Bp swot analysis essay
The main clients of BP are Aviations, Military and general airlines sectors and marine industry. BP operational strategy for oil business divided into two segments mainly: refining and marketing; and production and oil services. They are broadly classified into three categories; upper-stream operation deals which includes gas exploration and field development.
Lower stream operation consists of refineries and marketing network and the middle-stream operation associated with six factors: processing, management and ownership, natural gas pipelines, export terminals, NGL extraction and transportation to their consumers. Thus, their vertically incorporated position gives competitive advantages in the oil industry. The organization has very large number of consumer base worldwide. Their existence is in more than 80 countries in geographical market. Euromonitor The disaster occurs in the Gulf of Mexico and Texas plant in and in due to drilling and exploration of oil well and careless risk management and planning.
The exploration causes huge damage to the US environment.
Datamonitor BP acquired several assets around the world. These provide the organization significant long term growth and also emphasize company operational strengths and key interest around the world. BP has explored many new projects in the FY The discovery of new projects will enhance the BP production in future.
Mintel BP has diversified some of their investment in alternate business like solar and wind in FY The intervention of low carbon energy and bio-fuel technology will maximize the company profits and create a brand image in friendlier environment. There are many risk associated with BP oil industry. Environment and exploration damages in Gulf of Mexico, Texas and Turkey are some better examples, which may affect the brand image as well as operational cost to the organization.
The threat of new entrants is usually based on the market entry barriers. In the renewable energy market the threat of new player entering the market is low comparable to other sectors. Also the favorable government policies for existing competitors. The threat of substitution depend on the switching costs i. So as for now only fossil fuels pose as a significant replacement to renewable energy.
Basically all the major oil firms know the fact that fossil fuels will be destroyed sooner or later following which the alternative energy will become the way of the future. So all the companies invest their capital in developing alternative energy to position themselves early in new markets and also strengthen their position in existing markets.
Essay Preview: Swot and Pest Analysis of British Petroleum
Buyer power is a very important horizontal force which influences the misuse of the value created by a trade. The volume and the application of customers are the two most important determinants of buyer power. Supplier power is a direct reflection of the buyer power. By utilizing its vast capital and technological knowhow BP has developed its own internals supply network in every country it operates. McCarthy developed the idea of marketing mix 40 years ago.
It consists of four components- product, price, place, promotion. Pricing is a very complex area. The examples of price decisions generally consists of Pricing strategy ,optional retail price, amount discounts and extensive pricing, Cash or early payment discounts, cyclic pricing, Price plasticity, Price unfairness etc. Another dimension of marketing mix is place.
Essay Preview: Bp (British Petroleum) Swot, Porters Five, Key Success Factors
Its also known as channel, distribution, or intermediary. A product is a tangible physical identity by which both buying and selling can be done. The examples of product may include Brand visibility, Functionality, Styling, superiority, security, wrapping, maintenance and sustain, Warranty, trimmings and services.
The Customer Life Cycle which put emphasis on the delivery of lifetime value to the customer to retain them for the business. Last of the 4 p s is promotion. It represents various aspects of marketing communication, i. Marketing communication mainly includes promotional strategies like push and pull , promotions ,Personal selling, Sales advertisements , Public relations, Marketing budget.
Objective of NPD: The objective should run through a various process, while time launching is the crucial part than promotion pathways.. According to Ulrich and Eppinger, objective for budgets and finance have strong role to launch a new product in the market. Ulrich T and Eppinger D Idea Generation: Every successful product need comprehensive ideas, so idea generation is the first and most important part of any new product launch in the market also known as Fuzzy front end.
The company needs to analyze the SWOT to find its potential market and possible threats. Sometimes the idea of a new product generate with the opportunity analysis. Koen et al. Idea Screening: is a concept which eliminates unsound objects.
Bp (British Petroleum) Swot, Porters Five, Key Success Factors - Essays
Companies need to find the existing market size and target market where they can get a picture about the product whether it could be profitable or not. Some questions should be asked in this process like as, is there any target market lies which could benefit from the product? Keller P, Concept Development and Testing: is the framework where a product can be developing in the marketing and engineering details. Customer feedback is the most valuable part of a company where they assure about the future of the product which is going to be launch soon.
Koen et all, Business Analysis: A complete and flawless business strategy lies in various important implementations of marketing theories. The company has had to cut production after the incident, which has seen the sales and profitability drop significantly. Currently, the company has to continue with dealing with the effects of the Gulf oil spill. However, to prevent further reduction in production, BP can identify alternative oil wells since the normal production in the affected well will take more time to resume.
Situational And Pestel Analysis At Bp Commerce Essay
The external environment provides various opportunities for BP. First, the trend towards clean energy use provides an opportunity for BP to start producing alternative energy including solar energy, geothermal, and wind energy among others. The company can overcome the negative perception that emanates from oil and gas production by diversifying into alternative sources of energy. According to Giges n. This implies that BP can explore this opportunity for future growth.
The company has already started investing into alternative energy. However, these attempts have been minimal and lackluster to yield significant gains. Therefore, BP should develop a specific business unit to focus on alternative energy and prioritize this business unit to ensure that it derives sustainable benefits.
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Second, BP can explore the opportunity available in emerging markets. Emerging markets are significant in international business because they have growing markets. Therefore, these markets providing important markets for BP to focus on considering that the current markets are already in their maturity stages. Apart from accessing new markets, BP will also spread business risks. Finally, emerging markets will enable BP escape from the intense competition in the current markets. Less technological adoption and smaller companies characterize emerging markets.
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Therefore, BP will have a competitive advantage in these markets because of its large size and strong brand. Third, BP can also benefit from the new oil discoveries in different parts of the world. These new discoveries present strategic opportunities of BP, which is experiencing reduced production in some of it current oil fields. To avert a situation where oil drilling will be halted by the depletion of oil resources, BP should now focus on the new oil discoveries. This will ensure that business operations are sustainable.
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One of the threats facing BP is the stringent regulatory environment.