Strategic Analysis of Origin Energy: MBA600 Presentation, Australia

This presentation delivers a strategic analysis of Origin Energy, an Australian energy company. It begins with an overview of the company's vision, purpose, and values. The analysis delves into Origin Energy's internal and external factors, leveraging frameworks and theories to identify its competitive advantages, such as access to reserves and company culture. The presentation examines the sustainability of these advantages, highlighting long-term contracts and market capabilities. It also addresses the impact of the COVID-19 pandemic on the company's business strategy, including initiatives to support customers and employees. Furthermore, the presentation outlines strategic opportunities for expansion and innovation while acknowledging potential risks like economic instability and fierce competition.

Strategic analysis
Of Origin Energy

 This presentation will discuss about-
 Brief overview of the selected Company
 Analysis of the internal and external factors of the
company with the help of frameworks and theories
 Competitive Advantage of the Company
 The strength, weakness and future sustainability of
Competitive Advantage
 The impact of Corona Virus on business strategy
 Conclusion identifying strategic opportunities and risk
(Abushova, Burova and Suloeva 2016)
 The company selected for the purpose of this study of
strategic analysis is Origin Energy of Australia.
Introduction

 The Origin Energy Company has the vision of- “lead the
transition to a clearer, smarter and customer-
centric energy future.”
 The Origin Energy Company has the purpose of-
“Getting energy right for our customers,
communities and planet.”
 The Origin Energy Company has the values of-
 Working together as a team
 Being a champion for the customers
 Caring about their impact
 Being accountable for their activities
 And finding a better way (Phillips and Moutinho 2018).
Brief overview of the selected Company

Strength
Strong position in the market
Continuous growth
Integrated Operations
Customer centric approach
Weakness
Infrastructural failures
Limited presence in the market
Opportunities
Expansion Opportunities
Technology innovations
Threats
Fierce market competition
Fluctuation in the prices of certain
resources such as Oil.
Uncertainty in the availability of
resources
Analysis of the internal and external factors of the
company with the help of frameworks and theories

Political factors
Government Interventions and
regulatory policies
Technological factors
Introduction of technological
innovations for generating
smarter and cleaner resources.
Economic factors
Interest rates and Foreign
exchange rates
Fluctuation in the prices of the
available resources such as oil.
Legal factors
Cost Pressures due to DMO and VDO
regulations.
Social factors
Increasing awareness of the
customers about global warming
and extinction of non-renewable
resources.
Changing demand of customers
Environmental factors
Reducing the organizational impact
over the impact through various
sustainable initiatives.

 The competitive advantage of the Origin
energy Company includes-
 Access to reserves at a much competitive
prices provides an advantage to the
company
 The culture and capability of the company
also provides it an advantage over others
Competitive Advantage of the Company

 The company is able to gain its competitive
advantage with the help of-
 Easy access to equity resources, contracts with
companies such as BHP and ESSO for longer
periods.
 Easy access to gas from ALPG due to the
contract till 2034
 Easy availability of beach gas from Cooper JV
 With the help of its culture and capabilities, the
company is able to innovate het easy access to
markets and also easy access to resources.

 The strength of the competitive advantage of the
company is that:
 It is sustainable because long term contract have
been entered by the company that can be renewed
 The company is well known in the exiting market that
it serves due to its capabilities and resource strength.
 The weaknesses that may be faced by the
competitive advantage of the company is that
 If the company’s contracts breaks with other
companies due to some political issues
The strength, weakness and future sustainability of
Competitive Advantage

 The competitive advantage of the Origin
Energy- it’s easy access to reserves at
competitive prices and also its culture and
capabilities are sustainable because-
 The company has entered into long term
contracts with different companies that will
provide it with the resources or reserves
 The contracts can be renewed (Strang
2018)
 The company has a proven capability both
in emerging LNG and also the existing
domestic markets

 The Origin Energy is undertaking a number of
initiatives for helping its employees and customers
amidst the pandemic outbreak of COVID through:
 Ensuring the customers and employees that the
company will be extending help to all those
suffering from COVID-19.
 Staff occupying critical organizational positions
continue to run the power stations and LPG and gas
operations
 Undertaking necessary precautions at workplace for
ensuring workplace health and safety if the
employees.
The impact of Corona Virus on
business strategy

 However, the post covid crisis may affect
the company through-
 Drop in the gas and oil prices
 Company may have to reconsider its
outsourcing activities fgor corporate
function, shift its IT to cloud such as moving
the operating functions that are non-core to
the contractors.
 Change its overall corporate strategy

 Some of the main strategic opportunities
that are available to the company includes-
 expansion across border into new regions
 Making technological innovations for the
purpose of improving the quality of
customers services (Prajogo 2016)
 Improved customers and employees
relationship due to the support extended by
the company at the time of Covid.
Conclusion identifying strategic opportunities
and risk

 The strategic risks of the company may
include-
 Its inability to adapt to the post-crisis
economic conditions through effective
changes in its existing strategy including
changes in the value chain and supply
chain.
 The prices of gas and oil are expected to fall
in the post-covid period and therefore the
company’s strategy should be changed in
such a way that can help in adapting to the
same .
 Fierce competition in the energy industry

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References