Porter's Five Forces I based myself on the argument that the potential of an organization is determined by the structure of the industry and the market in which it operates and that companies operating where competition is limited and likely to be more profitable; an industry with strong competition would not be profitable. BP operates in the oil industry which is very broad, from exploration to refining and distribution, and there are many companies active in the oil industry. However, the number of major oil companies that can explore and extract oil deposits is very limited. BP has three main competitors; Chevron, Shell and Exxon. Threats of new entries. The threat of entry into the oil and gas industry is low due to the fact that there is a high barrier of entry into the industry. Most of the oil companies including BP invest huge capital during the initial startup of their business as it is necessary to purchase and build equipment for oil refineries, these companies have also inherited many rules and regulations that they have to comply with and what limits where, when and how the extraction takes place,...