SWOT AnalysisStrengthsOne of ConocoPhillips' greatest strengths is its enormous size, making it the second largest American oil company. With an extensive presence in more than 30 countries, the company has approximately 10,000 points of sale to distribute gasoline. This enormous financial size of the company also allows it to explore, extract, produce, refine, market and distribute across various locations, thereby giving rise to growing revenues. The company adopts the principle of risk diversification. LUKOIL, which undertakes risky projects like exploring Russian blocks, is a company in which ConocoPhillips has a 20% stake. This 20% investment in LUKOIL allows companies to reap profits by undertaking risky projects without taking considerable risks. By providing technical expertise to LUKOIL, the company has maintained good and cordial relations with the Russian government. Weaknesses ConocoPhillips' main weakness is not having stable revenue or profits. The price of oil is strongly affected by small changes in global economic phenomena, so this high price volatility often makes earnings forecasts wrong. ConocoPhillips' unlevered beta is comparatively higher than the industry at 1.21, showing that the company is very sensitive to market conditions. When economic conditions are well above normal, the price of oil rises, thereby increasing profits above expectations, while a negative result is the case in poor economic conditions. This dependence of revenue on oil prices poses a risk to the company's business model and shows that the company is exposed to a higher degree of risk. Having an almost total dependence on oil for its activity, the company cannot in any case be satisfied with paper, lubricants and solvents. To remain competitive and increase its profit margin, the company must focus on cost minimization techniques so that when oil prices fall, the company continues to have high profits compared to other players in the industry. This will put the company in a superior position compared to others, allowing it to undertake new profitable ventures even during times of falling prices. Oil mines are not sustainable and over time they become depleted. Therefore, over time, when the mines are exhausted, the company will experience negative profit growth. To avoid this situation, the company must research, identify and locate new oil mines to extract. The company must be ready with the acquisition plans in case it gets the opportunity to acquire high yielding mines..