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Detailed SWOT Analysis of GAIL – One Of The Largest Natural Gas Companies In India

by | Case Studies | 0 comments

We have previously written a comprehensive case study on the marketing strategy of GAIL. This time we are back with another article on the SWOT analysis of GAIL.

The PNG gas which is coming in our house gas pipeline or the LPG gas which is connected to our stove is produced by GAIL. GAIL – Gas Authority Of India Limited is one of the largest natural gas companies in India. Their consistent efforts and determination to serve people have made them rank 45th in the India 100 2021 ranking of the most valuable and influential brands.   

Another attribute that made GAIL the giant is 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 GAIL but before that let’s look at some of the facts about the company.

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About GAIL

SWOT Analysis of GAIL - GAIL Headquarter
(GAIL Headquarter, Source: Zee Business)

GAIL (India) was created on August 16, 1984, and was previously known as Gas Authority of India Limited. It was established to create gas sector infrastructure to assist the long-term development of the country’s natural gas sector. The headquarters of the company seems to be in New Delhi, India. The Indian government’s Ministry of Petroleum and Natural Gas owns it. 

The company’s primary segments are natural gas, liquid hydrocarbons, LPG transmission, petrochemicals, city gas distribution, non-conventional energies such as solar and wind, exploration and production, petrochemicals, GAILTEL, and power generation. 

The country’s natural gas behemoth, GAIL (India) Limited, has been named to Forbes’ 500 lists of the World’s Best Employers 2020. Only 31 Indian businesses were chosen from a pool of 750 from 45 countries, with only nine Indian PSEs cutting and from those nine PSEs, GAIL is in 5th position.

Quick Stats on GAIL
Founder Government of India
Year Founded 1984
Origin New Delhi, India
No. of Employees 4,705+
Company Type Government Corporation
Market Cap Rs 60,078.41 Crore (2021)
Annual Revenue Rs 71,405.485 Crore (2020)
Net Income/ Profit Rs 49,422.05 Crore (2020)

 

SWOT Analysis of GAIL - Employee Working At GAIL

 

Products by GAIL

  • Natural gas
  • Petrochemical
  • Liquid hydrocarbons
  • Liquefied petroleum gas transmission (LPG)
  • Renewable Energy (Solar Wind)
  • City gas distribution
  • E&P


Competitors of GAIL

  •  Indian oil
  •  Bharat petroleum
  •  Reliance industries ltd
  •  Gujarat gas
  •  Greenk
  •  Manager gas
  •  ONGC

Now that we understand the company’s key business, let’s look after the SWOT Analysis of GAIL.


SWOT Analysis of GAIL

SWOT Analysis of GAIL can show how a well-established company uses its opportunities to ensure its growth. It can show how the company takes advantage of its strengths to use the opportunities while working on its weaknesses. SWOT Analysis of GAIL will also reveal its expansion plans.

To better understand the SWOT analysis of GAIL, refer to the infographic below:

SWOT Analysis of GAIL - SWOT Infographics of GAIL

Now first let’s begin with the strengths of the company from the SWOT analysis of GAIL.

Strengths of GAIL

  • Strong Brand Presence: It has a strong brand identification and a significant consumer base as well as geographical reach.
  • Robust Marketing & Business Model: It also features a robust business model and a market-leading concept. GAIL is always ahead with its marketing campaigns to save the planet by using natural resources. This in turn has increased the brand reputation in the public’s eye.
  • Successful in its Market: It is the most successful corporation in the natural gas market and it is one of the top companies in India in the natural gas sector.
  • Organic Expansion: Through a broad network of trunk pipelines, GAIL has proven organic expansion in gas transportation.

SWOT Analysis of GAIL - GAIL Campagin 2016

Did you know? To sensitize people to the effects of air pollution, GAIL India launched a campaign in 2016. This was a moderate digital action that has digitally touched 60 million lives. The charm of learning and implementing content marketing is that it gives us real creative freedom and can propose content that is relevant to the audience.


Weaknesses of GAIL

  • Financial & Technological Resources: The company’s fundamental issue is a lack of financial and technological resources, which has contributed to India’s economic slump.
  • Government-Owned: Because the Gail firm is controlled by the government, it harms the company’s operations and may limit its potential.
  • A Decline in Monetary Efficiency: It has a lack of experience operating in US markets, as well as a depreciation of the Mexican peso, which has resulted in a decline in monetary efficiency.


Opportunities for GAIL

  • Spreading Awareness: GAIL should implement a “Natural Awareness Program” to educate the public on the various uses of natural gas.
  • Increase its Market Share: The strategic purchase of natural gas will help the company meet the growing demand in the domestic market, thereby maintaining and increasing its market share.
  • Improving R&D: The R&D project will help the company develop new sources of revenue by introducing new products and services.
  • India’s Energy Consumption is Expected to Grow: In recent years, India’s energy consumption has grown faster and is expected to grow further. So there are more opportunities for the company.


Threats to GAIL

  • Risk of Production: Drilling natural gas wells involve many risks, including the risk that the company may not encounter natural gas reservoirs with commercial production capacity.
  • Fierce Competition: The company faces fierce competition in the different market segments it serves, which is a threat for the company. Because of fierce competition from both domestic and international competitors, the company may lose its identity as a powerful brand name.
  • Monetary Stability: The rising depreciation of the Mexican peso and the US dollar may jeopardise the monetary stability of businesses.

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

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To Conclude

GAIL is one of the top companies responsible for natural gas processing and distribution in India. It has expertise in various segments, also it is facing tough competition from other companies. We have also seen that GAIL is committed to pursuing operational excellence in everything it does, focusing on continuous efforts to improve the environmental performance of itself and its customers, and will remain sensitive to environmental needs in all actions.

For this, GAIL should think about growing its marketing campaigns and environmental awareness on social media using digital marketing strategies

Because the importance of digital marketing 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 GAIL 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 GAIL, 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 GAIL in the comments section below.

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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]

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