a.

STEEP Analysis

Factors Explanation Impact

Socio-cultural
Technological

Economic  Increase in number Positive

of automobiles sold
in the Philippines
 Increase in
automobiles’ price
because of
T.R.A.I.N.
Environmental  The demand for
green products is
high
Political-legal  There are legal
barriers
b. Porter’s Five Forces Analysis

Potential
development
of substitute
products

(Low)

Rivalry
Bargaining Bargaining
among
power of power of
Competing
Suppliers Consumers
Firms
(High) (Low)
(High)

Potential
entry of new
competitors

(Low)
Rivalry among Competing Firms

Phoenix Petroleum doesn’t only compete with known oil and gas companies, but also with the
small ones having the same kind of products to offer to the public.

Potential entry of New Competitors

It’s hard for new competitors to enter the market because of the huge capital requirement to
establish an oil company. Since there are already big oil companies established nationwide, it
would be hard for them to compete against the pioneers. The oil and gas prices are likely to
change in a very sudden or extreme way. There are national and international law restrictions
which can affect the new entrance of a company in the oil and gas industry.

Potential Development of Substitute Products

Some of the alternative sources to oil and gas for producing energy which is used for electricity,
transportation, heating, etc. are nuclear energy, coal, hydrogen, biofuels and other renewable
sources such as solar and wind energy. These alternative resources of energy can replace a high
amount of hydrocarbons used in the global energy mix according to their performance, quality
and price. This strategy requires a huge amount of investments in R&D and producing
procedures, so the possibility for substitutes to dominate the global energy mix is very small.

Bargaining Power of Suppliers

Almost all the companies in the oil and gas industry get their raw materials from numerous
suppliers. Theses suppliers are oil-rich countries, equipment & pipeline manufacturers, and oil-
field services. Because of the exploration, field development and production operations of
suppliers, they have power over the oil and gas industry. In parallel, oil companies, due to their
size and the volume they buy, they become more dependent to the suppliers.

Bargaining Power of Consumers

Since consumers have a lot of other oil and gas companies to choose from, the bargaining power
of consumers is high because they want the best offerings available by paying the minimum
price as possible.
 External Factor Evaluation Matrix

OPPORTUNITIES WEIGHT RATING WEIGHTED

SCORE
1. The government administration is promoting the .03 2 .06
country’s gas and oil potential.
2. The growth in the Philippine economy and industries will .06 3 .18
certainly result in increased demand for petroleum.
3. The government is investing in road construction, and .07 2 .14
the culture of transportation is strong.
4. The efficient and effective use of social networking site .08 4 .32
or internet to reach mass market.
5. Increase in demand of gasoline and diesel due to the .05 3 .15
raising number of vehicles.
6. Trend of Uber and Grab units .05 3 .15
7. Lower down payment required to purchase brand new .03 4 .12
car
8. Car companies consistently release new car models .06 1 .06
9. Lower pricing of oil products .03 3 .09
10. Smaller franchise fee requirement .04 2 .08
THREATS
1. DOE implemented the 10% requirement of ethanol in .03 1 .03
gasoline fuel, as mandated in the Biofuels Act of 2006.
2. Import terminal of Shell will put oil major at par with PNX .03 1 .03
in terms supply reliability and cost efficiency in Visayas
and Mindanao.
3. New technologies used by the competitors. .06 4 .24
4. Private vehicle owners would rather take public .04 3 .12
transportation due to heavy traffic.
5. PUV modernization program .07 4 .28
6. High-speed rail from Manila to Clark .05 3 .15
7. Oil supply shortage .05 4 .20
8. Higher excise tax under TRAIN law .06 2 .12
9. People become more conscious about the environment .04 2 .08
10. Launching of the electric vehicles .07 3 .21
 Competitive Profile Matrix (CPM)

Phoenix Seaoil PTT

Fuels Philippines
Factors Weig Rating Score Rating Score Rating Score
ht
Growth 0.17 4 0.68 2 0.34 3 0.51
Price 0.15 3 0.45 4 0.6 2 0.3
Competitiveness
Variety of 0.14 4 0.56 2 0.28 3 0.42
Product
Product Quality 0.13 4 0.52 2 0.26 3 0.39
Market Share 0.11 4 0.44 2 0.22 3 0.33
Geographical 0.08 3 0.24 2 0.16 4 0.32
Coverage
Financial 0.07 4 0.28 2 0.14 3 0.21
Position
Mergers and 0.06 3 0.18 2 0.12 4 0.24
Acquisition
Customer 0.05 3 0.15 2 0.1 4 0.2
Loyalty
Advertisement 0.04 4 0.16 2 0.08 3 0.12
Total 3.66 2.3 3.04