S.W.O.

T Analysis 201
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A situation (SWOT) analysis is critical to the creation of any strategic plan.
The SWOT analysis begins with a scan of the external environment.
Organization must examine their situation in order to seek opportunities and
monitor threats. Sources on information include customers (internal or
external), supplier, government (local, state, international) professional or
trade association (convention and exhibition), journal and reports (scientific,
professional and trade).

SWOT is the assumption and facts on which a plan will be based. Analyzed
strengths and weaknesses comprise the internal assessment of the
organization. Assess the strengths of the organization. What makes the
organization distinctive? How efficient is our manufacturing? How skilled is
our workforce? What is our market share? What financing is available? Do
we have a superior reputation? Assess the weakness of the organization.
What are te vulnerable areas of the organization that could be explored/ Are
our facilities outdated? Is research and development adequate? Are our
technologies obsolete? What does the competition do well?

Analyzing opportunities and threats comprises the external assessment of

the environment. Identify opportunities. In which area is the competition not
meeting customer needs? What are the possible new markets? What is the
strength of the economy? What is the strength of the economy? Are our
rivals weak? Identify threats. In which area does the competition meet
customer needs more effectively? Are there new competitors? Is there a
shortage of resources? Are market tastes changing? What are the new
regulations? What substitute products exist? The best strategy is one that
fits the organization’s strengths to opportunities in the environment.

The SWOT analysis is used as a baseline for the future improvement, as well
as gap analysis. Comprising the organization to external benchmarks (the
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best practices) is used to assess current capabilities. Benchmarking
systematically compares measures such as efficiency or outcome of an
organization against similar measure from other internal or external
organization. This analysis helps uncover best practices that can bee
adopted for improvement. (See camp, R. C> Benchmarking: The search for
industry best practices that lead to superior performance. Norcross, GA:
Industrial engineering and management press 1993) Benchmaking with
other organization can help identify a gap. Gap analysis identifies the
progress required to move the organization can help identify a current
capabilities to its desired future state. In this way, the organization can
adapt the best practices to improve organizational performance.

STRENGTH:
 Market Share of 70% is one the main strength of PSO.
 Company reputation in the industrial sectors adds the strengths
for PSO.
 Product quality is also strength especially in industrial sector.
 Service quality like plastic cards and non-fuel activities adds the
value.
 Distribution & Fleet network, which covers 81% country retail
network, is the key edge on PSO its competitors.
 Promotional activities add value in brand awareness and
attraction of new customers.
 Innovation like Auto Car Wash helps PSO to differentiate with its
main competitors.
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 Storage capacity, which holds 80% of total storage capacity of
the country, is also key advantage over its competitors.
 Technical skills in Fleet management are strength for PSO.
 Visionary, capable leadership adds value to PSO strength like
their NVRO operations.
 Financial Stability with strong reserves, paid-up capital adds the
trust of stakeholders.
 Product line width adds long range of products for more revenue
opportunities.
 Castrol brand affiliation with PSO adds strength in terms of brand
awareness.
 Relations with Government one of the key strength of PSO in
order to get legal protections.

WEAKNESS:
 Lost & Dissatisfied customers are major weakness of PSO as they
are causing the perception of inefficient PSO.
 Old retail outlets are major weakness for PSO as they are not
enough capable to compete the Shell, Caltex or Total outlets.
 Untrained staff at outlets is causing inefficient services.
 Quality assurance is not so effective to build the image of
“Quality & Quantity”.

OPPORTUNITIES:
 Afghanistan’s Market is the biggest opportunity for OMCs in
Pakistan.
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 De-regularities of Oil industry in Pakistan add the opportunity to
fill the deficiency in few sectors of petrochemicals markets.
 Export Opportunities of Black Oil Products is also adding the
 opportunities by exporting Black Oil products, which is facing
downfall due to the introduction Gas Oil.
 Industrial & Trade growth in Pakistan is also the opportunity for
PSO as they are adding revenues in Power sector that is the
major customer of PSO.

THREADS:
 Risk of forward integration of Supplier is the key threat for PSO
and other OMCs in Pakistan. As the example, the PARCO who is
one of the main POL product suppliers to OMCs adopt the forward
integration strategy by introducing its own OMC with its new
business alliance TOTAL and named its OMC as TOTAL- PARCO.
 Risk of Diversification in technology is also a key threat for PSO
as due to new technology used in industrial sector is causing
decline in particular POL products.
 Substitutes in Black Oil Market are causing a solid reason for the
declining trend in Black Oil Products, which is major threat for
PSO.