SWOT ANALYSIS

PETRONAS DAGANGAN BERHAD (PDB)

Azila Nur Binti Amin Asain Nor Linda Binti Mokhtar Akmazulaila Binti Ibrahim Azian Binti Wahab 66447 68276 68282 68289

Strengths
1.
 

Consistent Strong Performances

Profit increase from RM 210.7 million in 2005 to RM726.2 million in 2006. Educated, well experiences and good back ground workers.

2.


Diverse Range of Businesses

The company operates a diverse range of businesses that include Crude Oil Products, Crude Oil Assays, Petroleum Products, Petrochemical Products, Shipping and Maritime Services and etc.

Strengths
3. Reorganized


Operation

With the escalating challenges and demands faced by the business, greater emphasis has been placed on maintaining PDB high performance environment by developing and retaining the right talent to steer the Company to greater heights.

Weaknesses
1.


PDB owned by the Government

Usually government is an external factors but in this case, the government included an internal factors because the government one of the controller in this company.

 PDB under Petronas and whatever money the company made could be tapped by the government if it so wished.  So, it is difficult if PDB management want to create something new with their profitability because they need to get permission by the government first.

Weaknesses


Every year they are sentence amount of profit will be taken by the government for sponsorships. For examples: community program Petronas Dekat Di Hati, Newspaper events like Merdeka Bersama Pelanggan and Mega Project Putrajaya.

Opportunities
1.


Penetration Market
Stability in Malaysian economic and political reasons after economy collapsed 1997 was intended others countries to reenergize the bilateral relationship. This will translate into commercial opportunities and could create value of both countries. Example: South Africa (The largest investor is Sasol Polymer in partnership with PDB) Investors from others countries have recognized the investment potential of Malaysian as a rapidly emerging market with strong resources and a growing consumer base.

  

Opportunities
2.


Attractiveness and Loyalty of Customers

PDB had introduce Mesra Card to roll out its loyalty programmed to retain and increase the number of customers. PDB had realize that it is important for them to build long-lasting customer relationships and to distinguish from competitors programmed beside to satisfy buyer needs and wants. Mesra Card used points system in every petrol purchasing to give reward and customers will get more benefits by using it.

Opportunities
3. Adopts


New Technologies

PDB has adopted Aspen Techs solution for fuels marketing to optimize the distribution of fuels and specialty liquid petroleum products. The solution is expected to reduce the companys distribution costs and to deliver improved service to its customers. By standardizing on Aspen Techs solution for fuel marketing, PDB has begun to create an operational backbone for its downstream operations that will enhance the value of its ERP systems and support its goals for operational excellence.

Opportunities


The desire and commitment shown by PDB to adopt technology and business best practices has clearly positioned them as a current and future leader in the Asia-Pacific Market.

Threats
1.


Sharing Market With Competitors

Petronas controls just 27 % of the local retail petroleum market, with therest shared by Shell, Esso, Caltex, Mobil and etc. The market shares of different companies are shown in below table.
Petronas Shell Exxon Mobil Caltex Others 27% 32% 17% 6% 18%

Threats
2.


Existence New Innovation

New alternative exist because with highly technology such as nuclear power,solar, etc

3.


Policy and Regulation

PDB needs to follow the policy and regulation that being fixed by government to manage all activities. The complicated policy and regulation makes difficulty for PDB to operates businesses.