ARAMCO

Aramco

-Saudi Aramco is a company that’s works in the energy sector , the company believes in the power of energy to transform lives, enhance communities, advance human progress, and sustain our planet.

-It is the biggest oil-producing company in the world , estimated with 270 billion barrels in its reserves.

Aramco

- Saudi Aramco was founded in 1933 when a Concession Agreement was signed between Saudi Arabia and the Standard Oil Company of California (SOCAL).A subsidiary company, the California Arabian Standard Oil Company (CASOC), was created to manage the agreement. In 1938, various other companies of the United States have joined it after the discovery of oil in Dhahran.

BUSINESS STRATEGY

• As the global population grows, economies expand, and standards of living increase, energy will continue to be an essential enabler of opportunity. Saudi Aramco is executing a wide-ranging strategy to ensure that we are at the forefront of providing the needed energy — today and tomorrow. Guided positively by the Strategic Intent and determination, SA’s business strategy will not only do welfare for millions of people it serves but it will also enhance the job enrichment of each and every employee who works or are somehow connected to this company.

CHALLENGES

• Art of selection of target market and keeping and growing customer through communicating, creating and delivering superior customer value.
• The company resources can be e used by effective marketing management .
• The company resources can be enhanced by customer opinion, customer base, service, and product of the company.

CHALLENGES CONT..

• Saudi Aramco has a view that the biggest Hallmark of their commitment to the customer is there professional marketing.
• one of the plans of the company is that till the end of 2020 this company would become one of the leading integrated energy and chemical companies

Opportunities

1. The company is represented in three main energy markets of North America, Asia, and Europe.

2. The company is the vibrant energy market in subsidiaries like South Korea, Philippines, Taiwan, Japan, china, and India.

3. The company is the vibrant energy market in subsidiaries like South Korea, Philippines, Taiwan, Japan, china, and India finance support, administrative support, and technical support.

STRENGTHS

• Spending on alternative energy ، Investment in high profile project ،
• The brand image they have created sustaining over 80 years
• Management who are highly skilled and to operate the company

WEAKNESS

• Declining profit over the years.
• Aramco is declining replacement rates in recent years.
• Future profitability.
• Aramco lacks the ability to compete with existing competitors which in turn declining its sales of refined products, resulting in lowering top line growth

OPPORTUNITY

• Bio-fuels and alternative energy methods.
• New markets for oil and gas in various cities.
• Growing demand of crude oil day by day.

THREATS

• Increase in labor costs
• Attacks
• Global economy
• Environmental Regulation that can be a threat of oil mining

• The petroleum market is very much competitive although Saudi Aramco holds the major market share. But the growth rates of the competitors and expansions of company's product to rural continent are great challenges for Saudi Aramco. The world's need for energy is growing, but the company's ability to meet that demand is associated with strategic direction is with the needs and aspirations of the Kingdom of Saudi Arabia, and is summarized in the company's Corporate Strategic Direction, to deliver maximum financial contribution to the enterprise and to promote development of the local economy of the Kingdom of Saudi Arabia