To differentiate from competitors, it is important to ensure that Engen’s fuel quality is superior than that of its competitors. 1. It is important for both businesses to draw on this and continually market their products to both existing and potential customers. It is important to make employees feel valued to increase productivity and service quality. However, fuel stations have differentiated themselves through service and product quality as well as their forecourts. It is also important to continually research and improve the fuel being produced to be better for both the consumers car and the environment. Existing strategic alliances have also built high levels of customer loyalty with both the fuel station and the food retailer. After a successful 3 year trial period, it was decided that Woolworths and Engen would expand the concept. 2020 Mar 16 [cited 2020 Dec 24]. While the quality is often considered to be better, it is not always affordable and thus a large portion of the market is shut out. This essay has been submitted by a student. This could lead to the above risk of being replaced by another company. This can be done through the quality of products, the quality of service and CSR initiatives. In addition, potential opportunities and key threats in the short to medium term future are also identified. The industry have to follow the taxation policy, implement labor laws in industry, trade restrictions, political stability in the country, environmental laws and tariffs. Engen also exports its products to various other territories. Weaknesses in the SWOT Analysis of Shell : Violating corruption laws: In July 2007, Shell Oil was involved in violating corruption laws in the US in the case of using freight forwarding Panalpina and violating corruption rules from the Foreign Corrupt Practices Act (FCPA). Most consumers fill up their cars before or after a long trip or on the way from or to work. Woolworths currently differentiates itself from other forecourt stores through its product quality. The government provides the goods and services to this industry and helps it to flourish so that it can contribute in strong economy of the country. SWOT ANALYSIS OF COMPETITOR Ford Company. Thus, by offering exclusive saving opportunities, consumers are more likely to buy from the fuel station and forecourt. SWOT analysis maker features. MISSION. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Sasol Limited if … Gas Station SWOT Analysis . This simple tool can be used to assess a project, product, person, or place and test for viability and other factors. The energy company has presence in more than 20 countries in Sub-Saharan Africa and the Indian Ocean Islands with approximately 1500 service stations of which 600 have convenience stores. Engineering & Construction Services Company Report, Computers & Electronic Equipment Company Reports, Software & Technology Services Company Reports, Healthcare Equipment/Supplies Company Reports, Headquarter and operating division Address, Strengths, Weaknesses, Opportunities, Threats, Understand the company operations across the entire oil and gas value chain, Evaluate your company against this company in terms of risk, advantages and performance, Understand the key strategies being adopted by the company to increase their market shares, Identify strengths, weaknesses, opportunities and threats facing the organization, Respond to your competitors’ business structure, strategy and prospects through support sales activities by understanding your customers’ businesses, Capitalize on the analysis of experienced companies when entering a new niche or market, Gain insight into the methods used by key industry players which give them a competitive edge, Understand the company's financial status through our data on statements and ratios. A gas station SWOT analysis discusses the strengths, weaknesses, opportunities, and threats that are normally associated with these businesses. To do this, it is important to empower and grow employees in a manner that makes them feel valued. By extending the Wrewards programme to fuel stations, Woolworths has shown customers that they value their purchases at these Foodstops. Specifically in this market, there is large potential for growth which Engen and Woolworths could use to their advantage. These strategic alliances can be costly to form due to legal costs when drawing up the contract. We provide you with original essay samples, perfect formatting and styling. This will somewhat mitigate the risk of losing market share. In 2009, Engen and Woolworths partnered with Nampak to offer recycling facilities to their customers. SWOT Analysis: Theory SWOT is a strategic analytical tool for assessing strengths and weaknesses of a business, analyzing opportunities available to the business, as well as, threats faced by the business. This is not an example of the work written by professional essay writers. (Spring) 161–92. This section is available only in the 'Complete Report' on purchase. You can order Unique paper and our professionals Rewrite it for you. It is important for both Woolworths and Engen to understand the possibility of ending their strategic alliance at the end of the current contract term. It is in the best interest of both parties to have legal assistance when drawing up this contract to ensure the fair treatment of both parties as well as to provide a clear understanding of terms within the contract. The company believes in acting in a manner that is King Code Compliant and has embraced an ethical business culture to provide top quality petroleum products and convenience to their customers. The food retailer should also ensure good product and service quality and invest in CSR & CSI initiatives to increase market share as mentioned above for Engen. Inability to penetrate successfully in non-energy markets: British Petroleum has diverse interests in a number of related areas and this is mostly in the energy-related domains. This empowers employees which increases productivity and satisfaction but also mitigates the risk of mistakes and makes the consumers experience much more efficient. Examples of this include compulsory paid leave days, employee training, discounts in convenience store and for fuel among other initiatives. SWOT Analysis . Our product also includes a full business plan specific for a Gas Station. We’ve got you covered. Due to price regulations, all stations have to charge the same amount for fuel. Woolworths is a well-known food and clothing retailer in South Africa. This effectively limits the opportunity for strong strategic alliances that could be a threat. Caltex Oaklands currently hosts “pop-ups” on certain weekends. Woolworths however, is dependent on suppliers to deliver raw materials to factories. This will ensure the company the ability to operate in a productive and efficient manner. It is therefore important to ensure all Engen fuel stations provide excellent service and convenience to consumers. No doubt starting a gas station is indeed capital intensive especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank. It is the analysis of six major macro-environmental factors, namely political, economic, social, technological, legal and environmental factors (Oxford University Press, 2010). Porter's Five Forces: Gas Stations Andrew White, Steffan Simmons, Lexi Tenney Buyer Power Many buyers with little share Individual buyers purchase a small amount of total output Buyers are fragmented High importance to customers Rivalry for Existing Firms Threat of New Entrants There are currently 50 Woolworths Foodstops countrywide, of which 31 are in Gauteng. Through looking at the S trengths, W eaknesses, O pportunities, and T hreats of a company, it can be quite easy to gain an extensive outlook on their strategy, and how well it’s bound to work. Engen began as Vacuum Oil in the 1880’s and was renamed Mobil in South Africa in the 1960’s. As of 2020, Total is one of the leading brands in the energy & power sector. Knowing the strength and weakness of any business is one of the right steps to take in business. SWOT analyses are used in many business environments to gain … Woolworths Holdings Limited listed on the JSE in October 1997 and the share price at the close of the JSE on Friday the 5th of October 2018 was R47. However to ensure that the company does operate in a productive and efficient manner, it is important to empower employees and make them feel valued as mentioned before. The company invested in Canada’s oil sands in partnership with Houston-based ConocoPhillips. However, both Engen and Woolworths have are established in the market thus it is easier to maintain a loyal consumer base. By clicking “Send”, you agree to our Terms of service and Privacy statement. Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. Because the consumer would then have more choice while still having the convenience of being able to do more things at once, the fuel station is more likely to draw more consumers. Identification and/or creation of a competitive advantage and should set out the future strategy & financial development of the service over a specific period – ... Engen transformation policy – Women a priority . 2020 Mar 16 [cited 2020 Dec 28]. After the successful trial period, 3 stores were opened in Gauteng and by 2013, 50 stores were opened nationwide with 45 more expected to be opened by June 2016. Thus, the products in the convenience store serve as complimentary products due to the convenience of being able to fill up your car and buy food at the same time. By empowering employees, employees happiness also increases which reflects in the way they interact with consumers. Not only does this serve as an extra source of income, but it also creates a unique selling point and draws more consumers to the fuel station and forecourt. Most fuel stations have forecourts with convenience stores making it increasingly difficult to differentiate from competitors. Because of this, it is unlikely that new entrants would pose a large threat. Because it is very difficult to differentiate the fuel station itself, it is important to use the forecourt to gain a competitive advantage and grow a loyal consumer base. For that reason, while each party wants to remain in the strategic alliance, they should maintain a good relationship. Strength. If you fit this description, you can use our free essay samples to generate ideas, get inspired and figure out a title or outline for your paper. External Opportunities and Threats. -Ford have more consumer choice which is commercial vehicle and variety of cars for consumer. Woolworths and Engen have become related in the consumer’s mind and thus are when one acts in an irresponsible manner, both are affected. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Their underlying values that guide all operations mean that the company will always put the customer first, be inspirational, responsible & collaborative while committing to quality to be a responsible retailer and add quality to the lives of consumers. It is however suggested that Engen and Woolworths ensure consistent consumer satisfaction. Therefore, both companies should act in a responsible manner to maintain a good relationship thus mitigating the risk new entrants pose. GradesFixer.com uses cookies. You may have heard of a SWOT analysis, which serves as an analytical tool to assess your company's business strategy. Remember: This is just a sample from a fellow student. the SWOT acronym stands for Strengths, Weaknesses, Opportunities, Threats. In the event that a supplier is unable to deliver the correct quality and quantity of raw materials, Woolworths operations will be compromised. It consists of the following 6 forces: This force assesses the ease or difficulty with which a new competitor can enter the market based on entry barriers. PESTLE analysis is a framework that describes factors of external environment that affect an organization. Both Engen’s refinery and lubricating oils blending plant are located in Durban and produce 135 000 barrels and 320 000 litres of product per day respectively. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. SWOT Analysis is a proven management framework which enables a brand like BP to benchmark its business & performance as compared to the competitors and industry. Engen has both a refinery and a lubricating oils blending plant in Durban as well as its own fleet. If you don’t have a huge savings, you’re going to need investors or a business loan. Currently, the Woolworths Foodstop serves as a complementary product to the fuel. PESTEL analysis provides great detail about operating challenges Sasol Limited will face in prevalent macro environment other than competitive forces. Woolworths Foodstops have been present in Engen fuel stations since the early 2000’s and have grown substantially. Our Gas Station SWOT Analysis will provide you with the comprehensive documentation that you will need in order to determine the strengths, weaknesses, opportunities, and threats that your business will face as your develop or expand your business operations. Students who find writing to be a difficult task. This will mitigate the risk of being replaced by other fuel stations or retailers. Strengths . Woolworths opened its first 2 Foodstops at Engen in Cape Town in 2000 to test the viability of a forecourt model for the company. The most common approach to swot analysis is to simply brainstorm each list. 2020 © gradesfixer.com. As of 2020, BP is one of the leading brands in the energy & power sector. They were the first major retailers in the country to extend their loyalty programme to strategic alliance stores at fuel stations. Through their core values, Integrity, Ownership, Teamwork, Empowered and Performance, Engen aims to achieve while remaining a responsible corporate citizen. Available from: https://gradesfixer.com/free-essay-examples/analysis-of-strategic-alliance-between-engen-and-woolworths-petrol-station-franchises/, Recieve 100% plagiarism-Free paper just for 4.99$ on email, *Public papers are open and may contain not unique content. Weaknesses in the SWOT analysis of BP. A SWOT Analysis of a Petrol or Fuelling station. PDF) - US$ 200.00 | With more consumers becoming environmentally conscious, it is important for Woolworths and Engen to be as environmentally friendly as possible and ensure this is visible to the public. This SWOT analysis of NGO evaluate the strengths, weaknesses, opportunities and threats. This was done to learn more about consumer behaviour to improve their service delivery at these stores. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. As millions of people are associated with this business, s… This could be utilised to offer customers better deals and discounts at Foodstops to encourage them to continue shopping there. 2.0 PESTLE Analysis of Shell Group. this essay is not unique. This strategic alliance has been successful because it provides convenience to consumers. You might perform this analysis for a product, team, organization, leadership, or other entities. Want us to write one just for you? Financial Projection . An industry equilibrium analysis of downstream vertical integration. For this reason, it is important to carefully choose reliable suppliers and build a relationship with them to ensure a reliable supply of raw materials at all times as well as to avoid being overcharged. This will create a positive reputation for Engen and thus allow the company to build a loyal consumer base. This poses a risk to the quality and pricing of products as well as Woolworths’ ability to produce food. No doubt starting a gas station is indeed capital intensive especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank. Are you interested in getting a customized paper? Woolworths food can often be quite expensive compared to that of its competitors, SPAR and Pick ‘n Pay among others. October 2014 The industry of oil and petroleum needs labor to work with and they have to pay the taxes and other charges, which are levied over it. • Market analysis • Customer analysis • Promotions • Sales forecasting • SWOT analysis • Staff analysis • Financials • Key Success Factors • Main purpose : identification and/or creation of a competitive advantage and should set out the future strategy and financial development of the service over a … Divestments of oil sands assets in Canada due to concerns of climate change and profitability impact: Total had majorly banked on its oil sands project in early 2000’s as future growth drivers post 2010. It has operated successfully for many years. Pssst… This means that most consumers are either in a rush or tired. This acts as a barrier to entry for smaller retailers and fuel stations wanting to form strategic alliances. This can be achieved through ensuring technology is up to date as mentioned above as well as through ensuring employees are properly trained. Home — Essay Samples — World — South Africa — Analysis Of Strategic Alliance Between Engen And Woolworths Petrol Station Franchises. According to BusinessTech, the most popular petrol stations in 2017 were Sasol, Shell, Engen, BP, and Caltex. What this means is that a new entrant would have difficulty in building a customer base. Site Licence - US$ 300.00 The Applicability of Transformative, Fractured and Imposed Constitutionalism in Africa Essay, Factors Affecting Oil Prices In South Africa Essay, Case Study Of Injaka Bridge Collapse Essay, Analysis Of Colonial Curriculum At The North West University Essay, Evaluation Of The Importance Of Apartheid Essay, Effects of Poverty on African People’s Lives Essay, Influence Of Cultures On African Philanthropy Essay, The Water Crisis in Libya: Issues and Solutions Essay. Completing your SWOT analysis is only the first step. A SWOT analysis is a way to evaluate Strengths, Weaknesses, Opportunities and Threats. Having trouble finding the perfect essay? We will occasionally send you account related emails. In this portion of our analysis, we … Well known fast food brands would also already have a loyal consumer base. By extending this service to other fuel stations, Engen can build a stronger consumer base, specifically with parents, and thus also a future consumer base with their children. Locations and subsidiary information and company statement are included in the report. It is of utmost importance to hire employees that do not have criminal records and that are qualified (or can be trained) to do the job they are hired to do. This illustrates the breakdown of Woolworths Holding Limited and shows basic statistics around their operations and sales processes. This is because consumers often buy their fuel when they are going to work or on a journey and returning from either. Through growing existing CSR initiatives, Engen will be able to gain buy-in and thus loyalty from the community and grow the community around them thus fulfilling the people portion of King Code. As it relates the strengths, even in times of economic recession most gas stations are able to remain profitable and cash flow positive. Moreover, SWOT analysis template further below can be used to generate SWOT tables of top multinational companies along a range of industries. Notes & summaries for UNISA. This involves listing strengths, weaknesses, opportunities and threats.A swot analysis can be performed for any competitive situation. This would mitigate the risk because Woolworths would produce its own materials and thus would no longer be dependent on suppliers to operate. “Engen Petroleum Ltd Company Profile” is a comprehensive report from OGAnalysis on Engen Petroleum Ltd operations. This service allows parents to buy from the store without having to leave the car with their child. This serves as marketing and in the long term can be used to build a loyal consumer base. When it comes to building a strategic vision, a SWOT analysis is a crucial first step. Other complementary products Engen could consider are car washes and fast food brands. | 4 ENGEN PETROLEUM LTD- SWOT ANALYSIS 4.1 Engen Petroleum Ltd- Key Strengths 4.2 Engen Petroleum Ltd- Key Weaknesses 4.3 Engen Petroleum Ltd- Key Opportunities 4.4 Engen Petroleum Ltd- Key Threats 5 ENGEN PETROLEUM LTD- KEY EVENTS AND HISTORY 6 ENGEN PETROLEUM LTD- BUSINESS OPERATION STRUCTURE 7 ENGEN PETROLEUM LTD- MAJOR PRODUCTS AND SERVICES Another solution that can much better mitigate the risk suppliers pose to the company is backward integration. Engen is an African-based energy group focused on the refining and marketing of petroleum, lubricants and functional fluids, chemicals and retail convenience services, through an extensive network of service stations across 7 countries in sub-Saharan Africa and the Indian Ocean Islands. Utilising more technology to make sales both in the fuel station and the convenience store more efficient and enjoyable for consumers could build a stronger consumer base. This location saves consumers time and thus builds brand loyalty. Key historical events and summary analysis of the company and strategy of the company are provided. They also produce and sell hydrocarbon solvents, as well as various polymers and bitumens. There are currently many competitors in the market. Engen is majority owned by PETRONAS (74% holding), one of the world’s leading oil companies and a member of the FORTUNE 500. This initiative highlighted the companies shared goal of reducing wastage and their commitment to being more environmentally friendly by reducing landfill waste. Due to fuel price regulation, price cannot be used as a competitive advantage over competitors. SWOT is a known acronym in the business world which stands for strengths, weaknesses, opportunities, and … GradesFixer. This can be done by offering exclusive deals at forecourts which incentivise consumers to choose Engen and Woolworths over other fuel stations and forecourts. By continuing we’ll assume you board with our cookie policy. Opening a franchise isn’t cheap. There are several other fuel stations in the country that can provide substitute products to consumers. It is also important to have employee benefits such as discounted meals and paid leave. SWOT Analysis is a proven management framework which enables a brand like Total to benchmark its business & performance as compared to the competitors and industry. CD-ROM - US$ 300.00 These could attract more consumers and thus create a competitive advantage. VISION. Weaknesses are used to refer to areas where the business or the brand needs improvement. It has also served as marketing to new consumers. Analysis any or all of the four categories simultaneously.For an organisation to monitor its overall growth as an organisation, a SWOT simple analysis is a fundamental process they need to undertake. It is therefore important to ensure that fuel is transported and stored in the correct manner to prevent water getting into fuel and damaging the engine of a consumer’s car. STRENGTH -online marketing capability, Ford is providing consumers to select their car through the website and allow to customize the interior, exterior and engine color and etc. In 2014, Woolworths extended its Wrewards programmes to Foodstops at Engen garages. From this, it is evident that African spending makes up a large portion of the companies’ turnover. You can get 100% plagiarism FREE essay in 30sec, Sorry, we cannot unicalize this essay. This can be done by expanding the recycling project with Nampak to more fuel stations. Below are five steps to incorporate your SWOT analysis into your wider strategic planning process, ensuring it helps inform the decisions you make. Our SWOT Analysis depicts our key strengths and weaknesses for our new project. PHEMBANI, a black-controlled South African company focused on the broader energy sector, holds 21.2%, while a Phembani-led consortium holds the remaining 4.8%. Reducing wastage and their commitment to being more environmentally friendly by reducing landfill waste or the brand improvement. Strengths, weaknesses, opportunities and threats.A SWOT analysis of strategic alliance stores at fuel stations provide excellent service Privacy! Evaluate the strengths, weaknesses, opportunities and threats that our potential service! As its own materials and thus allow the company are provided in Durban as well as Woolworths ability. Strategy of the leading brands in the strategic alliance Between Engen and Woolworths are... 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