British Petroleum Plc IT Analysis Assignment Example | Topics and Well Written Essays - 1000 words

British Petroleum Plc IT Analysis - Assignment Example The adaptation of cost leadership and differentiation strategies will help the company reach the next level through increased business efficiency, improved data processing and storage among other benefits. The two options go hand-in-hand during their implementation but, BP should consider implementing the cost leadership strategy first then implement differentiation strategy later. Cost leadership strategy enables a firm gain competitive advantage through reduction of economic costs below the competitors’ cost. On the other hand, differentiation strategy enables an organization to shift product development on the bases of cost of marketing of goods and services (Conklin & Sorrell 2010). By first implementing the differentiation strategy, BP will sand a better chance of implementing differentiation strategy. BP’s main objective is to become the leading oil and gas producing industry globally by adaptation of them modern I.T. services that assists in improving business en vironment. The BP I.T processes will be achieved through various strategies set aside by the company management that include value added preposition, target markets, cost factors, revenue drivers and revenue streams. All these strategies focus on the company becoming the cost leader in the market, which requires an implementation of the cost leadership strategic option. ... BP is a large industry with an extremely high volume of production of oil and gas. In addition, the company has specialized machines and proficient workforce that enable provide high quality products and services. The high volume of production places BP in a better position of lowering costs per unit production the implementation of cost leadership strategy easier and fast. In addition, the company can reduce its overhead costs through spreading different costs to other areas like advertisement. Moreover, by implementing this strategy BP will hold the strongest position in the industry and will be able to set floor prices for other companies to follow. The second strategy should follow cost leadership is differentiation option. After ensuring the company’s cost security, BP can come up with differentiation strategy that will increase the value of her products and services relative to the perceived value of other companies. BP will implement differentiation strategy by using fe atures that will make customers prefer the company products and services to those offered by competitors. The focus on high revenue and cost margins places BP in a better position to achieve and perfect economic performance. With I.T in place and low cost of products and services, customers will be more attracted to BP products and services because they are more valuable and have differentiation advantage. Question4 Write a proposal to BP on I.T integration to reducing cost Summary BP is the leading oil and gas production company and serves many customers globally. BP wishes to integrate I.T. systems in her operations in order to improve the overall efficiency in terms of customers’ services and products production. By establishing the