SWOT Analysis Of British Petroleum (BP) This SWOT analysis examines British Petroleum (BP), on e of the world's largest energy companies, which is nown for its petrochemical !usiness around the world" #ead$uartered in %ondon, &ngland, the company co mpany participates in the %ondon Stoc &xchange and the ew or or Stoc &xchange as well as is listed on the TS& *++ ndex" The company has experienced challenges in recent years, including costly and !rand-!reaing accidents as well as pressure to address glo!al climate change targets and focus on corporate social responsi!ility" The company's strengths and weanesses are assessed in order to ma e recommendations a!out how it can tae ad.antage of opportunities while addressing any percei.ed threats that may appear in the short or long-term for this company" Strengths •
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BP has a num!er of o f su!sidiaries and retail !rands that include /moco0 /12O0 BP &xpress, BP 2onnect0 BP Tra.el 2entre0 /34P30 /34P30 Burmah 2astrol, etc", which wh ich pro.ide the company with a di.ersified re.enue portfolio rather than simply relying on its energy !usiness" BP /moco /moco has a strong !rand loyalty to its oil !usiness" ! usiness" The 'Beyond Petroleum' slogan has ser.ed BP well so that it is !eing recognised for its participation in other industries and marets" BP has wored extensi.ely to re!uild its image in the wae of the recent accidents and mishandling !y executi.es, including a greater focus on corporate social responsi!ility as well as transparency and more thoughtful communication"
Weaknesses •
The company has faced many oil spills and disasters that led to fatalities and significant en.ironmental damage around the world"
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2ompany executi.es were dishonest and poorly handled these disasters, which further tarnished their image and led to massi.e penalties, pen alties, fines, and costs to assist those areas that were damaged"
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The ongoing focus on climate change and the reduction in the use of fossil fuels has put more pressure on the company to migrate into pro.iding clean energy options"
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BP has closed many oil wells, leading to many layoffs, which ha.e occurred in poor economic cycles, furthering the !rand image that the company is uncaring and greedy"
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The competition has !een positioned as more responsi!le and attracti.e due to these many missteps, putting BP in the position of ha.ing to play ca tch-up to the maret leaders in their industries"
Opportunities •
The company has the potential of !ecoming a maret leader in many alternati.e fuel and energy marets if it can in.est in research and reposition its strategy" These maret opportunities include wind, solar, and hydrogen"
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There are opportunities for BP to expand into new geo graphic territories with its alternati.e fuel and energy opportunities"
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BP has the opportunity to partner with certain countries in de.eloping solutions for infrastructure issues in order to mo.e into the use of clean energy options, positioning the BP !rand around inno.ation and en.ironmental responsi!ility"
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BP can focus on further de.eloping many of its su!sidiaries that are outside of its petrochemical focus to enhance re.enue streams in these areas"
Threats •
&n.ironmental issues may continue to !e a threat if the company does not formali5e its corporate social responsi!ility and put it at the forefront of its strategy, including re.ising worplace safety issues in order to reduce refinery ex plosions, oil leas and spills, pipeline corrosion and other en.ironmental ha5ards"
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The company will continue to face lawsuits and penalties if it does not address these en.ironmental issues and poor safety practices, which will significantly impact the company's sustaina!ility"
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t faces increased competition from other companies lie Shell and 2he.ron, which are dealing with these en.ironmental issues !etter than BP and ha.e enhanced their !rand reputation"
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The company also faces competition from the emergence of specialised alternati.e energy companies that are offering the technology and afforda!ility to encourage greater migration away from the reliance on fossil fuels, which could decrease BP's customer !ase"
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BP's tarnished !rand reputation continues to !e a threat to its future growth and profita!ility potential due to how it handled the last ma6or disaster associated with the company"
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The glo!al, regional, and local regulatory en.ironments continue to !e a threat as changes in regulations impact how BP can do !usiness"
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&conomic pressure is a threat, especially in terms of .olatile oil prices around the world, furthering the need to focus on the migration to alternati.e fuel for its energy solutions"
