SWOT Analysis – Chevron Corporation | College Homework Help Experts

Chevron corporation is an American transnational energy company which was founded in 1879 as Pacific Coast Oil Company. In 1984, it was renamed as Chevron Corporation. It is situated within the California region. Its international operations manufacture oil and its equivalents, purifies them and trades them through gas stations and industrial channels. The company is interesting because it handles a commodity that is in huge demand yet it manages to meet the requirements. Moreover, it is recognized as the second leading manufacture of oil in the USA, after Exxon Mobil.

Strengths

• A strength of the company is its extensive geographic presence. The company’s major stations encompass Congo, Brazil, Norway, Canada and South Africa. Its extensive market has enabled it to access abroad clientele. I base this assessment on (Tang, 2018).
• A strength of the company is its complete integration. The company contains a complete value chain process that includes production, purification and trading of products. This has enabled it to be self-sufficient and achieve the necessary clients’ demands. I base this assessment on (Tang, 2018).
• A strength of the company is producing portfolio. The company manufactures various products including lubricants, base oils, process oils, additives and chemicals. I base this assessment on Hoovers database.

Weakness

• A weakness of the company is the legal concerns. Recently, the corporation has been involved in several legal proceedings. It has received fines from bodies such as the Occupational Safety & Health Administration of the US and US Environmental Protection Agency (EPA). Consequently, its repute has been tarnish I base this assessment on (Yeager & Smith, 2017).

Opportunities

• An opportunity in the external company’s environment is increasing demand. It is anticipated that the demand for natural gas will increase. This implies a great opportunity for the company as it is already making preparations for tapping this resource.
• An opportunity in the company’s external environment is the renewable energy market. Numerous corporations are anticipating this venture. In fact, Chevron Company has begun operating a renewable facility in California. I base this assessment on Hoovers database.
• An opportunity in the external company’s environment is the growing market in Asia. The current Asian market is expanding rapidly. There is greater oil demand within this region as more countries including China are demanding for oil.

Threats

• A threat for the company’s external environment is the regulations imposed. Liability regulations in diverse nations may differ and in turn predispose the company to the possibility of liability claims. Further, the government and environmental regulations have become more stringent making it difficult for the corporation to undertake its operations. I base this assessment on (Yeager & Smith, 2017).
• A threat of the company’s external environment is the financial crisis. The current depreciating oil prices in the global market have led to the reduction of oil imports in multiple nations. This has interfered with the corporation’s development. The persistence of this financial instability is likely to disrupt the company’s economic progression. I base this assessment on, https://www.marketing91.com/swot-analysis-chevron/.
• A threat of the company’s external environment is natural crises. Natural disasters can damage company facilities including the oil rigs and pipelines. The possibility of these damages can render company losses and impede further company progress. I base this assessment on (Yeager & Smith, 2017).

Conclusion

• Chevron company can take advantage by instituting more renewable facilities so as to ensure the sustenance of the company as well as supplement its revenue sources.
• Chevron company can take advantage by advertising extensively to broaden its market further.