Texaco. Perfect competition

Texaco is the name of an American oil retail brand. Its flagship product is its fuel. Below is a list of their history when they began and came to the Irish market. Texaco is one of the world's largest oil companies, with exploratory, manufacturing, and marketing operations across the globe. Its primary petroleum-based products include automotive gasoline and oils, as well as aviation and heating fuels.

1902| The Texas Co (Texas) incorporated in the United States. The company was founded by Joseph S Cullinan who was of Irish extraction.| | 1924| Texaco comes to Ireland as the Galena-Signal Oil Company (of Ireland) Limited.| | 1926| The Texas Co (Texas) becomes The Texas Corp on 26th August in Delaware, United States of America.| | 1929| Galena-Signal oil Company (of Ireland) Limited changes to become The Texas Company (of Ireland) Limited.| | 1939| Government sponsored Combined Delivery Scheme established to ensure economic distribution during World War II.| | 1941| The Texas Corp changes its name on 1st November to Texaco Inc.| | 1949| Independent distribution resumed after World War II.| | 1951| The Texas Company (of Ireland) Limited becomes Caltex (Ireland) Limited. Solus trading introduced into retail gasoline market. Companies could now sign up a service station solely to their own products.| |

1967| Company name changed to Texaco (Ireland) Limited.| | 1972| Texaco (Ireland) Limited move to new Head Office at Ballsbridge, Dublin 4.| | 1978| Texaco becomes involved for first time in off-shore Ireland exploration. Texaco introduces its first self-service location.| | 1979| 25th Anniversary of National Children's Art Competition sponsored by Texaco. 21st Anniversary of Texaco Sportstar Awards.| | 1983| Texaco introduces its new service station image to Europe at Portmarnock.| | 1988| Introduction of unleaded fuels.| | 1993| Texaco (Ireland) Limited achieves the Q Mark. Texaco joins Super Club.| | 1994| Texaco (Ireland) Limited receives ISO accreditation. Texaco introduces Clean System 3 Petrol’s.| | 1996| Texaco (Ireland) Limited is first oil company with an Internet site.| | 1997| Texaco (Ireland) Limited launches another first in the Irish market - a free Fuel Supplier Warranty.| | 1999| Texaco celebrates 75 years in Ireland.| | 2000| Texaco are the first Oil Company to introduce facilities to pay at the pump with your credit card.| | 2001| October 9, 2001 Texaco & Chevron merged to form ChevronTexaco Corp.| | 2004| The Texaco Children’s Art Competition celebrates its 50th anniversary.| | 2004| Four award winning paintings from the 50th Texaco Children’s Art Competition were selected by An Post and reproduced as postage stamps to mark the 50th anniversary of the Competitor.| |

2006| Texaco (Ireland) Limited launch Techron, a new fuel additive.| | 2006| Texaco (Ireland) Limited changes its name to Chevron (Ireland) Limited.| | 2011| August 1, 2011 Chevron (Ireland) Limited is purchased by Valero Energy Corporation.| | 2011| Aug 26, 2011 Chevron (Ireland) Limited changes its name to Valero Energy (Ireland) Limited.| | 2012| Valero Energy (Ireland) Limited announce the cessation of their sponsorship of the Texaco Sport stars Awards.| | |

Swot analysis is defined as a method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture. A SWOT analysis can be carried out for a product, place or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

* Internal factors – The strengths and weaknesses internal to the organization.

* External factors – The opportunities and threats presented by the external environment to the organization.

Strengths Strengths are the qualities in a business which enable it to prosper. They could include any amount of factors from financial resources, motivated work staff or business location just to list a few. Strengths are in affect resources for the business to succeed. * Potential customers worldwide

* Increase in market share * Brand recognition * Demand will always be high

Weaknesses Weaknesses are pretty the opposite of strengths the characteristics that make the business be at a disadvantage examples high debt, high employee turnover or business location far from customer base.

* Oil will eventually run out

* Competitors lowering prices * A lot of competing stations * Oil strikes * Increased prices

Opportunities An opportunity is any feature of the external environment which creates positive potential for the business to achieve its objectives. * Expansion into other countries and forming partnerships * Taking over companies

* New products value cards specific oils * Demographic change more roads

Threats

Threats are obstacles that face the business internally and externally. Generally come from competitors in the market. * What obstacles do you face such as competitors Shell * What competitors doing differently * New competitors in recent years such as Apple green and Topaz * New regulations

PEST this is an environmental audit tool that analyses the external environment of a business.

Political environment| Economic environment| * Heavily regulated different legislation for different countries * Health and safety transporting oil. * Explorations can upset locals as seen with Shell in Mayo * Securing rights from the government to explore. * Government restrictions| * High tax rates cause prices to sore * Usage levels * Exchange rates * Cost for oil exploration| Social environment| Technological environment|

* Transporting around the world * We have seen the pressure to secure oil rights with American going to war in the Far East * Growing population will mean more cars with more oil demand emigration will mean vice versa * Smaller cars means less fuel consumption| * New pay at pump option * Loyalty cards savings * Staying up to date on It/internet with customers|

Porter’s 5 Forces

1. The bargaining power of suppliers The supplier has pretty much all the bargaining power when it comes to oil as it’s a commodity with only a certain life span left. With oil expiration being so costly and so hit and miss the price for oil will always remain high and remain rising.

2. The bargaining power of buyers The buyers bargaining power is limited but with Texaco being a leading player in this market there would be more room to bargain than lesser size companies. The company does hold an advantage with it pretty much sourcing the oil transporting and selling it.

3. The threat of substitute products or services Although there is no substitute for oil on the market place of yet there does seem to be a growing improvement in electricity power when it come s to powering cars etc. The fact is they realise oil isn’t sustainable for ever. 4. The threat of new entrants

There will always be competition in this sector of the market with prices constantly fluctuating. People will always shop around for the cheapest prices. We see this today with new competitors such as Tesco trying to beat everyone on price. Rural areas can have loyalty to local stations but will generally always come down to price. 5. Rivalry among competitors

This area would equate largely to this company as they have many competitors of equal size in this country and there services cannot be greatly differentiated. So it is a very competitive market place.

Conclusion

In light of the above analysis it can be concluded that Texaco will remain a dominant company in the oil market for the foreseeable future. The large scale of the company and their ability to remain at the high end of the market for so long will surely not change anytime soon. Unfortunately the long turn future of the company is dark with the eventual exhaustion of fuel estimated to be around 2050. But with prices constantly on the rise this company will be generating high profits for the time being.

Recommendation

Texaco will constantly be having to pump money into exploration and trying to get the competitive edge on competitors wherever they can. They have to be wary that a substitute for oil is coming in some shape or form be it electricity powered car s or some substitute for fossil fuel and they need to be the first to swoop in when it does come.

Bibliography

Swot definitions http://en.wikipedia.org/wiki/SWOT_analysis Opportunities definitions www.tutor2u.ne Read more: http://www.answers.com/topic/texaco#ixzz2Cf0w29B4 www.Texaco.com used to source profile and stats. http://richet.hubpages.com/hub/PEST-Definition