Swot Analysis Of British Petroleum

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1.1 Strong brand value British Petroleum (BP) is one of the world’s famous brands which operate since the beginning of the 19th century. It has a powerful holds in the market of United States which is also one of the largest consumers of oil and gas in the world. Based on Fortune Global 500 in year 2018, its brand was ranked at 66th with USD 19,610 million of brand value. It is still within the top 100 most valuable brands in the world. Not only that, BP brand was among the top 10 most valuable brands within the oil and gas industry(Brand Finance, 2018). Thus, a strong brand is an internal strength due to it can provide a competitive advantage for the company compared to other smaller brands in the industry(BP's strategic management). 1.2…show more content…
Through diversifying into different sources of energy, the negative perception that originates from oil and gas production can be overcome by the company. Besides, BP can explore the opportunity of renewable energy sector for future growth. Different energy has been invested by the company with over $500 million in the solar and wind energy between the periods of year 2000 to 2005. Nevertheless, these attempts are uninspiring to provide significant profits. Thus, BP should build up a particular business unit that focus on different energy and emphasize the business unit to make sure that it obtains sustainable advantages(BP's strategic…show more content…
Thus, these markets offer significant markets for BP to concentrate on the current markets by taking into consideration that they are in their maturity stages. Aside from entrance into new markets, BP can also spread their business risks. For example, the business risks originated from the Gulf oil spill in US can be spread by BP into new emerging markets in Africa and Asia. Lastly, emerging markets allow BP reduces the strong competitions in the current markets which create a competitive advantage for the company(BP's strategic management). 3.3 Diversifying Currently, there are many profitable markets expanding in the world. This gives an opportunity for BP to diversify through investing in other industries which are profitable. Due to the world rank of BP has dropped, oil and gas industry is getting more competitive which had lead to high risks. Thus, through investing in new profitable industries, it enables the company to increase their revenues and reduce the risks by diversifying their portfolio which will help to maintain or even increase the company’s market positions(SWOT Analysis of BP). 3.4 Low Oil

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