분야
docx1.1 Notable issues in history
1.2 Financial Summary
1.3 Business and Products
2 External Analysis
2.1 PEST
2.2 Indirect Threat
2.3 Direct Threat
2.4 Critical Threat
3 Competitor Analysis
3.1 Competitors, Market Commonality ‘High’ and Resource similarity ‘High’
3.2 Competitors, Market Commonality 'High' and Resource similarity 'Low'
3.3 Competitors, Market Commonality 'Low' and Resource similarity 'Low'
3.4 Competitors, Market Commonality ‘Low’ and Resource similarity ‘High’
3.5 Direct Competitor Analysis
4 Internal Analysis
4.1 Value Chain Analysis
5 Suggestion
5.1 SK Energy R&D center as competitive advantage for future strategy
5.2 Short-term strategy
5.3 Long-term strategy
According to the PEST analysis, it is possible to divide into direct threat and indirect threats. Through analyzing the threats, finding out the critical threat then establishing an action plan to deal with the critical threat will be concluded.
1) Requiring substitute for oil
As many developed countries used huge amounts of oil when stepping into better life, skyrocketing oil prices and global warming have resulted. Nowadays, BRICs and a lot of developing countries’ demand for oil is increasing, thus fear of oil depletion is spreading out amongst people. To counterattack against this situation, regulating the amount of carbon dioxide emission is obliged to many already developed countries under the name of Kyoto protocol. It is unavoidable for Korea as well to join the Kyoto protocol in the near future. MB government therefore conducts the “Low carbon green growth” policy to participate in trend of reducing emission of carbon dioxide.
2) Rising oil price
In July, 2008, Dubai oil prices exceeded $130. High demand from China and India caused the soaring of oil prices which had been stable for 20 years’ after the ‘Oil shock’ to that led to unstable condition in oil prices owing to imbalance in oil supply.
Source: Korea National Oil Corporation
3) Low carbon green growth policy
The current Korean government policy states to reduce green house gases and pollution and create a sustainable growth. Describing in detail, it aims to increase new energy sources from current 2% to 11% by year 2030; moreover, it aims to double the investment on green energy R&D. The government also mentions that it will support production of eco-friendly cars, aiming to have over 68,000 eco-friendly cars by 2012.
2.3 Direct threat
1) The biggest threat in transportation field
Among substitutes for oil, the most concerning problem comes from transportation. In case of SK Energy, 40% of its sales in 2008 revenue were accounted by the transportation area. Meaning, oil for automobiles charges the biggest proportion in SK Energy’s sales.
2008 Sales of main products
(Unit: million won)
Division of business Product Sales Ratio
Oil Gasoline 3,944,2 8.62%
Kerosene 1,149,175 2.51%
Light oil 14,305,219 31.28%
Bunker-C 4,325,009 9.46%
Others 8.529.079 18.65%
Chemical Total 10.364.632 11.66%
Others Total 3,199,965 6.82%
Total 45,737,326 100.00%
Source: SK Energy 2008 Annual Report
2) Substitute for current cars
To reduce usage amount of oil, replacement for current cars, which operate with solely on oil is essential. Hybrid cars and Hydrogen fueled cars would be alternatives for current cars.
3) Hybrid cars
Compared to Gasoline-Diesel cars, superiority of hybrid cars appears apparent. Gasoline-Diesel’s 18~23% of average efficiency energy means that most energy is lost with heat loss. Additionally, in case of driving in low speed, the fuel efficiency is very low. On the other hand, enhanced energy efficiency through electronic motor and battery, enabled hybrid car to operate better even in low speed. With much higher energy efficiency, hybrid cars consume less oil, representing that hybrid car is more efficient and eco-friendly. Following
