Bp british petroleum swot porters five key success factors

Contact us Today. Student Submitted Essays! The company was ranked third in the FTSE all share index ranking as at the close of 31st August, with a market capitalization of 82, The company has the opportunity to invest in alternative energy even though it faces significant competition from key rivals such as Royal Dutch Shell, Exxon Mobil and Chevron.

It is located worldwide with headquarters in England and the United States. The company works in the global energy business providing fuel and power.

Along with producing oil, it also works for renewable energy resources. This model will study how different external forces are acting on the company to affect its operations in the market.

Economic Factors that Impact Bp Plc

The competitors in the energy industry compete with each other in this sector based on different factors including the product differentiation, economies of scale, and the fixed and variable costs for these companies. All these factors determine how profitable these companies can be in this industry.

The energy industry is comprised of a very few strong, major companies and more small scale companies. For obvious reasons, the big companies have the major share in the market and the competition among these companies is becoming more and more intense with each passing year.

The world is now moving towards a situation where the oil fields are drying up and the companies are trying to capture the fair share of the market. As a result, these big companies like British Petroleum have started moving towards mergers with small companies to have a competitive edge over their other big competitors.

When it comes to renewable resources, these companies are in competition to build up the best possible ways to build up their ways of renewing resources. Threat of New Entrants Though this industry is very attractive due to major profits in this business and many more reasons, there is a less threat of new entrants into this industry because there are high barriers to entry including the high fixed costs involved in this investment of establishing an energy resource company.

Moreover, it is not easy for companies to enter this industry and compete with big names that are already selling because of their names and have captured a larger share of the market. Threat of Substitutes The substitutes present in any industry affect the profitability of any company.

Biofuels and other renewable resources can be the substitutes in an oil industry. There is still less threat from these because the companies are still working for their development and it will take them some time to replace the oil resources. So we can see that the threat from substitutes is moderate in case of British Petroleum.

Other than that, the government policies that oppose the use of fossil fuel are a threat for any company working in the oil industry.

Bargaining Power of Suppliers Suppliers for British Petroleum include the suppliers from oil fields, the engineers that work on it, other management and technicians.

Big names like British Petroleum have an edge over their suppliers in this case as they can bargain with their suppliers because the suppliers will not be willing to lose such business.

Moreover, the countries that possess these oil fields are also the suppliers so in that case, these countries have bargaining power over their buyers in terms of their policies.

Bargaining Power of Buyers In the Oil industry, the price of the oil depends upon the global demand for it.

Bp (British Petroleum) Swot, Porters Five, Key Success Factors Essay - Words

The countries which have high power and are developed also have a bargaining power over their supplier. Also when it comes to everyday consumers, the buyers have power too because it is very easy for them to switch to another oil supplier depending upon their own requirements.Industry Analysis (Porter’s Five Forces) THEORY Porter’s five forces, is a framework for analysing an industry, as shown on the following diagram.

Figure 2 Porter's Five Forces The aim of Porter’s five forces analysis is to find out how a business can compete is a specific sector. Bp (British Petroleum) Swot, Porters Five, Key Success Factors; Bp (British Petroleum) Swot, Porters Five, Key Success Factors.

Words May 20th, 10 Pages. BUS International Business Environment Small Group Assignment for Spring Semester The Critical Success Factor Of British Petroleum.

What is SWOT analysis? Strengths Weaknesses Opportunities Threats 5. BP Porter’s Five Forces Analysis What is Porter’s Five Forces Analysis? Threat of New Entrants Buyer Bargaining Power Supplier Bargaining Power Threat of Substitutes Rivalry 6.

Key Success Factors 7.

BP (British Petroleum) SWOT, Porters Five, Key success factors Essays

Conclusion 8. Referencing 9. Bp (British Petroleum) Swot, Porters Five, Key Success Factors Words | 10 Pages. reference 2. Procedure 3. British Petroleum British Petroleum (BP) Background 4.

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British petroleum . BP Strategic Report BP is one of the world’s leading 20 Our key performance indicators 22 Strategy, performance and pay 22 Annual statemen t by the remunerati on committee chair 53 Risk factors.

Business model For more information on our business model see page The key to a SWOT analysis is identifying the internal and external factors which are important to achieve the goals of the organization.

The internal factors include strengths and weaknesses of the organization and the external factors are the opportunities and threats.