Shell's Competitive Position in Oil & Gas

This assignment examines the competitive landscape of Royal Dutch Shell, a leading player in the oil and gas industry. It utilizes Porter's Five Forces model to analyze the company's position, considering rivalry, barriers to entry, threat of substitutes, bargaining power of buyers and suppliers, and Shell's own strengths and strategies for maintaining its market dominance.

Business essential extended project
INTRODUCTION British Petroleum Cairn
Oil and gas industry is also known as petroleum sector whose main
objective is to explore, extraction, refining and promotion of petroleum
goods. However overall industry is segmented into three different parts
such as; upstream, midstream and downstream. Mainly, this poster is
going to highlight the overview of four different companies in oil industry
and their current positioning at marketplace with the help of Porter Five
force model.
BP plc is a officially denoted as a British multinational
company in petroleum industry by having its headquartered in
London, England and seen as a world's seven largest organization.
In fact, according to survey report it has been observed that as per
performance in 2012 BP is seeing as a sixth largest company
because of their goods or services. However, according to past
two years of report this firm was expanded across the international
boundaries and established their branches in almost 72 countries.
Therefore, turnover of an organization get increases day by day
due to increment in consumer demand.
According to this factor of this theory various major
competitors of an organization is explained in order to analyse
competition level at marketplace. For example; major rivalry of
BP are Royal Dutch Shell, Cairn and so on. As a result they are
also coming with various ideas or methods of running a business
entity which may influence the success of a company in every
manner.
Oil and gas industry is growing in a rapid way due to
creation of modern world as well as few people seen it as a major
source of income generation. Therefore, it is analysed that various
other companies are establishing their branches at European
market for gaining maximum return on their investment. Hence,
in this factor of porter five forces an association can easily analyse
the danger from new emerging companies in order to make plans
as per requirement.
Environment friendly products in oil industry is major
threat in terms of close substitutes for BP because it aids in
reducing pollution.
In this sector purchasers are not having that any
authority to bargain or to do negotiation on price.
Bargaining power of supplier:- According to this factor an
association is facing number of suppliers in order to attain their set
objectives or goals.
Hence it has been analysed that in recent time BP is
having a turnover of almost US$183.0 billion which shows their
current positioning at marketplace and its overall scenario. In fact,
they are having a very positive goodwill due to which they get
succeeded in acquiring loyalty or trust of consumers in an
appropriate manner by satisfying their needs or demands at the
time of requirement. Moreover, considered as a very a strong
brand which makes them more successful or developed.
Company overview:- One of the successful company in oil industry which
is listed on London stock exchange and get succeeded in establishing their
number of locations in several other nations. Basically, Sir Bill Gammel
was a founder of Cairn in almost 1981 who is a international Rugby player
and acquired various other companies in order to become one of the largest
operators of oil or refinery. In fact they are focussing on expansion by
acquiring various other small companies for enhancing turnover of an
association. Hence, usage of porter five force model is describing is
describing below:-
Analysis of competitors aids in designing company schemes or
strategies in order to defend company from rivalries. In fact as per porter
rules it is essential to study the plan of other companies because it helps in
protecting Cairn.
Porters shows that industries are expanding across international
boundaries because of consumer demand which resulted in increase in threat
from new entrants. However, Cairn is facing a major issue from entry of
new companies which create a problem for selected business entity while
launching a new branch.
Society is worrying about their goodwill due to which sometime
get affected by availability of close substitutes.
Absence of consumer potentiality to negotiate.
Affected by raw materials suppliers of an organization because
they are liable for offering appropriate commodity to attain set objectives or
goals.
As per above data it has been analysed that current positioning of
Cairn is increasing day by day which makes aids an association in
enhancing image at marketplace. As per survey data it is identified that their
turnover maximized in a minimum time period by expanding current
branches across the global level.REFERENCES
Kelland, M.A., 2014. Production chemicals for the oil and gas industry.
CRC press.
Merrow, E.W., 2012. Oil and gas industry megaprojects: Our recent
track record. Oil and Gas Facilities, 1(02), pp.38-42.
Inkpen, A.C. and Moffett, M.H., 2011. The global oil & gas industry:
management, strategy & finance. PennWell Books.

Royal Dutch Shell Texaco
Oil industry has seen remarkable growth in past few years but
this does not mean that they have not gone through ups and downs. In
present scenario, this industry is on recovery mode as the war of oil
prices ending in gulf and other nations. Shell is a considered as one of
the most successful company of Oil and Gas sector. This organisation
earned profit of almost 234 billion US dollars in 2016. They are listed
among most valuable enterprises in this world. Below is porter's five
forces of Royal Dutch Shell:
In different part of this world, this firm has various rivals who
have similar financial position and organisational structure. This means
that competitive rivalry is high as competitors of this company always
try to capture untouched economy and steal market share of Shell. Exxon
mobile, Chevron from USA and BP from UK are other significant player
of this industry who have capacity to influence revenue of this enterprise.
It is low. Entering in oil and gas sector require huge amount of
capital which cannot be afford by most of the business organisation and
government of some nations. If any firm even have the money to invest,
then technology will be other constraint which will stop them. In
developing economy, some new companies are trying to enter in this
sector but they do not have capacity to harm business of Shell
organisation.
It is also low. Firms like Tesla and other auto-mobile
companies may focus on selling electric vehicle but they cannot be
considered as substitute of oil and gas. Hydrogen, coal and nuclear
energy are some other alternative source of energy but in present
scenario they are not reliable there is a big question mark on their
performance.
User of oil and gas do not have much power. Companies in
this sector decide price of their products and because of almost similar
price, customer do not have much option. They cannot switch to new
seller, if they are not happy with current one, because price and quality
of product is almost same.
Shell is not dependent on any suppliers because they have
their own sources of oil and they operate in different countries. This
proves that suppliers do not have any power and they cannot impact
growth of this firm.
This organisation is using latest technology for extracting oil
and gases. This is reducing their cost of production. Another factor
which is helping this company in gaining competitive advantage is that
they know that demand of petrol and diesel will decrease in long run.
This is the prime reason that they are concentrating on new types of fuel
which people will environment friendly and sustainable. Brad value of
Shell is among best in the world. Their high poplar decreases number of
challenges which they have to face at the time of entering in new market.
It is an American oil industry whose main objective is to
serve fuel for domestic as well as foreign clients with the help of
various appropriate facilities. In fact, Texas fuel company is an
independent company that was founded in almost 1901 by Joseph S.
Cullinan. In fact, this was only organization which is engaged in
selling gasoline under the name of similar brand in around 50 states of
US along with Canada also. Moreover trying to establish this
organization as a most famous or successful brand across the nation
and make it best amongst competitors. Apart from this, Texas fuel is
consider as a part of seven sisters which succeeded in dominating in
global petroleum industry from medieval of 1940s till 1970s .
additionally, recent feature in logo of this company is white star in a
red circle which signifies as a “star of the American road”. Therefore,
usage of porter five forces in this organization is describing
underneath:-
Texaco is serving almost in most of the countries due to
which their rivalry are also increases day by day as per development
in oil or gas industry. It means, company is facing a large competitive
environment in which overall company are facing a numerous of
issues due to emergence of several competitors.
Entrepreneurs or people of high income group are trying
to involve in a oil or gas industries because earnings are much more
higher in this sector as compare to others. Therefore, it may influence
the success or development of an association due to which analysis of
new entrants is indispensable.
Emerging companies are coming with numerous of ideas or
thoughts for gaining competitive advantage which act as a major
threat for existing firms.
Lack of consumer authority to bargain in this industry but
few consumers are trying but they get failed due to togetherness in
decision making process.
Suppliers are offering best possible products to their
business partners or competitors but chances of bargaining are depend
various external or internal factors. For example; current market rate,
pricing strategy, currency rate, consumer demand, inflation or
deflation and so on.
It has been observed that as per recent time period it is analysed that in
UK performance of selected firm is disappointing due to increment in tax
which creates a surrounding of intense competition with several
supermarkets. Basically, company is still trying to engaging in a large
projects in order to overcome their internal and external barriers which
may hamper the current positioning of an association. Along with this,
they need to focus on certain factors which aids in improving the current
scenario of an organization such as; pricing schemes, supply chain,
marketing factors, HR department and so on. However they are situated
in almost 2000 locations or more than this for gaining maximum revenue
as well as trying to established their positive image at marketplace.
CONCLUSION
From the above poster it has been summarised that oil and gas industry
is growing in a fastest way due to higher demand of distinct customers
as it aids various companies of this sector while acquiring revenue from
their investment. However, overall information is focussing on four
distinct organization in order to understand their current positioning by
determining several facts or figures.