Saudi Aramco SWOT Analysis Report

SWOT Analysis

The SWOT analysis for Saudi Aramco is constructed based on personal perceptions and judgments – it represents the current state of the organization and its future evolvements. It should be noted that Saudi Aramco is a major company that is often mentioned as one of the leading businesses in Saudi Arabia and the world (Gharamah, Noordin, Ali, & Brohi, 2018). Therefore, its strong and weak sides also have a global impact and shape its future opportunities along with worldwide trends.


One of the major Saudi Aramco’s strong sides is its size of production. Furthermore, the company has a wide reach of its projects which directly affect the situation not only in the local but also in the global market. The organization’s academic and technological advancements are also among its strengths. Saudi Aramco shows that scholarly research is vital in creating a new path for the business. Finally, the promotion of sustainable practices has to be mentioned as well. Saudi Aramco’s focus on the environment allows it to become more reliable, future-oriented, and stable than its competitors.


While the company’s impact on the market is substantial, its reliance on crude oil sales highly affects the profitability of Saudi Aramco. If the importance of the oil market decreases, the business’ earnings will fall drastically, virtually rendering Saudi Aramco’s efforts insignificant. Although this scenario is highly unlikely, the organization should not ignore the problem of dependency on one product. The second possible weakness lies in the low level of transparency of all operations due to the corporate governance structure established in the business. The framework may become a barrier to future collaborations with other companies which demand higher levels of transparency from their partners.


With its current and future resources and technological advancements, Saudi Aramco has many opportunities for growth. First of all, its place in the international market can be strengthened with the rising demand and energy consumption levels. Oil production is one of the pillars of the global economy. Thus, Saudi Aramco can use its position to shape the future of this sector. Secondly, the company’s focus on the environment can help it lead others in pursuing sustainable initiatives. Practices can be improved and changed to ensure that Saudi Aramco stays the leader in the field of innovation.


The main threat to the business’s current and future endeavours is the rising interest in renewable energy. If the market changes with the introduction of newly affordable renewable sources, Saudi Aramco’s position may be devalued. While this shift may not occur quickly, it should not be disregarded as impossible. Rising population levels and depleting reserves of the planet can explain the need for renewable energy sources. Moreover, other countries’ pursuits to compete in the market of crude oil sales can also decrease the global market share of Saudi Aramco. While this issue is not as significant, it can become a substantial problem in a short period of time if left unacknowledged.

Organizational Marketing Strategy

According to the company’s reports, the strategy that Saudi Aramco pursues is based on five main pillars. The first lies in the need to reinforce Saudi Aramco’s place in the market for oil and gas production (Saudi Aramco, 2017). Although it is currently considered to be at the top, Saudi Aramco realizes that this position should be maintained (Gharamah et al., 2018). Second, Saudi Aramco aims to diversify its operations and collaborate with other global firms to improve its supply and value chains. It also focuses on sustainable development practices. For instance, the organization contributes to public projects and infrastructure development. Furthermore, it continuously participates in research and technology development to promote innovation. Finally, Saudi Aramco wants to create more jobs and attract more specialists to the sphere of oil development.

Organizational Competitive Strategy

The competitiveness of Saudi Aramco is founded on its strengths and strategies. The company is interested in sustainable practices not only because of their impact on the environment but also their effect on communities and the global market. For instance, its contributions to state-wide initiatives improve the country’s infrastructure and raise the level of Saudi Aramco’s trustworthiness and reliability. The organization creates a foundation for other citizens and ensures that its place in the market is secured by both profits and image. Moreover, the contribution of Saudi Aramco to research and development projects also benefits its processes and internal changes (Gharamah et al., 2018). The focus on innovation helps Saudi Aramco to be one step ahead of other firms and present products that correspond with the latest environmentally-friendly mindsets.

Conceptual Framework

One of the main problems – the reliance on crude oil – is the issue that Saudi Aramco has to address to stay relevant in the market. According to Krane (2015), the company acknowledges its threats and works towards developing this sector into a refining one, thus aiming to change the focus towards less insecure patterns of collaboration with other countries. This strategy, however, is hindered by the fact that oil remains the only possible product that Saudi Aramco can present. The mentioned above threat of the changing market is closely connected to this issue. Nevertheless, as Krane (2015) notes, Saudi Aramco’s choice to lower its reliance on crude oil sales is directly influenced by geopolitical effects. Currently, the organization considers the changing market and works to improve its economic strategy.


Gharamah, A., Noordin, M. F., Ali, N. I., & Brohi, I. A. (2018). Knowledge management practice in the private sector: Building the way for Saudi Arabia’s strategic growth and transformation to a knowledge-based economy. International Journal of Engineering & Technology7(2.34), 69-73.

Krane, J. (2015). A refined approach: Saudi Arabia moves beyond crude. Energy Policy82, 99-104.

Saudi Aramco. (2017). Saudi Aramco annual review 2017: Unmatched opportunity. Web.