value chain , potters 5 force model and swot analysis

2. Type Public (BSE: 532743)
Industry Petroleum and Gas
Founded 2008
Headquarters Ahmedabad, India
Key people Mukesh Ambani
Products Petroleum
Revenue 3,678.00 crore (US$ 665.72 million)
Parent Reliance Industries

4. Location of TYPE OF FACTOR
Factor
Favorable Unfavorable
Internal Strengths Weaknesses
Leading market position Increasing long term debt
Operational efficiency in Problem with the FCCU
refining
Strong financial performance
External Opportunities Threats
Joint venture with NOVA Intense domestic competition
Chemicals Rising petrochemical supply in the
Acquisition of polyester Middle East
assets of Hualon Corporation Fluctuating crude oil prices
Increasing demand for Economic slowdown in India
transportation fuels
Growing demand for petroleum
products

5. PORTER'S 5 FORCES ANALYSIS

6. 1. Threat of New Entrants
2. Power of Suppliers
3. Power of Buyers
4. Availability of Substitutes
5. Competitive Rivalry

7. 1. THREAT OF NEW ENTRANTS
 There is thousands of oil and oil services
companies throughout the world, but the barriers to
enter this industry are enough to scare away all but
the serious companies. Barriers can vary
depending on the area of the market in which the
company is situated
 Need Ample cash
 Need specialized worker

8. 2. P OWER OF S UPPLIERS
 While there are plenty of oil companies in the
world, much of the oil and gas business is
dominated by a small handful of powerful
companies.

9. 3. POWER OF BUYERS.
 The balance of power is shifting toward
buyers. Oil is a commodity and one
company's oil or oil drilling services are
not that much different from another's.
This leads buyers to seek lower prices and
better contract terms

10. 4. AVAILABILITY OF SUBSTITUTES
 Substitutesfor the oil industry in general
include alternative fuels such as coal, gas,
solar power, wind power, hydroelectricity
and even nuclear energy.

11. 5. COMPETITIVE RIVALRY
 Slow industry growth rates and high exit barriers
are a particularly troublesome situation facing by
firms.
 At the same time, exit barriers in the refinery
business are quite high.
 Besides the scrap value of the equipment, a
refinery that does not operate has no value-adding
capability.

12. VALUE CHAIN ANALYSIS

13. Oil and Gas Value
Chain

14. OIL AND GAS VALUE CHAINS
Crude Oil Value Chain
Exploration Production
Bringing oil to the surface
Using technology to using natural and artificial
find new oil resources methods
Refining
Transportation
Converting Moving oil to refineries and
crude oil into finished consumers with
products tankers, trucks
and pipelines
Marketing
Distributing and selling
refined products

15. Natural Gas Value Chain
Exploration Production
Using technology to Bringing gas to the surface
find new oil resources
Transportation Processing
Moving gas with Treating gas to be sent to
pipelines and tankers markets
Marketing
Distributing and selling
natural gas