The oil industry is one of the most needed resource in today’s society. The United States Oil and Gas Report states that “3 percent of the world’s gas is located in the United States. It produces around 20 percent and consumes 26 percent” (United States, 2014). Many rely on the oil in order to function everyday. There are not many people trying to find ways to deter people away from oil and gas causing the oil industry have a competitive advantage.
Competitive Advantage A SWOT analysis is a “strategic analysis of a firm’s internal strengths, weaknesses, opportunities, and threats in the environment “(Peng, 2009). BP was one of the largest oil and gas company in the world. The strength of company “robust research and development capabilities,
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It also stated that bribery among foreign countries which played a role in the rating. Even with the Foreign Corrupt Practice Act that bans bribery, many officials finds ways around the law. (Peng, 2009).
Porter’s Diamond Model Porter’s Diamond of Model shows how important the customer’s demand for oil and gas industry. Because of rivalry, the United States are not able to have the competitive advantage in the market. But, the many people that are in need for the oil for public transportation rely heavily on the resource. Regardless of how much the price of oil is, people do not have a choice but to purchase it. It is something many can not do without.
Hofstede's Dimensions of Culture Hofstede's notion of collectivism resembles ethics. Collectivism states “the perspective that the identify of an individual is most fundamentally based on the identify of his or her collective group (Peng, 2009). Prices are different depending on where one is located. Companies choose when to raise or lower the prices based on location, time of year, and the grade of gas that have. Companies try to do whatever they can do make a profit. During Hurricane Katrina in 2005, many oil and gas companies decided to raise the prices to outrageous