In our previous blog, we did a comparative SWOT Analysis of one of the world’s major oil and gas companies, British Petroleum. Here we will be doing the Updated SWOT Analysis of Saudi Aramco.
Saudi Aramco is the world’s largest oil and gas company by market capitalization. It is also the world’s largest crude oil producer.
Saudi Aramco has grown at a large scale in its industry. It can still capture more markets if it implements pepper marketing strategies. As most people are shifting towards online media it is easy for every business to target their potential customers in the market. Using digital marketing is one of the most essential components for the growth of a business in this era. If you would like to learn what digital marketing is and how to use it to your advantage – check out our Free Master Class on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Thus this makes us captivated in knowing how Saudi Aramco is able to gain such huge success in its industry. To understand that we have given an updated SWOT Analysis of Saudi Aramco. But before we start with its SWOT Analysis let us learn about Saudi Aramco as a Company, its products, competitors, financials, and more.
About Saudi Aramco
Saudi Aramco which is also known as Saudi Arabian Oil Company is a leading Saudi Arabian oil company that is state-owned by a global petroleum-energy-based enterprise. It was established in the year 1933. It has its headquarters located in Dhahran, Saudi Arabia.
Saudi Aramco’s goal is to remain a world leader in the industry, which according to Saudi Arabian Oil Co. is the manufacturer of the petroleum build energy industry. To ensure that this vision is accessible, the corporation ensures that it also remains committed to solving issues arising in its industry.
This belief is that Saudi Arabian Oil Co. is reflected in numerous ways in the real world for investments in innovation (research and development) and entrepreneurship. Saudi Aramco is also a creator of educational opportunities, economic progress, an increase of environmental awareness, and a pursuant to energy sustainability.
Saudi Aramco has a market capitalization of about $2.081 Trillion as of AUGUST 2023 and makes revenue of about $588.88 billion currently. It has earned a profit of about 161 Billion as of 2022.
|No. of Employees||66,800 (2020)|
|Company Type||State-owned enterprise|
|Market Cap||$2.081 Trillion|
|Annual Revenue||$588.88 Billion|
|Net profit||$161 Billion|
Products of Saudi Aramco
Saudi Aramco has grown exponentially in its market and has to provide its customers with different products. Following are some of the products of Saudi Aramco:
- Natural gas
- Petrochemical derivatives
What’s new with Saudi Aramco
Check out some current news about Saudi Aramco:
- Accenture won a mega digital consulting contract with Saudi Aramco.
- Saudi Aramco takes a $3.4bn stake in China’s Rongsheng Petrochemical Company.
- Aspen Technology and Saudi Aramco Partner to Bring New Carbon Capture & Utilization Software Innovation to Market.
Before we move ahead with the SWOT Analysis of Saudi Aramco. Let us first understand their target customers.
Target Audience of Saudi Aramco
Over 70% of Aramco’s exports go to Asia, which is where it finds the majority of its consumers. China, India, Japan, South Korea, and the Philippines are the six largest markets on the continent, and the corporation is the largest supplier to each of them.
Have a look at the buyer persona:
- Reliable energy solutions.
- Sustainable, efficient practices.
- Stable, cost-effective sources.
- Business decisions aligned with energy trends.
- Energy sector advancements.
Interest & Hobbies
- Technology or data science (possibly).
- Industry conferences, workshops.
- Cultural, outdoor activities.
- Occasional leisure travel.
- Work-life balance.
- Sustainable, efficient energy.
- Managing energy costs.
- Rapid energy industry changes.
Social Media Presence
Now that we have known about the company let us start with the SWOT Analysis of Aramco.
SWOT Analysis of Saudi Aramco
SWOT Analysis of one of the best methods that Saudi Aramco can use to find out its internal Strengths and Weaknesses and external Opportunities and Threats. SWOT Analysis of Saudi Aramco helps to find out where it stands in the market by giving it an overview of its business.
Let us now start with its SWOT Analysis of Saudi Aramco by first looking at the Strengths of Saudi Aramco.
Strengths of Saudi Aramco
Strengths are the most important factor that helps Saudi Aramco to maintain its position in the market. Following are some of the strengths of Saudi Aramco:
Large Production and Refining Capacity – Saudi Aramco has a large capacity for production and refining its materials. This helps the company to serve a large audience in the market with its products.
Advancement in Technology – Saudi Aramco uses the latest technology in the production and management of its products. This helps it to be efficient in its process and in return get more production.
Low Price – The cost per production of a barrel of Aramco is one of the lowest in the market all over the world. Thus this helps it to enjoy the advantages of a low-cost environment.
Weaknesses of Saudi Aramco
Weaknesses are the factors that act as a flaw in the growth of Saudi Aramco. It needs to find these flaws in its company and try to fix them as soon as possible. Following are some of the weaknesses of Saudi Aramco:
High dependability on only one product – Saudi Aramco is more dependent on the profitability of only one of its products which is crude oil. If this goes on the company may face trouble in the future if any changes occur in the profitability of that product.
Corporate Governance and Transparency – Saudi Aramco faces a large disadvantage due to corporate governance and transparency.
Opportunities for Saudi Aramco
Opportunities are the factors that help Saudi Aramco grow exponentially in its industry. The company needs to find such opportunities that can be helpful to it and make them their strengths. Following are some of the opportunities for Saudi Aramco:
- Renewable Energy Transition: As the world moves towards cleaner energy sources, Saudi Aramco has the opportunity to invest in renewable energy technologies and diversify its energy portfolio.
- Expansion of Downstream Operations: The company can leverage its refining and petrochemical capabilities to expand its downstream operations and capture additional value from its oil reserves.
- Global Energy Demand: Despite increasing efforts towards sustainability, global energy demand is expected to grow, providing ongoing opportunities for Saudi Aramco to meet market needs.
Threats to Saudi Aramco
Threats are the external factors of Saudi Aramco that affect the growth of the company in a negative way. It needs to be aware of such events in the future and be prepared with proper precautionary measures. Following are some of the threats to Saudi Aramco:
- Exploration of new products – The global market share of Saudi Aramco can decrease if other countries are successful in the exploration of new products. This will result in a threat to Saudi Aramco.
- Eco-friendly fule – 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.
Before we conclude with this blog on the SWOT Analysis of Saudi Aramco. Let us know about their competitors.
Competitors of Saudi Aramco
- ExxonMobil: One of the largest publicly traded energy companies, ExxonMobil operates across various segments of the oil and gas industry, including exploration, production, refining, and marketing.
- Royal Dutch Shell: Shell is another major integrated energy company that is involved in various aspects of the energy sector, including oil and gas exploration, production, refining, and distribution.
- Chevron: Chevron is a multinational energy corporation engaged in various aspects of the energy industry, including exploration, production, refining, and marketing of oil and gas products.
- BP (British Petroleum): BP is a global energy company involved in oil and gas exploration, production, refining, and marketing. They have a significant presence in various regions around the world.
- TotalEnergies: Formerly known as Total S.A., TotalEnergies is a French multinational energy company engaged in various energy-related activities, including oil and gas exploration, production, refining, and distribution.
With this, we come to the end of the SWOT Analysis of Saudi Aramco. This analysis helps the company to grow in the market by analyzing its position in the market and giving a wide idea.
On the study of the SWOT Analysis of Saudi Aramco, we know that it is the World’s Largest Oil and Gas Company. It has a Large Production and Refining capacity in the market and it also uses advanced technologies in its production process. The global economic growth and Saudi Aramco’s IPC can bring an opportunity for the company to grow. Even with such advantages it still has some flaws which need to be fixed.
It has high dependability on only one product and the exploration of new products in other countries can create a disadvantage for Saudi Aramco. However, it can increase its brand awareness in the market with the help of advanced digital marketing techniques which will help the company to increase its brand value of the product.
Digital marketing is essential for every business nowadays as most people are using social media and it is easy to find their target audience. If you are keen on learning and upskilling, check out IIDE’s 3-Month Advanced Online Digital Marketing Course to know more.
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