Bp Swot Analysis

Swot analysis 

Strength

according to (BP, 2015) one of its biggest strengths is its cash flow, and tis great dividend policy, they affirm that even though they had to contribute monetary with the oil disaster in the Gulf of Mexico, they had enough profit to carry any financial penalty and invest in new exploration technology.

Opportunities

Nowadays there are alternatives of renewable energy which will low the CO2 emissions that Hydrocarbon fuel produces , these alternatives sources such as solar panel, wind hydrogen and combined cycle gas turbine, are taking a strong interest at BP, this new source of energy are new markets with a potential growth, BP chief executive says that there will be an investment in all the mentioned sources and this investment will come to a total of $1.8bn in the next three years, this definitely will create a huge opportunity for BP by entering in this market. (BP doubles renewables funding", 2006)

Weaknesses

Since 1999 crude and oil price has been high and has maintained a relatively stable price (Meyler, A. 2009) however there is current pressure due to the instability in the oil price that has decrease and consequently has affected BP sells. BP is trying to invest in new source of energy, it is a totally new market for them therefore they will be struggling to adapt to this new market.

Threats

New sources of energy such as wind energy will have a major impact at BP business strategy (Mohamadian, 2009), there are huge investment in new sources of energy that are eco-friendly, BP in this current moment its biggest probability market is fossil fuel consumption, therefore BP is facing a major threat, BP in order to survive will have to invest in new technology and new resources development.   

(Polák, M. 2007)