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Detailed SWOT Analysis of Eni – An Italian Multinational Oil & Gas Company

by | Case Studies | 0 comments

We attempted a 360° SWOT analysis of Enel, an Italian multinational electricity and gas utility company, in the past, and will now go deeper into the SWOT Analysis of Eni.

Eni is a global energy company, ranked 216th on the Fortune Global 500 list by revenue and 24th in the energy sector, as of 2020 and is active at every stage of the value chain: including both traditional, biorefining and chemicals. 

Their eminent presence in 68 countries is established because of their strong administration, initiatives launched in line with 17 SDGs, combined with powerful marketing efforts. If you are intrigued and want to understand the minds behind it, check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

This blog will not only give you a SWOT Analysis of Eni but also give insights into the company’s operations, structure and quick overview. Let’s begin by knowing more about Eni.

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About Eni

SWOT Analysis of Eni - Eni Gas & Oil Exploration

Founded in 1953 and headquartered in Rome, Eni is active at every stage of the value chain: from natural gas and oil to co-generated electricity and renewables, operating at all levels of the market, right down to the end-user. It is an outgrowth of Agip, an oil and gas agency set up by the Italian fascist government in the 1920s. The logo is a six-legged dog, an imaginary animal symbolizing the sum of a car’s four wheels and the two legs of its driver.

They aim at a low-carbon future, with the help of diversified business projects and local development initiatives in line with 17 SDG. Eni claims that all its products and processes will be fully decarbonized by 2050. 

Eni divisions are involved in oil and natural gas exploration, production, transportation, refining, and retailing. Also recently, it has entered the Greek solar power sector by acquiring Solar Konzept Greece as part of its ambition to transition away from oil and gas and toward a more sustainable future.

Quick Stats on Eni
Founder Enrico Mattei
Year Founded 1953
Origin Rome, Italy
No. of Employees 31,000+
Company Type Public
Market Cap $58.31 Billion (2022)
Annual Revenue €44 Billion (2020)
Net Income/ Profit €8.6 Billion (2020)

 

SWOT Analysis of Eni - Eni Fuel Station


Products & Services by Eni

These are some of the products and services by Eni:

  • Eni Station 
  • Oil products
  • Petroleum products
  • Natural Gas products
  • Eni Rewind


Competitors of Eni

Here are some of the close competitors of Eni:

  • Wartsila
  • BP
  • TotalEnergies
  • Chevron
  • LUKOIL
  • Engie Portugal


Let’s begin with the SWOT analysis of Eni


SWOT Analysis of Eni

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.

SWOT Analysis of Eni - SWOT Infographics of Eni

Let’s start by discussing the strengths of Eni from the SWOT analysis of Eni.

Strengths of Eni

The strengths of Eni are the points that helped Eni to achieve success. Let’s have a look at the strengths:

  • Supermajor Company: Eni is one of the supermajor companies in the oil and gas industry which is in itself one of the biggest strengths of Eni. It has operations in more than 66 countries including Italy with a market capitalization of US$36.08 Billion by year-end 2020.
  • Operates in Many Fields: Other than the oil and gas industry in Italy, the company has a broad presence in fields including contracting, nuclear power, energy, mining, chemicals and plastics, refining/extraction and distribution machinery, the hospitality industry and even the textile industry and news.
  • Exploration & Production: Eni is deeply involved in the exploration and production of great oil and gas which gives the company a position as the main extractor of these two essential commodities. It has its core oil fields in Venezuela, the Barents Sea, Yamal Peninsula and Iraq. 
  • Vertical Integration: Eni has successfully integrated its business operations vertically by engaging in the exploration and production of natural gas, oil, etc. The upstream market involves exploration and production. In the downstream market, it is in the marketing of power generation and mining. They enjoy quality control and cost benefits as competitive advantages by vertical integration.
  • Research and Development: Eni is continuously trying to improve its technology to decrease its carbon footprint and greenhouse emission while trying to extract more fuel with fewer efforts. Eni has many patents registered in their name and Eni has sustained investment in R&D. R&D helps in reducing expenditure and also gives competitive advantages.
  • Diverse Products/Services: It has a rather successful record at consumer-driven innovation. ENI has ventured with a variety of companies outside of the energy sector throughout the years and has been able to diversify its revenue streams beyond the energy industry and the oil & gas operations section. 
  • Sustainable Development: Eni is continuously bringing about changes towards a sustainable future, like the innovation of health care in Angola. 


Weaknesses of
Eni

Weaknesses are the areas where the company is lacking behind and needs improvement. Let’s have a look at the weaknesses of Eni:

  • High Employee Turnover: Compared to the industry standard, Eni has to spend more on retaining and training employees, even at lower levels of the organisation.
  • Local Monopolies: Companies that ENI can exploit are fast disappearing. The customer network that ENI has promoted is proving less and less effective.
  • Declining Market Share: Even when revenues are high, the oil and gas industry grows faster than the company. As a result, Eni must carefully examine the numerous trends in the energy business and determine what it has to do to achieve future growth.
  • Expensive Tech: Because of the extensive use of the internet and AI in this sector, the cost of innovations for Eni rises, along with building a robust supply chain as the significance of Eni’s dealer network is declining.
  • Limitations in Diversifying: Apart from its core business, though Eni is a leader in its industry, is facing issues while diversifying into other product segments with the present strategies. 


Opportunities for Eni

Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for Eni:

  • Accelerated Tech: New advances in tech are increasing industrial productivity, allowing suppliers to manufacture a wide range of products and Eni can also make use of this advancement to diversify and innovate. Eni has already begun exploiting this opportunity.
  • Government Regulations: Oil & Gas is a heavily regulated industry, which gives an edge to Eni because of its strong and early foundation, as it is becoming difficult for new players to enter the market. This allows Eni to build a strong customer base.
  • Environmental Changes: Climate changes and new environmental policies are rapidly demanding sustainable alternatives, and here’s where Eni steps in. Because of a well-established network and advancement in the industry, Eni can innovate in sync with the demands. 
  • Global Expansion: Eni is known for entering new markets and conquering them and hence, expansion to new locations and countries is always an opportunity for the firm. 
  • New Acquisitions & Partnerships: Eni is always ahead in acquiring new opportunities and partnering with other nations for sustainable growth as recently Eni cuts the ribbon of a 48-MW wind park in Kazakhstan and initiated operations of 400MWh of battery storage project at Texas in the US. 


Threats to Eni

Threats are the issues that can cause problems to the company in future. Let’s have a look at some of the threats to Eni:

  • Growing Competitors: The industry of Eni is expanding and growing every day and new players are entering the market with better and more efficient technologies. Given the large customer base, ENI can’t respond quickly to the needs of the niche markets that disruptors are focusing on.
  • Saturation and Stagnation: Adoption of oil & gas products and new trends is slow in rural markets and it is more costly for Eni to serve the rural customers than urban customers given the vast distances and lack of infrastructure. 
  • 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 Eni. Eni has to find ways to reduce the emission of carbon dioxide or else Eni 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. Eni has the disadvantage of becoming a victim of political development in the future.
  • 2022 Russia & Ukraine War: The 2022 war between Russia & Ukraine can significantly affect the businesses of Eni because of the products that Eni manufacture i.e. Petroleum, natural gas, petroleum products and Russia has share value as one of the major producers of gas & fuel. The war between the two nations is causing price hikes of commodities that are essential for Eni and similar businesses like Eni.


This ends our detailed SWOT analysis of Eni. Let us conclude our learning below.

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To Conclude

Eni 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.

Eni 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 Eni 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 Eni has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Eni, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Eni in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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