Business-Level Strategy: Analysis of Petroleum Industry in Kuwait

Running Head: BUSINESS-LEVEL STRATEGY 0
generic strategies
JUNE 30, 2018

BUSINESS LEVEL STRATEGY 1
Contents
Introduction.................................................................................2
Analysis of Petroleum Industry in Kuwait..................................2
Resources and capabilities...........................................................3
Means to attain the sustainable competitive advantage in the
economy................................................................................................5
Conclusion...................................................................................7
References..............................................................................8

BUSINESS LEVEL STRATEGY 2
Introduction
The analysis of the external environment facilitates in understanding the nature of
environment and competition in the industry. Environmental analysis is a strategic tool and
helps in assessing the impact of external and internal elements on the organisational
performance. The process of scanning and evaluating the environment of any organisation or
industry results in the identification of some positive trends/changes called as ‘opportunities'
and negative trends/changes ‘threats'. These changes are responsible for the enhancement or
hindrance in the performance of the organisation (Thomas Edison state university, 2018).
Analysis of Petroleum Industry in Kuwait
The study of the environment of the oil and gas or petroleum industry in Kuwait, states that
the petroleum industry in Kuwait is the largest in the country, which accounts for nearly half
of the country's GDP. The government of the country governs and owns the oil industry.
Kuwait's main oil companies include- Kuwait petroleum corporation (KPC), Kuwait oil
company (KOC), Kuwait National Petroleum Company (The oil and gas year, 2018). Before
discussing the required resources and capabilities that a company needs to have in order to
become competitively successful firstly, the competition or nature of competitive
environment has to be analysed. In the view that petrochemical industry is well regulated and
monitored, the market share is concentrated and the new entrants are restricted from entering
the industry. In addition, the customer sensitivity towards price makes the intensity of
competitive rivalry high. The industry in Kuwait uses advanced technology for the better
functioning of the firms (Export, 2017).
A company gain the competitive advantage by having capturing maximum market share, the
number of customers, brand loyalty, technology, bargaining power of suppliers and buyers,