Firms need to understand the environment they can be operating directly into develop their competences and improve their competitive advantage and to understand their proper options. This newspaper posits to evaluate the strategic options available to the oil company BP using Ansoff Matrix.
BP Engine oil Company is the leading provider and trader of energy on an international context. The business contributes to a crucial role to make sure the complex resource string of energy operates in a manner that is useful as well as effective over the whole world. Recently, the company has strived to gather the supply, optimization of the products that movement in and also from the assets of the company, and the activities associated with risk management in to one single function. This includes the supply as well as the trading activities that encompass the crude olive oil alongside the essential oil products, the natural gas, chemicals, power, money as well as shipping thus building a clear distinction between the company and its own competitors in concern of the structure as well as the size of the organization
The application of Ansoff Development matrix in oil company BP is used for the purpose of making decisions about the merchandise in addition to the growth strategy. It is predicated on the advice that for the development of business at petrol company BP, has to market either "new or the existing products in new or existing markets".
The matrix provides end result of some expansion strategies which may have been suggested that are responsible for setting the most appropriate way for the strategy of the business enterprise. The strategies include the following:
This entails a specific type of a rise strategy in which particular case the company targets the sales of existing products in to the already existing market. The aim of market penetration in oil company BP includes the next:
The maintenance as well as a rise in market talk about of the merchandise that currently exist in the business. This target is achieved through the blend of the competitive strategies of charges, sales promotion, advertising as well as personal selling
Securing the development markets dominance
Mature market restructuring through program of aggressive campaigns of promotion that are planned at eliminating competition. That is propped up by request of strategies of rates which are designed in a manner that the market is made to be unattractive to the challengers.
To create a higher level of use by the customers who already are present. This is achieved through the intro of techniques of loyalty which strategy deals with "business as normal" strategy. The concentration of the business is the marketplace together with products that are well known to the business. The knowledge of the clients alongside the competitors plays an extremely vital role and for that reason less investment in terms of general market trends is a need (Chisnall, 1995).
Market development is utilized to imply to a technique of growth in which case engine oil company BP attempts to sell the products that already can be found in new markets. The achievement of the strategy is dependant on the adoption of different ways namely:
Exploration of new geographical marketplaces such as exporting of the products of the business to new countries
Establishment of new sizes of products
Establishment of new programs of distribution
Adoption of new plans of pricing for the purpose of getting divergent customers in an attempt of creating new segments of the marketplace.
The BP Company has strived to increase the capacity of development theough the improvement of its rig tools as well as the level of technology coupled with expansions to other countries.
Product development in petrol company BP is utilized as a rise strategy that aims at the advantages of services into the market that already can be found. The company looks in to producing new competencies coupled with the development of improved products that are appealing to the already existing markets. The petrol company BP employs exploration as well as production segment in its engagement in looking for the underdeveloped reservoirs of essential oil as well as gas, expanding these reservoirs coupled with the productions as well as transportation of gas together with olive oil from wells that are developed. The upstream activities undertaken in petrol company BP incorporate exploring as well as extracting the crude oil alongside the gas from wells in diverse countries. To achieve the status of such experts in the market on a global scale, the company has massively invested in two important areas aiming at improvement of these products. These include the human learning resource and it. The investment in both of these important areas of the business has greatly added to the efficiency of development to gain a competitive edge on the market (Chisnall, 1995).
Diversification in essential oil company BP is a rise strategy coping with the marketing of new products in completely new markets and the company faces a lot of challenges in the process of diversification because of insufficient sufficient experience along the way of reaching diversification. Oil Company BP therefore requires coming up with ideas of prospects and examining the potential dangers that are associated with the executing. The strategy taken in olive oil company BP includes the forming of joint ventures in the countries coping with the development and marketing of oils as well as bio-fuels aiming at the improvement of the creation capacity in conjunction with gaining an access in to the non-traditional markets coping with energy. The company has also initiated an unbiased business that specifically deals with alternative renewable energy varieties that are called the BP Substitute (Ansoff, 2007).
An important indicate note with respect to diversification is the fact that in the event it is unrelated then it can result in some synergy with the original company business. That is subsequently associated with a risk for the reason that the detailed knowledge of the most essential success factors may cause some important limitations to the business. It really is however important to appreciate a fast rate of expansion in the Engine oil Company BP is attributed to the adoption of diversification.