900 WORD Essay Example | Topics and Well Written Essays - 1000 words

900 WORD - Essay Example line, this report is a report which will propose a forward strategy to BP by looking at it internally and scanning its external environment through the use of strategic management tools. According to Porter, companies can stick to three best strategies—cost leadership, market segmentation, and differentiation. Generic strategies are highly commended because they identify a certain area that a company can focus instead of trying to be â€Å"everything.† (Thomson 2004). Looking at BP’s strategic statement1 in the light of Porter’s generic strategies, it can be noted that BP is following a differentiation strategy. In general, it can be seen that energy products are marketed as â€Å"high performance fuel with outstanding engine cleaning power which burns more smoothly and completely† (BP Global 2006). Instead of just being one of the typical players in the market, BP has differentiated its products by offering â€Å"cleaner fuels† and alternative energy sources. This is directly in line with the company’s name which stands for â€Å"Beyond Petroleum† which communicates the oil manufacturer’s concern for the environment (BP 2006). By differentiating itself against its competitors, BP gains a strong foothold in its target market. SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is one of the most widely utilised business models in assessing the current position of a business entity. In order to prose a strategy to BP, this paper recognise that the company’s strengths should be matched with its opportunities. The appropriate strategy should also minimise the threats and reduce the weaknesses. Strengths: BP’s main strengths are its size, scope, and brand. As one of the largest players in the industry, the company exerts significant influence in to the other business organisations within its value chain. BP also enjoys being able to offer the global market with its products through its wide network of distribution channels. BP has established