Description
This is a presentation about BPCL strategy analysis.
Bharat Petroleum Corp.Ltd
Group B
1. Melwyn Furtado 2. Devendra Kunwer 3. Eric Lath 4. Sam Nambiar 5. Jitendra Sharma 6. Pravin Shetty 7. Sagar Naik 111 122 123 135 145 147 159
Road Map
?
?
? ?
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
NMIMS - Mktg - Prof. Palekar
2
25-Jan-13
Introduction
?
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.
NMIMS - Mktg - Prof. Palekar
3
?
?
?
?
?
25-Jan-13
VISION
GOAL
Most profitable down stream player in the country in the next five years.
25-Jan-13
NMIMS - Mktg - Prof. Palekar
4
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
?
25-Jan-13
NMIMS - Mktg - Prof. Palekar
5
Porter’s 5 Forces analysis
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
Rivalry among existing competitors
Reliance / Shell / IOC / HPCL
Barriers to Entry
•Huge investment •Volatile market •Land cost & acquiring at strategic location
Bargain Power of Buyers
•Price fixed by govt on socio economic interest of company •Huge competition in direct market
25-Jan-13
NMIMS - Mktg - Prof. Palekar
6
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 )
25-Jan-13
NMIMS - Mktg - Prof. Palekar
7
Insight to BPCL Strategy
Competitive Advantage
Pure for Sure Campaign ? Fleet card ? Petro card
?
ERP Integration ? Logistics (SCM) ? National reach ? Plant efficiency
?
25-Jan-13
NMIMS - Mktg - Prof. Palekar
8
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
25-Jan-13
NMIMS - Mktg - Prof. Palekar
9
ANSOFF’S GRID Product Present Market Present
Market Penetration Piped gas City gas Pune Indraprashtha Gas Product Development Speed Petrol
New
New
Market Development Lubricant sale in Sri Lanka
Diversification Bio Fuel
25-Jan-13
NMIMS - Mktg - Prof. Palekar
10
BCG Growth Market Share
Relative Market share High High Refining Distribution & petrochemicals Processing Gas sector LNG Lubricants Low
Market Growth
LPG Naphtha Bituminous product
Sulphur By product
Low
25-Jan-13
NMIMS - Mktg - Prof. Palekar
11
CSR Initiatives
?
Community Development
? ? ? ?
Balwadis for children as pre-school intervention. Vocational guidance & self sustenance Women's Developments Self Help group. Tree plantation Building Community Halls Medical Aids Grain Banks Water Harvesting & Bride Scholarship Education Adopted village
NMIMS - Mktg - Prof. Palekar
12
?
Infrastructure
? ? ? ? ?
?
Education
? ?
25-Jan-13
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!
?
25-Jan-13
NMIMS - Mktg - Prof. Palekar
13
THANK YOU
25-Jan-13
NMIMS - Mktg - Prof. Palekar
14
doc_931311990.ppt
This is a presentation about BPCL strategy analysis.
Bharat Petroleum Corp.Ltd
Group B
1. Melwyn Furtado 2. Devendra Kunwer 3. Eric Lath 4. Sam Nambiar 5. Jitendra Sharma 6. Pravin Shetty 7. Sagar Naik 111 122 123 135 145 147 159
Road Map
?
?
? ?
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
NMIMS - Mktg - Prof. Palekar
2
25-Jan-13
Introduction
?
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.
NMIMS - Mktg - Prof. Palekar
3
?
?
?
?
?
25-Jan-13
VISION
GOAL
Most profitable down stream player in the country in the next five years.
25-Jan-13
NMIMS - Mktg - Prof. Palekar
4
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
?
25-Jan-13
NMIMS - Mktg - Prof. Palekar
5
Porter’s 5 Forces analysis
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
Rivalry among existing competitors
Reliance / Shell / IOC / HPCL
Barriers to Entry
•Huge investment •Volatile market •Land cost & acquiring at strategic location
Bargain Power of Buyers
•Price fixed by govt on socio economic interest of company •Huge competition in direct market
25-Jan-13
NMIMS - Mktg - Prof. Palekar
6
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 )
25-Jan-13
NMIMS - Mktg - Prof. Palekar
7
Insight to BPCL Strategy
Competitive Advantage
Pure for Sure Campaign ? Fleet card ? Petro card
?
ERP Integration ? Logistics (SCM) ? National reach ? Plant efficiency
?
25-Jan-13
NMIMS - Mktg - Prof. Palekar
8
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
25-Jan-13
NMIMS - Mktg - Prof. Palekar
9
ANSOFF’S GRID Product Present Market Present
Market Penetration Piped gas City gas Pune Indraprashtha Gas Product Development Speed Petrol
New
New
Market Development Lubricant sale in Sri Lanka
Diversification Bio Fuel
25-Jan-13
NMIMS - Mktg - Prof. Palekar
10
BCG Growth Market Share
Relative Market share High High Refining Distribution & petrochemicals Processing Gas sector LNG Lubricants Low
Market Growth
LPG Naphtha Bituminous product
Sulphur By product
Low
25-Jan-13
NMIMS - Mktg - Prof. Palekar
11
CSR Initiatives
?
Community Development
? ? ? ?
Balwadis for children as pre-school intervention. Vocational guidance & self sustenance Women's Developments Self Help group. Tree plantation Building Community Halls Medical Aids Grain Banks Water Harvesting & Bride Scholarship Education Adopted village
NMIMS - Mktg - Prof. Palekar
12
?
Infrastructure
? ? ? ? ?
?
Education
? ?
25-Jan-13
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!
?
25-Jan-13
NMIMS - Mktg - Prof. Palekar
13
THANK YOU
25-Jan-13
NMIMS - Mktg - Prof. Palekar
14
doc_931311990.ppt