Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 25 pages
Data source: Published sources
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https://casecent.re/p/20031
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Abstract
In 2004, Bharat Petroleum Corporation Ltd (BPCL) was one of the leading state-controlled oil retailing companies in India. The case talks about the evolution of the industry, its structure, its changing regulatory environment, the resulting competitive scenario and its implication for BPCL. With the partial liberalisation of the industry and the entry of private players, state-owned downstream marketers were forced to focus on marketing in order to protect their customer base. The case elaborates on the strengths of BPCL as an oil marketer over the years, and the initiatives taken by the company in the wake of these changes. The case enumerates the challenges faced by it BPCL. The case also talks about BPCL''s foray into the upstream sector of exploration and production consequent to the deregulation, and the crude supply scenario. Specifically the case offers scope for discussion on the following points: (1) the growth motives of companies in a regulated and a deregulated environment; (2) oil industry economics and the pros and cons of vertical integration in an industry such as oil and gas; (3) analyse the changes in the oil industry structure with deregulation and how it affects new and established companies; (4) SWOT (strengths, weaknesses, opportunities and threats) analysis of BPCL; and (5) analyse the rationale behind BPCL''s foray into the exploration and production sector.
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Abstract
In 2004, Bharat Petroleum Corporation Ltd (BPCL) was one of the leading state-controlled oil retailing companies in India. The case talks about the evolution of the industry, its structure, its changing regulatory environment, the resulting competitive scenario and its implication for BPCL. With the partial liberalisation of the industry and the entry of private players, state-owned downstream marketers were forced to focus on marketing in order to protect their customer base. The case elaborates on the strengths of BPCL as an oil marketer over the years, and the initiatives taken by the company in the wake of these changes. The case enumerates the challenges faced by it BPCL. The case also talks about BPCL''s foray into the upstream sector of exploration and production consequent to the deregulation, and the crude supply scenario. Specifically the case offers scope for discussion on the following points: (1) the growth motives of companies in a regulated and a deregulated environment; (2) oil industry economics and the pros and cons of vertical integration in an industry such as oil and gas; (3) analyse the changes in the oil industry structure with deregulation and how it affects new and established companies; (4) SWOT (strengths, weaknesses, opportunities and threats) analysis of BPCL; and (5) analyse the rationale behind BPCL''s foray into the exploration and production sector.