became additionally fined for violating legal guidelines as that they’d now no longer stated extra emissions withinside the State of New Mexico. Such a prison count harms the emblem photograph of the company.
Opportunities for Chevron
Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for Chevron Energies:
- Increasing Demand: It is predicted that calls for natural gas are going to increase. This ought to suggest a massive possibility for Chevron to faucet into this.
- Renewable Energy: Chevron is investing heavily to increase solar and wind power which will ultimately help to increase energy storage. Chevron aims to grab the opportunity to become one of the top producers of renewable energy globally in the upcoming years.
- Global Economic Growth: Due to the increase in the demand for energy and increasing dependency on fuels it can be an opportunity for Chevron to grow in its field.
- The Demand-Supply Gap: The gap between demand and supply is widening and it’s a great opportunity for Chevron to take advantage of the excess demand in the market. By grabbing this opportunity Chevron can increase its market hold.
Threats to Chevron
Threats are the issues that can cause problems to the company in future. Let’s have a look at some of the threats to Chevron:
- Lawsuits: The company can face lawsuits in various markets. As there are different laws and a continuous fluctuation of standards regarding products in those markets.
- Eco-friendly Fuel: If the dependability on renewable energy and non-conventional sources of energy increases then the company may face a large drawback as their products are not environment friendly.
- Climate Changes: As energy demand is increasing, carbon dioxide emission in production as well as upstream is expected to increase which needs to be under control for Chevron. Chevron has to find ways to reduce the emission of carbon dioxide or else Chevron has faced increasing costs and strict regulation.
- Political Volatility: Oil and gas have been a very important subject of discussion between many countries for the last century. Energy demands and Production are always surrounded by politics. Chevron has the disadvantage of becoming a victim of political development in the future.
- Intense Competition: Increased competitors’ technologies and profit stability have increased the competition in the industry over the last two years which has put downward pressure on not only profit but also sales.
This ends our detailed SWOT analysis of Chevron. Let us conclude our learning below.
Chevron is a highly technologically advanced company in its field of work. They have proved that they are the greatest player as they survived the competitive market situations while going through the global pandemic in 2020.
Chevron has to work upon the weaknesses mentioned above to continue being one of the supermajor companies in the industry. They have to foresee the upcoming threats to avoid any sort of harm to the company. Ignoring the threats can prove to be lethal in the upcoming years of the company.
One of the biggest reasons that Chevron succeeded in its marketing strategies during the worst situations possibly imaginable, the global pandemic, as they successfully shifted to digital marketing on time.
The importance of digital media has grown exponentially over the past few decades. Businesses are very careful about their marketing, advertising, and social media presence. If you are a Marketing enthusiast the most important thing right now is to understand digital marketing. Check out IIDE’s 3 Month Advanced Online Digital Marketing Course if you want to learn more and improve your skills.
We hope this blog on the SWOT analysis of Chevron has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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