Introduction:
The Repsol Group was formed in the year 1986 by the prime minister of Spain, since its incorporation the management of the group have taken several measures to increase the revenues and expand the operations. The primary strategy of the group is to acquire various companies both inside and outside of the sector. In the year 1989, the company was made public and the shares were offered to the general public.
The operations of the group have been increased drastically even after the privatization, sooner after the privatization the Repsol have become Spain’s largest holding company in terms of the revenues. Furthermore, it also get almost 50% of the share of retail petroleum distribution market. During the crises in Gulf, the management of Repsol decided to diverse and for this purpose they have acquire 25% shares of the Future Gas Natural Holding Company.
In addition to the above-mentioned diversification, the management of Repsol have followed a unique strategy which is often called as Latin American strategy. In this strategy, the investor identifies the company which have most positive future prospects, the companies can be in the same country or can be in the country where the culture and management style is almost similar the potential investor. For this purpose, the Repsol have identified the YPF as the target company.
Repsol Word file Harvard Case Solution & Analysis
Strengths of Repsol:
It can be said that the infrastructure and logistic system of Repsol is one of its main strength, the logistic system is one of the most crucial key success factor. If the logistic systems and infrastructure of the petroleum company is not sophisticated and advance the operations of the company cannot be expand and the increment in theprofits cannot be guaranteed as well. The logistic system of the Repsol is very efficient and is considered as one of the most efficient logistic system in the Europe.
The reputation of the company can also be regarded as the biggest strength of the Repsol, the brand recognition and awareness of the company is very high, the brand is recognized by almost all the customers and potential customers. Moreover, the reputation of the company in the eyes of shareholders and debt providers is also very positive, the finance providers are very satisfied with the company and its management which is very vital for the Repsol, given the fact that they are expanding this reputation becomes more important under this scenario. (REGIONAL ASSOCIATION OF OIL, GAS AND BIOFUELS SECTOR COMPANIES IN LATIN AMERICA AND THE CARIBBEAN, 2017)
Weaknesses of Repsol:
The main weakness of the Repsol is the acquisition choices, although their acquisition strategy seems to be very important for the company but it can be argued that because of their aggressive acquisition strategy the company have to bear significant losses and the operations of the company have also been affected adversely due to this bad acquisition policy.
On the other hand, the future of the company is can be regarded as very uncertain, the fact that in the recent times there have been very much development undertaken to increase the use of renewable energy and in order to reduce reliance on the non-renewable energy resources such as oil and gas...............
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