Video Case Study: Bp

Video Case Study: BP

The situation (SWOT) analysis plays an important role, as the first step in the planning phase of the strategic marketing process. By using the SWOT analysis, a company can reach its goal of critical strategy-related factors, which will show its strengths, weaknesses, opportunities and threats. As one of the largest producers and marketers of petroleum products in the world, BP uses the SWOT in its business practice and receives considerable outcome.

On economic globalization, there is more and more demand of oil from not only developed countries but also developing countries. Furthermore, global warming and other environmental problems raise importance of environmental protection to a higher level than before, which requires companies pay more attention to the environment while seeking profits. BP made every effort to any opportunities and avoiding threats in the new economic generation.

Opportunities

The "O" component means opportunities. BP realizes that it needs to apply new strategies in the new situation. The "SPUs", acquisitions, new petroleum products and brands can reflect this point. Furthermore, BP found that eco-friendly is a crucial aspect in the future, so it attempts a new retail model as Helios House for its opportunity strategies. Helios House is not only a gas station, it absorbs the advantage of BP's successful convenience store called am/pm, and makes it more environment focused. The material of construction and facility in Helios House are all built on these standards. Helios House also provides green services to customers. So the U.S Green Building Council certified the Helios House as the first green gas station. This successful model indicates that BP clutches the main trend of the new market. Energy companies should alter their strategy to more green and diverse direction.

In the next three years, due to Helios House has developed a new definition against traditional gas station, which can provide gas services and convenience services in environmental friendly method, BP can build more and more Helios Houses in order to update the traditional stations. Through Helios successful promotion, BP can gain more opportunities and profits.

Threats

The "T" component means threats. Although each business decision contains different threats, the decision makers need to avoid the threats or reduce risks as much as possible. After sufficient market research, BP started the Helios House to transform the gasoline retailing. At first, BP built Helios House to test the market and gain outstanding reputation and outcome. Now Helios House