Value Chain Analysis of BP

BP (British Petroleum) is an oil and gas British multinational corporation. BP started as a subsidiary company of the Burmah Oil Company in 1909 to exploit the oil discoveries in Iran and it adopted the name British Petroleum in 1954. Today, we’ll discuss the value chain analysis of BP (British Petroleum) supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Substitutes of BP (British Petroleum)

  • Mol Group
  • Eni
  • Total Energies
  • Chevron
  • Valero Energy Corp
  • Exxon Mobil
  • Polski Koncern
  • DCP Midstream
  • Saudi Aramco

The Value chain analysis of BP (British Petroleum) supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of (British Petroleum) BP value chain analysis company example as follows;

Value Chain Analysis of BP

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of BP (British Petroleum) supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of BP

Some of the five main primary activities in the value chain analysis of BP (British Petroleum) supply chain analysis are as follows;

Inbound Logistics of BP

I-Large Supplier Network

BP (British Petroleum) deals with approximately 40,000 diverse range of global suppliers in over 70 countries across the globe. The company has established very good and effective relationships with its suppliers and vendors. It helps the company to ensure the smooth supply of raw materials and supplies and reduces the risk factor.

II-Sustainable Sustainable

BP (British Petroleum) is highly careful and cautious about environmental sustainability, even though being an energy company. The company closely collaborates with its suppliers and brings them on the same page through its sustainable suppliers’ program. However, the objective of the petroleum company is to decrease greenhouse gas emissions and reduce its reliance on them.

  • Achieving net zero carbon emission by 2050
  • Improving the lives of people
  • Caring for the environment

III-Guidelines & Standards for Suppliers

BP (British Petroleum) has set clear standards, regulations, and guidelines for its suppliers that the company expects from them. The shared commitment and core focused areas of the company are as follows;

  • Cyber security, data privacy, and intellectual property rights
  • No harassment and no discrimination
  • Proper human rights and no modern slavery
  • Environmental sustainability
  • Regulatory compliance and no financial crime
  • Safety, health, and environment
  • Compliance and ethics

Outbound Logistics of BP

I-Regional Distributors

BP (British Petroleum) employs various regional independent distribution companies to distribute its fuel supplies across the globe. The company’s auditing department makes sure that the distributors are honest, smart, and the right person for the job. They would timely distribute the fuel truck to the required destinations.

II-Off-Road Usage

Along with supplying fuel for transportation purposes to the transporters; BP (British Petroleum) offers fuel to off-road users and customers. They may belong to agriculture, government, utilities, road transport, rail, and mining sectors.

Operations of BP

I-Productions & Operations

Production and operations are the core of the company’s existence in the petroleum and energy industry. It starts with sourcing coal and hydrocarbons from various regions and countries across the world. However, the complex part is building the infrastructure for drilling the ground, boring, network of pipelines, oil rig fields in the ocean, and refineries for purifying the coal and extracting all the impurities.

II-Solar & Wind Energy Operations

Along with hydrocarbon-based energy, BP (British Petroleum) is also developing the infrastructure of solar and wind energy farms for the development of clean energy. In fact, the company is investing a significant amount of capital resources to show its commitment to achieving net zero carbon emissions.

  • 16 solar farms in 8 states
  • 1.6 GW net solar energy generating capacity

Marketing & Sales of BP

BP (British Petroleum) employs various traditional and digital media channels for the promotion of its energy products and brand name. But the energy company hasn’t been aggressive and proactive about its marketing, advertisement, and promotional campaigns just like other consumer goods manufacturing brands. Often, the company performs marketing and promotion through gas and petrol stations for retailing and connecting with the end consumers.

Services of BP

I-Quality Supply & Service

BP (British Petroleum) offers top-quality fuel and efficient service to transporters and off-road users. The company’s customers may expect the following from the company;

  • Confident fuel supply
  • Safe operations
  • Dedicated customer support
  • Invoice solution and innovative order
  • Fuel and engineering technology expertise
  • Quality fuel products
  • Managing logistics and delivery processes for customers

Supporting Activities of BP

Some of the main supporting activities in the value chain analysis of BP (British Petroleum) supply chain analysis are as follows;

Infrastructure of BP

BP (British Petroleum) has established a strong infrastructure in various areas; oil rigs, pipelines, refineries, drilling equipment and machinery, research and development, and technology. The solid on-ground infrastructure along with the corporate infrastructure helps the energy company to smoothly run its operations and timely deliver the fuel to the end consumers.


BP (British Petroleum) has employed approximately 70,000 employees to manage its global operation. The human resource management department plays in sourcing and recruiting talented engineers; and mechanical experts, conducting training and development programs; and creating and promoting workplace diversity. However, the company offers equal opportunity for all regardless of any discrimination.

Technological Development of BP

According to an estimate, BP (British Petroleum) invests approximately 330 million USD in research and development. The company has built applied sciences research facilities in 13 sites across the world. In fact, the energy brand partners with other researchers in the industry to come up with tech innovations to reduce the carbon emission rate.

Along with research and development facilities, BP (British Petroleum) invests a significant amount of resources in digital technology and cyber security. The company has set up a team of digital tech experts to protect its system, and privacy data, and connect with the customers worldwide.

Procurement of BP

BP (British Petroleum) has a clear position and standing on ethical and responsible sourcing of coal and hydrocarbons for fuel. In fact, the energy company has set clear regulations for its suppliers to comply with human rights practices and globally recognized standards.

Conclusion: BP Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of BP (British Petroleum); we have realized that BP (British Petroleum) is the world’s leading oil and gas company. If you are learning about the (British Petroleum) BP value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.

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