Competitive Strength Assessment

Running head: COMPETITIVE STRENGTH ANALYSIS
Competitive Strength Assessment
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1COMPETITIVE STRENGTH ANALYSIS
Table of Contents
Part A...................................................................................................................................2
Overview of BP Australia and Industry...........................................................................2
Competitive Strength Analysis of BP Australia and its Rival companies - Caltex and
Shell.............................................................................................................................................3
Key Success Factors for the Industry..............................................................................4
Competitiveness of BP Australia against its Rivals........................................................5
Strategy Selection Based on Competitive Position in the Market...................................7
Part B...................................................................................................................................8
Peer Evaluation Form......................................................................................................8
References..........................................................................................................................11

2COMPETITIVE STRENGTH ANALYSIS
Part A
Overview of BP Australia and Industry
BP Australia operates its business within Oil and Gas Services Industry and is involved in
manufacturing and distributing petroleum services and products. The firm was established n
1919 and is situated in Melbourne Australia that operates as a subsidiary of BP Plc. The
company is involved in upstream exploration, crude oil and natural gas refining, downstream
marketing supply of necessary fuel, lubricant and bitumen products (Al-Dajani et al. 2014). The
company offers services and products to its consumers all over Australia. The company is
involved in exploration and manufacturing of oil, natural gas, liquefied natural gas along with
transportation, refining and marketing of lubricant or petroleum products. BP Australia
transports refined as well as unrefined products to and from terminals and refineries along with
the consumers employing gas carriers, ships, pipelines, trains and trucks. The company offers its
goods to retail and commercial consumers from several industries including aviation, racing and
retail service stations in (Australia bp.com. 2018).
Oil and gas services industry in Australia is robust that has resulted in substantial growth
over the past twenty years. In the industry the local organizations great considered to develop its
deep and remote resources in order to attain expertise in exploration and drilling technologies,
engineering and design along with operations and maintenance. The oil and gas industry of
Australia has a global reputation in order to deal with challenges associated with remote location
of its resources along with social and environmental challenges. Education and training ability of
Australia is also vita to global competitiveness of its oil and gas industry (Browne et al. 2016).
Since the 1965 drilling of first offshore well and with the modern coal seam gas boom, the

3COMPETITIVE STRENGTH ANALYSIS
industry has generated and sustained internationally respected, innovative services and
technology. This is built around the huge number of oil and gas projects.
Competitive Strength Analysis of BP Australia and its Rival companies - Caltex and Shell
Competitive strength of BP Australia along with its rival companies such as Caltex and
Shell is evaluated. BP Australia has competitive strength is in its exceptionally developed
business model. To maintain its competitive and sustainable position, the company has
maintained diversified portfolio all across business, geographies as well as resource types (Busch
and McCormick 2014). Developing the upstream and downstream businesses and properly
established trading capabilities can support in mitigating the impact of lower commodity pricing
cycles. The company has competitive advantage of maintaining balanced portfolio with
advantaged oil and gas along with dynamic investment strategy offers with resilience.
On the other hand, competitive strengths attained by Caltex include an efficient supply
and marketing infrastructure that had facilitated the company in attaining a competitive edge.
Moreover, a fast successful growth in the marketing business has also resulted in its profitability
increase. Board service and product portfolio including diesel, biofuel blends, precision spray
oils and marine fuels facilities in decreasing risks associated with one field and attain revenue
from a number of diverse sources (Caltex 2018). The company also has competitive strengths in
having efficient refining output results supported by stronger refinery margins, plant reliability
advantages along with having decreased depreciation charge. This has also resulted in the
company’s financial success.
Competitive strengths of Shell Company include strong market position, strong exploring
capability, vertical integration along with strong research and development. The company has