BP

BP

BP

SWOT Analysis

Strengths

BP is ranked at the world's 3rd largest energy company and is positioned as a multinational oil company headquartered in London that:

Operates petrochemical businesses worldwide through the network of its subsidiaries and retail brands(Amoco; ARCO; BP Express, BP Connect; BP Travel Centre; ampm; Burmah Castrol etc)

Participates in London Stock Exchange, IPO in New York Stock Exchange. and is listed in the FTSE 100 Index;

BP Amoco strong brand loyalty for oil;

Strong brand management driven by the 'Beyond Petroleum' slogan.  

BO Q3 net profit increase by 83% due to record oil and gas prices. The indicator amounts to $53.43 per share compared to $21.27 during the same period in 2007.

Weaknesses

Launch of controversial business with the Baku-Tbilisi-Ceyhan pipeline;

Increase in petrol prices in the UK;

Explosion of BP refinery in Texas that caused 100 injuries and 15 deaths in 2005;

Criminal charges due to the spread of 270.000 gallons of crude oil in the Alaskan tundra in 2006;

Toxic spill of 2,000 gallons of methanol in the oil field (Prudhoe Bay) managed by BP.

Closing of Alaskan oil wells.

Opportunities

8 b. USD investment in the research of alternative fuel methods, including hydrogen, natural gas, wind and solar over the forthcoming decade;

Expansion of frontier areas suitable for BP's future reserves (post-Soviet Union territories);

Extension of strategic oil and gas acquisitions in North Sea area;

Launch of more flexible price policy to compete main rivals;

 Threats

Environmentally unsound policies due to oil and toxic spills;

Occasional refinery explosions;

Corrosion in pipelines;

Competition from Shell and Chevron

Ceasing operations in a number of potential locations  with their further re-branding (Conoco);

Sale of corporate-owned stations;

More than 5.000 shortages within coming months;

$66,71 per barrel creates considerable tensions for running oil business;

Further lawsuits considering the company's ecological activities;

PORTER FIVE FORCES

BP is innovative, committed to the protection of the natural environment, progressive in its restless search for improvement and, above all, performance driven determined to deliver on every commitment made to all those with whom they do business.

They are committed to the safety of their people, and to the safety of the communities in which they operate. Its aim is to do no damage to people or to the environment. Its values are expressed in its brand.

They believe in these values, provide the basis on which individuals and communities around the world can give them their trust. They set the foundation for relationships built on the principle of mutual advantage. They believe that they can demonstrate that its activity in every place in which they operate is for the benefit of the whole community and every individual.

RIVALRY

In the customary financial model, competition amidst competitor companies drives earnings to zero. But competition is not flawless and companies are not unsophisticated passive cost takers. Rather, companies strive for a comparable benefit over their rivals. (Al-Farsy, 2006)The power of rivalry amidst companies varies over commerce, and strategic analysts are involved in these differences. (Kanovsky, 2002) Economists assess rivalry by signs of  commerce concentration. Rivalry is volatile and can be intense. The clinic commerce, for demonstration, is populated by clinics ...