SWOT Analysis of Gazprom

Gazprom, Open Joint Stock Company is one of the major mining of natural resources and leading companies of the world. It is headquartered in the area of Cheryomushki, Moscow and South-Western Administrative Okrug. This company’s name came out of Russian Gazovaya Promyshlennost, meaning “Gas Industry”. Gazprom was formed in 1989 when Agency of Gas Industry of the Soviet Union changed itself into a business keeping all its property together. At this time most of the company’s matters are under the embrace of the Russian Government. In 2011, Gazprom created 513.2 billion cubic meters of natural gas, which is the 17% of the gas production around the world. Adding up, it produced 12.1 million tons of gas condensate and 32.3 million tons of crude oil.

Strengths

• The expanding in their income resources is their strength and it is the only reason of their strong position in the financial market.

• They have major operating margins due to which their customer base is very strong. And due to which their products are admired around the globe.

• They step into the global market when there was no such industry that can give valuable products.

• After their first success they have now entered into the, market and have a strong position.

• They are the first company to provide information about their products through mail.

Weaknesses

• Due to the Russian Government control on their assets, they cannot solve any matter on their own.

• Increasing debt has caused many problems for them. Due to less economy they are not able to produce the required amount.

• They have fewer resources due to which are they making an insufficient quantity of products due to which their clients are not happy. 

• The clients have confirmed that they are using low quality products which cost same as the original products.

• They are facing problem in providing well liked quality products when it is needed in a rush.

Opportunities

• An unending construction of pipeline will help them in finding new resources.

• The rapid growth in Europe is demanding for more resources and it is a golden chance for them in increasing their growth in the industrial sector.

• They will grow internationally as well if they spread the pipeline scheme in other countries.

• Gazprom is able to start of this option if it is successful in competently providing streaming pleased to a client on a point in time practice base relatively than a per-screening basis.

Threats

• If Gazprom were to drop its ordinary, responsible image, it might not know how to keep enough of the market to prolong to exist.

• Gazprom is less right to oppose with other Oil & Gas company for the cause that it has insignificant information in this district, although such development can finally be corresponding somewhat than aggressive.

• They may face some technical problems in their industry and this thing may delay their work. And if it happens they will not be able to provide the required quantity.

References

Gazprom, (2012), Company History, Official company Webpage: http://www.gazprom-mt.com/Pages/default.aspx Retrieved: 21th Nov, 2012

Yahoo Finance, (2012), Gazprom. Company overview: http://finance.yahoo.com/q?s=OGZPY.PK  Retrieved: 21th Nov, 2012

Gazprom Energy, (2012). http://www.gazprom-energy.com/uk  Retrieved: 21th Nov, 2012

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