The paper “ BHP Billiton Strategic Analysis” is a worthy variant of the case study on marketing. In today’ s highly competitive business world, organizations strive to build sustainable competitive advantages. The business world is highly unpredictable and, therefore, multinational firms, including BHP Billiton, are building lasting and sustainable competitive advantages in order to remain ahead of the competition (Zhou & Wu, 2010). BHP Billiton is an Australian metal, mining, and petroleum company, which was formed in 2001 through the merger of its parent companies; Broken Hill Proprietary Company Limited (BHP) and Billiton plc (BHP Billiton, 2014).
Mergers and acquisitions and corporate restructuring have become a large part of BHP Billiton. Every now and then, the company is arranging mergers and acquisitions, which are meant to bring together different companies with an aim of forming a larger entity. The essence of coming together for such companies is to try and dominate the market. Although some of these deals have ended up being successful, there are some mergers that do not work, and in most cases, the company has faced numerous challenges, including higher costs.
The purpose of this paper is to analyze BHP Billiton’ s key resources, capabilities, and core competencies. The paper begins by analyzing the company’ s external environment using Porter’ s Five Forces. The paper then proceeds to analyze the company’ s internal environment. In addition, the paper discusses the strategies implemented by the organization which has led BHP Billiton to achieve growth. Finally, the paper will look at the implications of the recent decision by the management to split the company as well as possible changes that should be made in order to ensure the company’ s continued profitability. External AnalysisAccording to Porter, there are five competitive forces that can shape the attractiveness of the industrial metals and minerals industry, including conflicting firms, the threat of product substitutes, new market entrants, and the ability of buyers and suppliers to exercise their bargaining power in the market (Porter & Kramer, 2002).
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