An Analysis of the Joint Venture Between Petrochina and Ineos : Is It a Competitive Strategy Initiative by Petrochina?
ABSTRACT:
Petrochina, one of the largest companies in the world, has
established a joint venture with Ineos refining in 2011, with strategic motives to attain competitive advantage and core competence. From the context of corporate strategy and joint ventures, a joint venture is the best way to share and utilize the complementary assets from another company with low risk compared to any other process such as acquisitions. Using the resource based theories such as PESTEL and VRIN , the paper has derived that Ineos will contribute to build a core competence and competitive advantage through its distinctive capabilities. The several issues faced by the firm such as low market demand for oil products, threat of take over and complexities in management structure are also exposed. These issues combined could act as a great challenge for the company. The paper also concludes with the needful recommendations for the several issues exposed above.
WORD COUNT: PRESENTED TO:
3924 Mr. Joe Lafferty
CONTRACT CONCERNING PLAGIARISM
I, the undersigned, have read the Code of Practice regarding plagiarism contained in the Students' Introductory Handbook. I realise that this Code governs the way in which the Centre for Energy, Petroleum and Mineral Law and Policy regards and treats the issue of plagiarism. I have understood the Code and in particular I am aware of the consequences, which may follow if I breach that code. I also authorise the centre to scan the e-copy of my research paper through the Plagiarism Detection Software to detect plagiarism
SIGNED: Date:
11 – 05 – 2012
TABLE OF CONTENTS LIST OF ABBREVIATIONS…………………………………………………………...ii LIST OF FIGURES…………………………………………………………………..…iii 1.0 INTRODUCTION………………...………………………………………...……….1 1.1 Company text…...……………………….……………………….........1
2.0 JOINT VENTURES IN THE CONTEXT OF OIL INDUSTRY…………...…....2 2.1 Objectives of the Joint venture…………………………………...........3
3.0 ANALYSIS OF STRATEGIC FIT OF PETROCHINA'S
Petrochina, one of the largest companies in the world, has
established a joint venture with Ineos refining in 2011, with strategic motives to attain competitive advantage and core competence. From the context of corporate strategy and joint ventures, a joint venture is the best way to share and utilize the complementary assets from another company with low risk compared to any other process such as acquisitions. Using the resource based theories such as PESTEL and VRIN , the paper has derived that Ineos will contribute to build a core competence and competitive advantage through its distinctive capabilities. The several issues faced by the firm such as low market demand for oil products, threat of take over and complexities in management structure are also exposed. These issues combined could act as a great challenge for the company. The paper also concludes with the needful recommendations for the several issues exposed above.
WORD COUNT: PRESENTED TO:
3924 Mr. Joe Lafferty
CONTRACT CONCERNING PLAGIARISM
I, the undersigned, have read the Code of Practice regarding plagiarism contained in the Students' Introductory Handbook. I realise that this Code governs the way in which the Centre for Energy, Petroleum and Mineral Law and Policy regards and treats the issue of plagiarism. I have understood the Code and in particular I am aware of the consequences, which may follow if I breach that code. I also authorise the centre to scan the e-copy of my research paper through the Plagiarism Detection Software to detect plagiarism
SIGNED: Date:
11 – 05 – 2012
TABLE OF CONTENTS LIST OF ABBREVIATIONS…………………………………………………………...ii LIST OF FIGURES…………………………………………………………………..…iii 1.0 INTRODUCTION………………...………………………………………...……….1 1.1 Company text…...……………………….……………………….........1
2.0 JOINT VENTURES IN THE CONTEXT OF OIL INDUSTRY…………...…....2 2.1 Objectives of the Joint venture…………………………………...........3
3.0 ANALYSIS OF STRATEGIC FIT OF PETROCHINA'S
References: JVs afford unique opportunities to study howfirms assert property rights over jointly used assets because parents clearly delineate control (Hege.U, 2009) Fig. 2, Demand Growth in Europe, Source: International Energy Data , 2012 5 Fig. 3, GDP Trend in Europe, Source: Mintel, 2009 Fig