SWOT Analysis of ONGC
Today, we will discuss the SWOT analysis of ONGC (Oil and Natural Gas Corporation) along with its services and competitors. ONGC is a famous energy firm and India’s largest crude oil producer. Currently, it is producing over 70 percent of India’s crude oil. In 2010, the Government of India gave Maharatna status to ONGC. When it comes to marketing strategy, the company has an effective strategy. Also, they utilize every marketing platform to promote the brand.
About ONGC (Oil and Natural Gas Corporation)
Oil and Natural Gas Corporation is one of India’s largest crude oil producers, headquartered in New Delhi. The Government of India controls it. This international organization was founded in 1945. It is responsible for producing almost 60 percent of natural gas and 70 percent crude oil. Indeed, it has helped the country to achieve its energy goals. Moreover, they are investing in research and development programs to find unique ways of producing oil and gas.
Company Name: Oil and Natural Gas Corporation (ONGC)
Owner: Government of India
Founded: Aug 14, 1956
Headquarters: Vasant Kunj, New Delhi, India
CEO: Subhash Kumar (Apr 01, 2021-)
Type: Government Corporation
Sector: Energy and Power
Tagline: Making Tomorrow Better; Nibhaye Zimmedari Bharose Se
Unique Selling Proposition: India’s largest gas and oil exploration organization.
Customers: Corporates, countries, and individuals looking to meet energy needs.
Target Consumers: Enterprises and individuals looking for energy for production.
Revenue: 67,890.90 Crore INR (2021)
Net Income: 112 Billion INR (2021)
Products by ONGC | SWOT analysis of ONGC
As we mentioned above, ONGC is one of the top energy companies in India and offers plenty of products. Accordingly, they are fulfilling the energy demands of the country.
- Liquefied Natural Gas (LNG)
- Natural Gas
The oil and gas sector is pretty much crowded with heavyweights in India. But, ONGC has retained its position even in the competitive market. Here are some competitors of the company, You can read PESTLE ANALYSIS OF ONGC.
- Reliance Industries
- Bharat Petroleum
- Oil India
- Gujarat Natural Resources
SWOT Analysis of ONGC
Strengths of ONGC:
Indeed, in the Indian energy market, ONGC is one of the most reputable organizations with higher profit margins and revenues. It has employed more than 30000 employees so far.
According to ONGC, they fulfill 30 percent of India’s crude oil demands. However, it is responsible for India’s 60 percent gas and 70 percent crude oil production. So, it is an important energy company for the country.
Business Model and Effective Marketing:
When it comes to marketing and business model, they have probably the best strategy. Such strategies are contributing a big role in its success. They always come up with new marketing strategies to attract users. As a result, the company’s brand value has increased in the eyes of customers.
Strong Player in the Market:
In the natural gas industry, ONGC is a big player. It produces a great amount of natural gas every year. On the other hand, the company has strong branding and advertising system. Plus, it has grabbed many awards and statuses from the government and private companies.
The company has an extensive pipeline network that helped them achieve organic growth. They transfer gas more seamlessly with a vast network.
The parent organization of ONGC is the Government of India. So, it has strong financial backing. It is one of the biggest strengths of the company.
Weaknesses of ONGC | SWOT analysis of ONGC
As Oil and Natural Gas Corporation is a government-owned company, it depends on bureaucratic decisions. They take slow decisions that impact the business performance of the company. It also slows the efficiency of the company.
Depleting Market Share:
Due to intense competition, the company’s market share is decreased. Its profitability and revenue is decreasing day by day.
They invest a hefty amount of money in research and development but this is not enough when it comes to competitors. That’s why they are not achieving the success they deserve.
Financial and Tech Resources:
The company does not have technological and financial resources. Due to this reason, they are experiencing slow growth.
Opportunities for ONGC | SWOT analysis of ONGC
- Rising Oil Industry:
In the international market, oil prices are increasing, meaning they can earn more profits. More oil discoveries will open plenty of growth opportunities for the company.
- International Expansion:
The company has the potential to run its business in neighboring countries. It will give the company international exposure and also increases its profits.
- Lower Inflation Rate:
Decreasing the inflation rate is another sign of opportunity for the company. It gives the company much-needed stability, and it can increase its revenue stream.
- Advancement of Technology:
By exploiting the latest technologies, the company can produce oil and gas in a more efficient way. It will allow them to readjust their pricing strategy. So, they can boost their customer base through technology.
- Weak Position of Competitors:
After covid-19, many oil companies are facing a crisis. ONGC can take advantage of this thing by targeting customers. They can offer more affordable services to take the competitive edge in the market.
Threats to ONGC | SWOT analysis of ONGC
- Increasing Crude Oil Cost:
The fluctuating crude oil prices can create a big dent in the revenue and net income of the company. Moreover, it is a big sign of threat for the corporation.
- Liability Laws:
In different countries, liability laws differ and it may create trouble for the company. They can face lawsuits and legal proceedings in case of any violation.
- Domestic Distributors:
The Indian oil market is very stiff due to the presence of local distributors. They pose a threat in some segments for the company. They are continuously eating the market share of ONGC.
- Risk of Drilling:
Obtaining natural gas and oil requires some powerful drilling which possesses some big risks. Such risks can slow the business operation of the company.
- Hard Competition:
ONGC faces tough competition from competitors like Adani Group, Reliance Industries, Bharat Petroleum, etc. These companies are one of the biggest threats for the company. They can disturb the domestic as well as international expansion of the company.
Conclusion | SWOT analysis of ONGC
There is no doubt that ONGC is the most popular company responsible for energy and natural gas distribution. It has a robust business model and due to this, it is going strong in the competitive market. It is still a market leader even in the presence of heavyweights. They are bringing operational excellence to their business by keeping environmental factors in mind.
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