SWOT Analysis: Strengths

One of the most significant strengths of Goodyear Pipeline is its strong brand identity which
effectively differentiates the company from all other tire manufacturers and pipeline. Its products have
strong brand recognition and enabled the company to charge a premium compared to its competitors in
the economy.

A brand leveraging strategy which uses the power of an existing brand name to support a
company’s entry into a new but related product category communicates valuable product information
to the consumer. Goodyear Pipeline extensive product offerings have helped the company to penetrate
different customer segments in the industry. It has also helped the company to diversify revenue
streams.

SWOT Analysis: Weaknesses

Goodyear Pipeline’s business model can be easily imitated by the competitors in the industry. To
overcome these challenges, Goodyear needs to build a platform model that can integrate suppliers,
vendors, and end users.

Safety concerns and appropriate management can also be linked to environmental incidents
that can happen throughout its operation. Pipelines carrying hazardous liquids may cause incidents that
can result to environmental damage and pose health risks.

SWOT Analysis: Opportunities

As the US economy is improving faster than any other developed economy, it will provide
Goodyear Pipeline an opportunity to extend into the US market. Goodyear Pipeline already has the
know-how to operate into the competitive market. The global oil market is expected to grow as the
economy fully recovers. Goodyear will most likely be able to capitalize on this trend.

Tying up with local players can also provide opportunities for growth for the Goodyear Pipeline
in international markets. The local players have local expertise while Goodyear Pipeline can bring global
processes and execution expertise in the table.

Production of oil from the California OCS was expected to increase substantially in the late
1980s, when recent large discoveries were projected to come into production. Successes in discovery
and proving of reserves which were likely to continue will keep the AAP operating at full capacity for
decades.

SWOT Analysis: Threats

Rapid technological innovation on oil reserves would cause a decline in production. Catching up
with product development is a challenge from international and local competitors. The company is also
exposed to the new regulatory requirements and had to obtain many other state, local, and regional
permits. These permits would require considerable expenses and hurt profitability.