British Petroleum's Marketing Strategy in a Changing Business Environment

BP 's Marketing Strategy in Changing Business Environment

1. Introduction

Multinational corporations operating in complex and diverse political, economic, social and cultural environments have to improve, adjust and develop their marketing strategies on a regular basis (Bamberg, 2009:46). Changing environmental factors create new conditions for their operating, which often require considerable and serious changes in strategic decision-making and positioning of companies. Inflexible and rigid firms will cease to be competitive in the market every time changes occur (Fight, 2006:85). The aim of the present report is to identify the past and present changes in marketing strategy of British Petroleum, which have occurred under the pressure of environmental factors. It is evaluated whether these changes were necessary, and future strategic options for British Petroleum are recommended.

2. Background

British Petroleum (BP) is a multi-national gas and oil company located in the United Kingdom. Taking into consideration the size of revenues, BP proves to be the third largest energy company in the world. It is reported that its revenue was equal to as much as $308 billion in 2010 (BP, 2010:18). Working in the field of the gas and oil industry, the corporation carries out a wide range of operations, namely exploration, refining, production, trading, power generation, renewable energy production, etc. BP is presented in more than 80 countries all over the world and employs more than 80,000 workers. The company was founded in 1909 as the Anglo-Persian Oil Company, but only in 1954, it was known as the British Petroleum Company. 1998 was marked by the merger with Amoco (BP, 2011:1). Operating in turbulent and dynamic industrial sector, BP has always had to adequately react to the environmental changes and adjust their marketing strategy (Bamberg, 2009:49).

3. BP in Dynamic and Changing Environment

Taking into account that this report analyses

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