SWOT ANALYSIS ON Baker Hughes

[abhishreshthaa]

Baker Hughes BHI is the world's third-largest oilfield services company behind Schlumberger and Halliburton, its main competitors. Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion, production and reservoir consulting. Baker Hughes operates in over 90 countries worldwide mainly based in countries with a mature petroleum industry as is the case with most oil & gas service companies. Baker Hughes has its headquarters in the America Tower in the American General Center in Neartown, Houston.[1][2]

Baker Hughes Incorporated was formed when Baker International and Hughes Tool Company merged in 1987. Baker Hughes operates worldwide with major offices in Liverpool, United Kingdom, Singapore, Dubai, Research & Maintenance Facility in Celle, Germany, Lafayette, Louisiana, Houston, Texas Pescara, Italy, Kuala Lumpur, Malaysia and Liverpool, United Kingdom. The company is administered broadly in two Hemispheres; Eastern Hemisphere with five Regions (Europe, Africa, Middle East, Asia Pacific & Russia/Caspian) and Western Hemisphere with four Regions (Canada, US Land, US Gulf & Latin America); each of these Regions is subdivided into Geo Markets.

Strengths

* Strong market position
* Extensive refining and marketing operations
* Cash generator
* Wide geographical presence

Weaknesses

* Strong cash position
* Declining reserves
* Bad public perception

Opportunities

* Agreement with Archer Daniels Midland to work on renewable transportation fuels from biomass
* Increasing demand for refined products in China, India
* Increase in demand for natural gas in North America

Threats

* Economic slowdown in the US and EU
* Environmental regulations
* Tax regulations in the US
* Increasing labor costs

 

[Business-education]

Swot analysis is the first step in building brand but there are numerous disadvantages such as it is based on assumptions and the hypothesis for research can be wrong and even it is affected by prejudices. But, there are ginormous advantages like it helps you to know about market more and understand market trends.