BP's move into alternative energy will help it to position itself as a leader regardless of which direction the market decides to go. BP's move makes sense from many perspectives. It makes sense for a marketing perspective because it will help to improve BP's image to one that is more environmentally friendly and in line with current public consciousness. It will help it to make better use of natural resources from production to end use of all of its product lines.
One advantage that BP has over many of the other companies entering into the alternative energy field is that it has experience in providing the needs of mass consumers. It understands the technical difficulties of supplying energy to millions of people across the globe. The growth of the alternative energy industry will depend on research and development. There is a need to make panels that are more efficient and cost effective for the average consumer. This research and development is capital intensive, which makes it cost prohibitive for many. BP has the financial backing and resources to develop technological innovations that will meet the needs of the industry.
Many oil companies see the green movement as adversarial. They see it as all are none, an "us or them" situation. However, BP saw things differently and has decided that the solution to providing energy for tomorrow's needs is in the partnership that combines traditional petroleum...
The ability to see things differently is what allowed BP to become a leader in the petroleum industry. This same attitude will also allow it to become a leader in the alternative energy industry as well.
Works Cited
BP Solar International Inc. BP Solar has over 30 years experience in the solar industry: a
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BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures," BP. 2006. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342. Accessed October 29, 2006.
BP. "Making Energy More Sustainable - Sustainability Report 2005." www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/S/bp_sustainability_report_2.pdf.
Nussbaum, B. BP's Green
Brand Image Hit by Alaska Oil Spills. August 7, 2006. Business
A www.businessweek.com/innovate/NussbaumOnDesign/archives/2006/08/bps_green_brand.html http://www.businessweek.com/innovate/NussbaumOnDesign/archives/2006/08/bps_green_brand.html. Accessed October 29, 2006.
