Vivienne Cox at BP Alternative Energy Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Vivienne Cox at BP Alternative Energy Case Solution

PROBLEM STATEMENT:

The company is deciding to take the diversification strategy in order to sustain in the market. The diversification plan is totally an unrelated diversification which is converse to its existing business and has put the officials of the company in grave analysis of the market, and consumer behavior trends. The company also has to decide over whether to pursue the diversification and take a leap of faith and be the first mover in the Organic fuel industry and will this move make them the shining stars in the industry or will ruin their company image.

INTERNAL ANALYSIS:

BUSINESS STRAEGY OF BP

According to the theories the business strategy encompasses the overall business theme, its competitive business theme, the way it operates in market place, the competitive advantage it has over the competition and its positioning strategies. Like differentiation, cost leadership, diversification, product enhancement and market penetration. The business strategy of BP is based on differentiation which is the reason of its sustainability in changing market trends over 70 countries. The company is currently focusing to enter into new market by adopting diversification strategy and changing the whole game in the market of petroleum. The co-operate strategy, deals with the area of company that focuses on profitability. The company has decided to jump into totally new venue which is natural gas fuel , energy and power derived from wind and solar in order to sustain in the market while performing its cooperate social responsibility .The company has analyzed the shift in the behaviors of the buyer –(who are switching towards more organic products, like to eat they are shifting to organic food and while driving they want pollution free fuel ) which is a big market of opportunities for the subsidiary of BP –“ ALTERNATIVE ENERGY”. The company seeks AE as a portfolio that will guarantee the presence of the company in long Run and which will generate higher profits in later years as people get adapted with the new trend of “save environment”

Furthermore, the company has used the marketing strategy of linking climate changes with the environmental changes. To make AE a success, company hit the target audience by enlightening them about the causes of climatic changes which is pollution and giving them a solution AE.

SWOT ANALYSIS

Strengths

The strengths of BP will diffuse to be the strengths of Alternative Energy. As the impact of the public image of the mother company adheres to the image of its SBU’s. AE has following strengths over its competition:

The brand image of BP is very acceptable in the market which will help AE to become acceptable by the consumers.
First mover advantage –the company has stepped into the blue occasion strategy by launching a business that is environmental friendly. The service at current time has not been given by any of the BP competition in fact they are focusing in faster consumption of energy and fossil fuels than looking for alternative methods.
Changing trend-the whole world is encountering “climatic changes” due to green house effect. The meteorologist and environment specialist are focusing and emphasizing on the use of environment friendly product. So AE has a big market around the globe to capture and serve.
The latest technology of renewable will prove to be consumption saving which will help to fulfill the future demand of fuel.

Weakness

The company has recently encountered a deep water spill in Mexico which has hurt the public image of the company and thus its market share as after the spill many countries put a ban on BP and raised the trade safety barriers. The business setup of AE will be a challenge for the company due to its bad public image in golf of Mexico......................

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