BPCL Strategy Analysis

Bharat Petroleum Corp.Ltd

Group B

1. Melwyn Furtado 1112. Devendra Kunwer 122 3. Eric Lath 1234. Sam Nambiar 135 5. Jitendra Sharma145 6. Pravin Shetty 1477. Sagar Naik 159

Apr 18, 2023 NMIMS - Mktg - Prof. Palekar 2

Introduction Market Environment Porters 5 Force Model Insight to Strategy

Operational Competitive

SWOT Analysis Ansoff’s Product / Market Matrix BCG Growth Market Share CSR Initiatives Conclusion

Road Map


BPCL is one of India's largest PSU companies.

Involved in the refining and retailing of petroleum products.

Single digit Indian representative in the Fortune 500 & Forbes 2000 listings (“MNC in PSU garb”).

Pioneer in Indian Petroleum Industry. (Pure for Sure campaign, Petro card, Fleet card etc.)

Diverse range of products (Petrochemicals and solvents to aircraft fuel and speciality lubricants)

Fuel supplied directly to hundreds of industries, and several international and domestic airlines.

Introduction


VISION

GOALMost profitable down stream player in the country in the next five years.


BPCL - Market Environment Deregularisation post 2000 leading to Open Mkt BPCL Production-Sales deficit (9.7 MMT) Presence only in western region Poor logistics High operational cost Production capacity Emission norms


Rivalry among existing competitors

Reliance / Shell / IOC / HPCL

Bargain Power of Buyers•Price fixed by govt on socio economic interest of company •Huge competition in direct market

Threat of Substitute product Alternative fuels / energy like bio fuel

Bargain Power of Suppliers

•OPEC Country •Govt interference •Diplomatic Interest of country •Bombay high ONGC

Barriers to Entry•Huge investment •Volatile market•Land cost & acquiring at strategic location

Porter’s 5 Forces analysis


Insight to BPCL Strategy

Operational efficiency Capacity expansion Plant modernization Mergers – Kochi Refinery Major stake in Numaligarh Refinery Ltd Bharat Oman Refinery Ltd – Bina Pipeline: Bombay to Delhi 6 SBU (Refinery, Retail, Industrial & Commercial, Lubes, LPG & Aviation )


Insight to BPCL Strategy

Competitive Advantage

Pure for Sure Campaign Fleet card Petro card

ERP Integration Logistics (SCM) National reach Plant efficiency


SWOT ANALYSIS

Strength

Brand Name Refining Capacity Retail Network SAP Integration R&D support Best in SCM Cost advantage

Weakness

High cost of Crude oil prices Govt. control on pricing Subsidized product Black marketing Bureaucratic involvement on strategic

decision.

Opportunity

Demand for Energy Avenues outside India City gas distribution (Joint venture with

GAIL) Non conventional Energy like bio diesel Major stake in petronet LNG insuring the gas

reserve

Threats

Volatile price of Crude oil & finished product Impact of financial health Openings for global players Competitors faster growing rate


ANSOFF’S GRID

Product

Market

Present New

Present

Market Penetration

Piped gas

City gas Pune

Indraprashtha Gas

Product Development

Speed Petrol

New

Market Development

Lubricant sale in Sri Lanka

Diversification

Bio Fuel


BCG Growth Market Share

Refining

Distribution & petrochemicals

Processing

Gas sector

LNG

Lubricants

LPG

Naphtha

Bituminous product

Sulphur

By product

Relative Market share

High Low

High

Market Growth

Low


CSR Initiatives Community Development

Balwadis for children as pre-school intervention. Vocational guidance & self sustenance Women's Developments Self Help group.

Infrastructure Tree plantation Building Community Halls Medical Aids Grain Banks Water Harvesting & Bride

Education Scholarship Education Adopted village


Conclusion

BPCL is a organization that has redefined the Petroleum & Refining business by trading a unique path

The Marketing Company of the year’ Award is in recognition of BPC’s excellent performance in increasing volumes of products marketed and enhancing the customer base during 2006-07, while adhering to the stringent norms of health, safety and environment protection!


THANK YOU

Documents

BPCL Strategy Analysis