Bs Bp Report

Bs Bp Report

1. Introduction
This report approaches different frameworks of the strategic analysis to evaluate and identify the competitive environment of the British Petroleum, its key business strategies as well as identifying resources and capabilities of the company. First section provides general overview of the oil and gas industry in the UK and overview of the BP, second section discuss competitive environment of the firm applying Porter’s five force framework, the third section identifies some resources and capabilities and provide examples of how the company use its competences in order to gain competitive advantage and the last section suggests that BP have followed the cost leadership strategy for the company’s sustainable position.

  2. Overview of the UK Oil & Gas Industry and the BP
Oil and gas industry in the UK is a privatized energy sector that operates under European Union guidelines; in terms of the industry life cycle – mature, and highly competitive in upstream and downstream segments, which are exploration/extraction divisions, and refining and retail divisions (Business Monitor International Ltd, 2009). The UK oil and gas industry is the largest investor in the industrial sector of the economy, £5.7 billion of total investment was spent by oil and gas producers in 2007 and is expected to invest more than £5 billion in 2010 (UK Oil & Gas, 2010) The industry is dominated by BP, Royal Dutch Shell, ExxonMobil, Chevron, Esso. Oil and gas provide some 75% of the UK’s total primary energy, the UKCS satisfied about two thirds of the country’s primary energy demand: 94% of oil demand and 68% of gas demand (Oil & Gas UK’s Economic Report, 2010)
The British Petroleum is one of the main players in the industry and world's largest oil and gas companies. It has oil production and exploration operations in 26 countries and owns 19 refineries worldwide (Datamonitor, 2008). In the UK, BP operates around 1,300 services stations that...