PSO strategy

BACKGROUND REPORT Pakistan State Oil Company Limited is one of Pakistan’s largest companies which posted an after tax profit of Rs. 9.31 billion this year. For nearly two decades PSO had held the reigns of market leadership when it came to lubricants. Yet in 1994, when the government announced a new petroleum policy in which lubricants were deregulated, PSO failed to react and manage the challenges of the free market conditions. It did not expand its stagnant product lines, and the growing consumer needs were met instead by its closest competitors, Shell and Caltex. In 2000, PSO underwent a corporate restructuring, and thus began its transformation process that has seen it restored as market leader in POL products, and has regained significant confidence in its lubricants division. The following highlight the changes brought on for lubricants during the transformation process:
1. The formation of a complete value chain under the new business unit concept.
2. Extension of product line.
3. Technical seminars conducted for dealers.
4. Improved customer services. PSO’s extensive progress in such short time warranted it a proposal for privatization in 2003. Yet time passed, and the prospect of privatization kept being delayed. Finally, with the completion of PTCL’s privatization process this year, PSO is now scheduled to be next in line with the date set for the end of 2005.

1. BUSINESS SCOPE Business we are in:
• The provision of the highest quality petroleum products and services to customers.
Specific Region:
• 3,800 retail outlets (stations) scattered all over Pakistan’s geography
• Lubricants manufacturing plants in Korangi and Kemari
Who are we serving?
• Automobile owners
• High-Street distributors
What are we offering?
• High quality grades of lubricants
• The world’s leading brand of motor oils: “Castrol”
How are we achieving our goals?
• Integrated value chain
• Strong marketing capabilities
• Largest retail network