Simply known as Shell, Royal Dutch Shell, which was headquartered in The Hague, Netherlands, is a multinational oil company engaged in oil and gas exploration and production as well as transportation and marketing of natural gas and electricity and marketing and shipping of oil products and chemicals. Shell also has interests in renewable resources of energy such as wind and solar and hydrogen. With its extensive operation in over 140 countries, Shell now employs more than 300, 000 people. In the fiscal year ended December 2006, the company had reported revenue of $318, 845 with 3.9% increase from that of 2005. During the fiscal year 2006, Shell incurred $45, 777 million of operating profit and $26, 311 net profit, a 0.3% and 0.2% increase over the previous year, respectively. The SWOT analysis of the company is as follows:
▪ Strong brand equity
▪ Long standing and financially sound firm
▪ Extensive resources
With a trademark that is globally recognized, Shell is the fourth largest company in the world and the second largest private sector energy corporation. The company has also several branches and sub-offices worldwide apart from its oil refineries and subsidiary companies, making possible the penetration of Asian, African and North American Markets. The image that the company had established over the decades is of integrity and honesty which was perceived to be the key in accumulating the large customer base. Apart from its long range of products consisting of oils, lubricants, diesel fuel, jet fuel, petroleum-based products and oil refinery heavy equipments, the company has also ventured into a large network and supply-based transportation of oil products in different destinations.
▪ Operating in unstable environment
▪ Negative perceptions regarding operation
▪ Tendency of committing unethical environmental practices ▪ Prices