The customers had a high bargaining power in regard to petroleum products. The buyers of BP products are always price sensitive hence the company has always ensured the prices are relative low to maintain them.
The bargaining power of the supplier is low in regard to BP Group Plc since the suppliers of petroleum products are few in number. The bargaining power of the supplier is also low because there is availability of suitable substitute products similar to those supplied by BP. There are other petroleum company that produces petroleum products similar to those produced by BP thereby making the bargaining power of the supplier very low. 1
The bargaining power of the buyers of petroleum products is quite higher is high since the buyers are many in number. The buyers purchase a large potion of an industry's total output and a significant potion of a supplier's annual revenue. There is a clear revelation that revenues of the company have been increasing since 2000 since the company's turnover in 2000 was less that 100 billion and in year 2005 they were over 150 billions. 2
The company has significant strengths in regard to brand name. ...