Term Paper on "BP Solar"

/>BP is a well-known brand supplying BP petroleum and derivative products primarily through a global network of BP service stations. This brand equity makes it easy to establish new products and services under the BP name. Brand equity and access to an efficient distribution channel have allowed BP to grow into a company that grossed a 253,621 billion U.S. dollars in 2005 (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures"). BP is one of the largest employers with nearly 96,200 employees worldwide (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures").

BPs current structure involves four vertically integrated sectors; private sector oil, natural gas, gasoline and derivative products such as fuel oil. Now BP has decided to extend its products and services into the growing field of alternative energy. BP Solar is the world's leading producer of solar panels. Like the early evolution of its petroleum products BP established itself as a world leader through a series of acquisitions in the solar power industry. BP has decided recently to extend its holdings in alternative power to include wind and hydrogen power as well. This new branch would be known as BP Alternative Energy.

Greening of the Brand

The oil industry has had a tarnished reputation as far as the environment is concerned. BP was responsible for one of the worst environmental disasters in the history of the oil industry. The Alaska oil disaster became part of BP's brand image (Nussbaum). This was not the desired effect, but nonetheless to BP became known as the company responsible for the environmental disaster (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures"). In 2002 the company decided to re-brand its image and drop in the familiar shield that had been associated with it since 1989. It decided to dissociate with the British images well and brand the new company "Beyond Petroleum" (BP. http://www.bp.com/extendedgenericarticle.do?categoryId=3&contentId=7005342BP facts and figures"). This name and branding allow them to expand beyond the petroleum industry and embark on ventures into the alternative energy industry. It also helps them to develop more global branding.

Alternative energy is expected to be one a largest growth sectors in the next several decades. The will industry has beared the brunt of the blame for environmental damage caused by use of their products. It makes sense for BP to try to mitigate this bad image by embarking on research into alternative energy. The new image required a new logo that was more environmentally friendly. The green and yellow sunburst emphasizes the company's new focus on environmentally friendly fuels and alternative energy. This move was intended to get BP away from the bad image that has plagued most oil companies since the early1980s. Some environmental groups do not feel that this new branding is anything more than an attempt to convince the public that they are more environmentally friendly, while in reality they continue to pollute the environment and show little concern for the planet's natural resources (BP. "Making Energy More Sustainable - Sustainability Report 2005")

It makes little difference from a pragmatic standpoint, whether BP is sincere about it's environmentally friendly moves, or whether it is simply a PR move to improve the company's image. Regardless of the motive, BP's entry into the alternative energy industry means some major research dollars are being pumped into improved solar panels, wind power, and other forms of alternative energy. BP has the money to back this research and regardless of how one feels about their past reputation, their entry into the field will improve alternative energy and technology so that it will be more efficient and cost effective in the future. The entry of BP into the alternative energy market means improvements that will help everyone regardless of political intent.

BPs chief executive, Lord Browne of Madingley, has expressed concern over global warming and feels that real and urgent action is needed (BP. "Making Energy More Sustainable - Sustainability Report 2005"). In addition to BP's alternative energy projects it is also attempting to improve production in its North Sea oil fields by pumping carbon dioxide into them. In and 2004, BP began marketing low-sulfur diesel fuel for industrial use. BP's sudden concern for the environment seems contradictory and light of other actions that it has taken. For instance, BP has been involved in bringing lawsuits against biofuel and biodiesel producers in France and other countries (Nussbaum).

Technological Perspectives

In order to meet the growing energy demands of increasing technology companies need to develop ways to use what we have more efficiently. We know about the negative consequences of increased petroleum product usage. The challenge for the future is to meet increasing demand without further destroying the environment. BP has 30 years of experience in the solar industry. It is a leading manufacturer and marketer of photovoltaic modules and systems in the U.S., Spain, Australia, and India (BP Solar International Inc.).

The focus of BP solar has been to build in solar panels that are more efficient using thin-film technology. Its most recent project is the introduction of laser grooved monocrystaline solar modules. These cells represent a 30% increase in solar efficiency from the previous technology. They expect to increase production capacity to 200 mega watts by the end of the year 2006 (BP Solar International Inc.). Solar energy is seen as the answer to the problem of producing safe and efficient energy for increasing energy demands.

From the standpoint of an energy user the switch to solar power will mean very little other than the source of the energy. Energy will still be accessed by plugging into wall outlets just as you do now. The beauty of the new technology is that solar energy does not have to be an all or none venture. Solar can be used to supplement current energy sources and to eliminate excess usage. For instance, for the home user one can take the most expensive appliance off of the grid and supply it using solar energy. This helps to reduce consumption of petroleum-based energy sources. This will result in a reduction of energy costs for the home user.

Solar energy systems come in a variety of sizes and shapes that were not available on the market twenty years ago. For instance, partial systems are now available where solar panels provide energy during the peak hours of daylight and demand but the system seamlessly switches over to the traditional grid on cloudy days or nights. Solar energy is an excellent alternative where the grid is not available. Solar systems are relatively low maintenance and have no moving parts. Although the initial cost is steep, the savings are realized over the longer period of time.

BP built its empire through foresight and the ability to anticipate future needs. BPS success in the future will stem from the ability to turn a liability into an asset. The oil industry has been criticized by environmentalists, government agencies, and the general public for their lack of concern for the environment over profits. BP absorbed much of the brunt of this criticism because of its position as a giant in the oil industry.

BP will be a leader in the solar industry because it sees the need to develop more efficient, environmentally friendly energy alternatives. It has decided to use its position as a global leader in the energy industry to become a leader in the use of alternative energy. This will accomplish two goals for the company. It will help to alleviate its image as an environmental enemy and will encourage growth. It will increase innovation in the development of new technology, including media sources that will mean… READ MORE