SWOT Analysis of BPCL – BPCL SWOT Analysis [Detailed]

SWOT Analysis of BPCL focuses on Strengths, weaknesses, opportunities, and threats. Strength and Weakness are the internal factors and Opportunities and Threats are the external factors that influence the SWOT Analysis of BPCL.

BPCL is an Indian refining firm. It’s one of the largest companies in the country.  BPCL focuses on the manufacturing, marketing, and distribution of petroleum products. Some of them are petrol, diesel, lubricants, natural gas, CNG, LPG, Aviation Fuel, Kerosene, and industrial kerosene. BPCL is one of the Fortune 500 companies. Two of the main operating refineries are situated in Kochi and Mumbai, Maharashtra. The headquarters of BPCL is located in Mumbai. It is considered one of India’s most trusted companies.

swot analysis of bpcl

Strengths in the SWOT Analysis of BPCL – BPCL SWOT Analysis

  • Recall: Almost everybody recognizes BPCL because of its powerful brand recall.  People will locate their fuel stations almost anywhere, and often people use their LPG cylinders. As a result, they have achieved great brand recall and a high level of confidence among consumers.
  • Social Acceptance: BPCL has a wide appeal because of its distribution channels. Its petrol and gas are available everywhere.  Thus they achieved good brand preference and strong social acceptance amongst the consumers.
  • Wide Network: BPCL has over 14,000 fuel stations and expanding its network to reach suburbs of the country.
  • Production Capacity: large refineries have been built up, giving them a considerable edge over their rivals. Its production capacity is also high as compared to its competitors. This raises the value and happiness of consumer order fulfillment.
  • Broad Product portfolio: BPCL has a broad product portfolio and continues to add to the list due to its R&D.
  • Research and Development: R&D is a very critical aspect of BPCL and is at the heart of their market. BPCL needs this to expand its product offering in order to maximize its sales and market share. BPCL continues to explore crude oil whether they can extract some other valuable items or improve the value of those already present. Few of their success include fuel oil, semi-synthetic 4T engine oil, hydraulic oils, etc.
  • Non-Traditional Sources: Apart from conventional sources, they recognize that it is necessary to expand its business through Bio-diesel, biofuel plantation, the establishment of bio-diesel installations, solar turbines, wind farms, etc. This reflects their solid foundation for the future.
  • Collaboration for Recruitment: Work with the brightest minds in the country for the R&D department. This gives them the edge over their competitors. BPCL recruits top brains from IITs, NITs, IISc, and Top Petroleum Colleges, etc.
  • Rural Reach: BPCL has a good rural reach and is developing its network.
  • Strong Financials: BPCL has a total revenue of US 40 Billion Dollars, Net Income of US 430 Billion Dollars. The government of India has a stake of 52.98% in BPCL. Employee’s strength in BPCL is about 12157 employees.
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Weaknesses in the SWOT Analysis of BPCL – BPCL SWOT Analysis

  • Rules of the Government: Activities of BPCL are bound by legislation. Thus they cannot work independently on their own and raise their earnings like a private company.
  • Employees: As a government entity, BPCLneeds more than enough employees to manage its activities. More employees mean more expenditure on salaries and extra benefits. This will create an additional burden on the corporation.
  • Environmental issues: refining causes a lot of contamination and waste that is poured into the environment. Some time due to contamination it will create environmental issues. And ruins the reputation of the company.
  • Operational locations: Activities of BPCL are restricted to India. BPCL can develop strategies to increase its presence in international markets.

Opportunities in the SWOT Analysis of BPCL – BPCL SWOT Analysis

  • Oil Well discovery: New oil well can be searched when the cost of petroleum goods may rise in the future. This is going to allow them more leverage.
  • Growing demand: Due to the increasing population demand for petrol, diesel, and cooking gas is increasing. This suggests that the demand is rising at a very high pace and that BPCL has the opportunity to tap this growing demand.
  • Joint Ventures and Acquisitions: BPCL can do joint ventures with other foreign companies and can also acquire companies to increase their reach and profits.
  • Global markets: They will increase their footprints in International Market. These markets can help the company to increase its profits.

Threats in the SWOT Analysis of BPCL – BPCL SWOT Analysis

  • Use of Electric Vehicles and Induction Cooktops: Use of Electric Vehicles and Induction cooktops can be a major threat to companies like BPCL.
  • Oil Price Fluctuations: Oil Prices are fluctuating this can led to decreased earnings.
  • Decrease of conventional energy use: the atmosphere is getting increasingly environmentally sustainable and conventional energy supplies are therefore rapidly depleting. People have taken this into consideration and have begun to migrate to non-conventional sources.
  • Intense Competition: BPCL is getting intense competition from HPCL, IOCL, and ONGC and some of the private companies like Reliance, Shell, and Essar.
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