Business Analysis and Corporate Strategy of BP GROUP PLC Essay

Business Analysis and Corporate Strategy of BP GROUP PLC - Essay Example The customers had a high bargaining power in regard to petroleum products. The buyers of BP products are always price sensitive hence the company has always ensured the prices are relative low to maintain them. The bargaining power of the supplier is low in regard to BP Group Plc since the suppliers of petroleum products are few in number. The bargaining power of the supplier is also low because there is availability of suitable substitute products similar to those supplied by BP. There are other petroleum company that produces petroleum products similar to those produced by BP thereby making the bargaining power of the supplier very low. 1 The bargaining power of the buyers of petroleum products is quite higher is high since the buyers are many in number. The buyers purchase a large potion of an industry's total output and a significant potion of a supplier's annual revenue. There is a clear revelation that revenues of the company have been increasing since 2000 since the company's turnover in 2000 was less that 100 billion and in year 2005 they were over 150 billions. 2 The company has significant strengths in regard to brand name. ... Their production accounts to three percent of gasoline supply in the US. Another company's strength can be seen where BP is ranked to be the leading company in sale and distribution of solar panels. This resulted after acquiring Lucas Energy Systems and Solarex in 1980 and 2000 respectively. On the sale of photovoltaic, BP had a world market share of twenty percent in 2004 after producing 90 mega watts of solar panels. This ranking increased BP's brand loyalty hence to the advantage of the company as the sales increase drastically. Since 2000, BP Company has been eager to embrace new technology in their product. They have always ensured that their products are integrated to suit their customers' tastes and preference. This opportunity has ensured that the company is produces world class products thereby increasing their market share. BP Company has had a number of threats in terms of competition. Since year 2000, there have been a number of new companies that have been established that deal with petroleum products. This competition is a threat to the growth of BP company hence for them to prevail in the market they have to ensure they use their market strategies properly. The opportunity of BP Company is seen where the company merged with Amoco Company. The company took the merger advantage as it was able to produce other products that included solar panels. The solar panel were produced when Lucas Energy Systems and Solarex were acquired by BP in Amoco acquisition. By increasing the number of product the company dealt with, the company ensure that if the market share is low for one product, it might be high for the other products. This ensures that the company's sales will always be high