A Pestle and Swot Analysis of Shell Nigeria, 2023 Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment and micro-environment of Shell across the Nigerian market with a focus on the challenges faced by the company.
- Evaluate an organization's strategy, and business environment to identify issues, risks, and opportunities and how they affect its operations and strategic position in a market, using concepts such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies.
- Understand the concept of strategy analysis and how to apply it to a real case study company.
1.0 INTRODUCTION
Founded in 1907 on April 23, Shell is an international leader in energy and oil and gas companies employing 93,000 people with operations in more than 70 countries. Its base of operations is in London, England. The group operates in the exploration, production, refining, and marketing of oil and gas, and the manufacturing and marketing of chemicals.
Shell Nigeria is one of the largest energy companies in the world. The company plays a key role in helping the world meet the ever-growing energy demands economically, environmentally, and socially responsible. Shell Plc. has the largest footprint in Nigeria compared to all the oil and gas companies operating in the country.
The company has several subsidiaries in Nigeria which operate in different fields namely;
1. Shell Petroleum Development Company is Nigeria's largest oil exporting company.
2. Shell Nigeria Exploration and Production Company which is responsible for oil exploration as well as its production.
3. Shell Nigeria Gas is the sole international company operating in the field of gas production and distribution in Nigeria.
4. Shell LNG which produces LNG and natural gas liquids for export
In 2022, Shell Nigeria employed 2,652 people with more than 10,000 contractors. In 2021, it generated an annual revenue of $3,896,879,471.
This report will use the case study of Shell Nigeria to examine its macro and microenvironment. It will use frameworks such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies, to undertake a strategic overview of Shell Nigeria, including its financial performance, competitive microenvironment, competitive advantage, technological improvement, pricing strategy, and many others.
Key questions to answer include; what are the threats to Shell Company? What challenges does Shell face? What is the competitive advantage of shell Nigeria? What are the strengths and weaknesses of Shell Nigeria?