Porter's Five Forces Model Of Occidental Oil

Economist has analyzed the causes of decline in world oil prices. Typically, the price of oil is determined by demand and supply of the world market and forecast advance to invest in which level of demand depends on the level of economic activity and behavioral use of energy from humans. The oil price decline has a benefit for oil importers like China, India, Japan, Europe but unfortunately for oil exporters such as: Kuwait, Venezuela, Nigeria, and Iraq. Crude oil prices fell steadily in the past seems to be a result of two main factors being the levels of demand declining and a level of increased supplies (Economic, 2015)

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In 2015, international energy agency estimated the average quantity of demand of oil over the years is ninety million

These laws enforcement it makes the company have more expenditure and affect to the profit in operation of company as well (Ebsco, 2015).

Porter’s Five Forces model

Bargaining power of suppliers: moderate level

Occidental petroleum utilize strategy growth by vertical integration that including seeking and integration with conduct to diverse level of companies and its opportunity for the company to increase influence noteworthy on the supplier chain. Moreover, Occidental petroleum has develop capacity on the technology has high efficiency than before.

Competition among the existing players: high level

An industry of oil, the Occidental petroleum corporation has a major competitors is Total S A, Chevron, BP Olc, Exxon Mobil corporation and so on. The oil and gas industry has set up in the worldwide. The competition with these firms is high quality of brand and they utilize a wide range of strategies differently into their operations for create advantage on competition for their business. The firms has set up their brands that accepted across the globe and the most customer that is make oil and gas industry has a competition quite high.

Bargaining power of buyers: moderate