British Petroleum is a company, which focuses mainly on petroleum, but has some interest in alternative energy. It is one of the world largest oil and gas companies, which serves over 13 million consumers in more than 100 countries. The market of alternative energy is not as well developed, nor as profitable as oil, but it is a good future investment with the recently raising environmental concerns. BP recognized this on time and entered the solar market in the year of 1973.( History of BP Solar ) Formed in 1908, The British Petroleum Company was originally called The Anglo-Persian Oil Company. The current name was given in 1954. BP adopted a re-positioning strategy in 1997 and the group chief executive, Lord John Browne, addressed the threat of global warming. Even though the oil industry does not have a good reputation in taking responsibility, BP was put first on the list of Fortune Magazine Global 100 Companies on Corporate Strategy. 5.2. Threat of new entrants.
Strong. The threat of new entrants in the oil industry is strong. BP is a market leader, but the strong growth of the industry, combined with the low costs and easy access to buyers are tempting for new comers For the solar industry it is different for every geographical region. U.S. There are a lot of small companies in the US Market, but few big ones. Currently this market is unprofitable, because of the lack of governmental enthusiasm and there are not many new companies, which are willing to go into that industry. BP has a good base for the US and it is likely for it to become the local market leader with weak treat of new entrants. Germany. Government in Germany is fully supporting the solar industry and has accepted the Renewable Energy Act (EEG), which guarantees large paybacks to users of solar technology. Germany is one of the biggest innovators in Europe and it is attractive for new entrants. Nevertheless, the big players in the market are just starting to emerge and BP...
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