This report believes that BP’ s positioning in the market which is shown in its choice of generic strategy is working strongly for its benefit. Recognizing that consumers are increasingly basing their choice of purchases by the corporate social responsibility of business organizations, BP has been right in choosing to position itself as a “ green company. ” However, this paper also recognizes the fact that BP has not been so efficient in acting what it is communicating to the public. This paper has three recommendations for BP. 1. Strengthen its position in the market.
BP should be able to guard its reputation as a “ green” and “ humanitarian” business organization. With this, BP should further spend money on resolving the environmental and human rights issues that it faces. It will also be good if the company can fund research on how to minimize the harm and pollution caused by fuel. With the pressing concern for global warming, BP should cooperate with other organizations that are investigating the likely impact of global warming and how to reduce these hazards. These actions are seen to strengthen the company’ s position in the industry as well as gain the public’ s trust which offset their associated costs. 2.
Focus on alternative fuels. BP should also take advantage of the boom in alternative fuels like hydrogen, water and solar. The opportunity posted by this market is huge as consumers are expected to favor cleaner, safer, and cheaper fuel for their needs. Thus, being at the forefront of research and distribution of these products can be very profitable for BP. 3. Focus on cost control. With the intense competition in the industry and the declining costs of fuel in the market, it is expected that companies will be waging price wars.
In order to ward off and prepare for the competition, BP should seek to enhance its efficiency as well as manage its costs. With this, the company is prepared for any threat of price wars. This also enables the business organization to continue to add value to its shareholders and facilitates easy access to financing.
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