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BP Business Model Canvas

BP Business Model Canvas
Photo by Frantzou Fleurine, Edited by Grey Knight

A Brief History of BP

BP plc, formerly known as British Petroleum, is a multinational oil and gas company with its headquarters in London, England. The company has a long and complex history dating back to the early 20th century.

The origins of BP can be traced back to the founding of the Anglo-Persian Oil Company in 1909, which was established to exploit oil discoveries in Iran. The company’s name was changed to the Anglo-Iranian Oil Company (AIOC) in 1935, and it played a key role in the development of Iran’s oil industry.

In the 1950s, the Iranian government sought to nationalize its oil industry, leading to a crisis between AIOC and the Iranian government. This ultimately led to the company being renamed British Petroleum in 1954.

In the following decades, BP expanded its operations globally, acquiring numerous oil and gas assets around the world. The company also diversified into other areas such as petrochemicals and renewable energy.

BP faced a major crisis in 2010 when the Deepwater Horizon drilling rig, in which BP had a major stake, suffered a catastrophic explosion and oil spill in the Gulf of Mexico. This disaster led to significant financial and reputational damage to the company.

In recent years, BP has made efforts to rebrand itself as a more environmentally friendly and sustainable company, investing in renewable energy and reducing its carbon footprint.

Today, BP is one of the largest oil and gas companies in the world, with operations in over 70 countries and a strong focus on developing cleaner energy solutions for the future.

BP Purpose

Who Owns BP?

BP p.l.c. is a publicly traded company, meaning it is owned by a multitude of shareholders who have purchased shares of the company. The largest shareholders of BP p.l.c. are institutional investors such as mutual funds and pension funds, as well as individual retail investors. The top 10 shareholders of BP p.l.c. include The Vanguard Group, BlackRock, Inc., Norges Bank Investment Management, Legal & General Group, UBS Group AG, Mitsubishi UFJ Financial Group, Inc., State Street Corporation, Capital Group Companies, Inc., and Northern Trust Corporation. These shareholders collectively own a significant portion of the company and play a role in shaping its governance and decision-making processes.

BP Mission Statement

BP p.l.c. is committed to providing energy that helps drive progress and improve the lives of people around the world. Our mission is to lead the way in delivering energy solutions that are safe, reliable, and sustainable, while also being mindful of our environmental impact. We aim to be a responsible corporate citizen, contributing to the development and prosperity of the communities in which we operate. At BP, we strive to achieve success, not only for our shareholders, but also for our employees, partners, and the planet.

How BP Makes Money?

BP p.l.c. operates on a diversified business model that generates revenue through various streams. The company primarily makes money through its exploration, production, refining, distribution, and marketing of oil, gas, and other energy-related products. Additionally, BP also earns revenue from its renewable energy segment, which includes wind and biofuels. Furthermore, the company has a significant presence in the downstream segment, with a wide network of retail and convenience stores, generating revenue through fuel sales and other products and services. Overall, BP’s business model is focused on maximizing revenue through the entire value chain of the energy industry, from exploration and production to distribution and marketing.

BP Business Model Canvas

The Business Model Canvas is a strategic management tool for developing new or documenting existing business models. It provides a visual representation of various components of a business and helps in understanding the key activities, resources, and relationships needed for a successful business. In this article, we will create a detailed Business Model Canvas for BP p.l.c., a multinational oil and gas company.

Customer Segments:

1. Retail customers – individuals and businesses purchasing fuel and other products from BP’s gas stations.
2. Industrial customers – businesses and organizations needing large quantities of fuels and lubricants.
3. Wholesale customers – other companies and fuel retailers buying BP’s products in bulk.

Value Propositions:

1. High-quality fuels and lubricants
2. Convenience at gas stations with additional services like car wash and convenience stores.
3. Commitment to sustainability and renewable energy sources.


1. Gas stations – physical locations where customers can purchase BP’s products.
2. Online platforms – BP’s website and mobile app for online purchasing and loyalty programs.
3. Partnerships with other retailers and businesses.

Customer Relationships:

1. Loyalty programs and rewards for repeat customers.
2. Customer support through helplines, email, and social media channels.
3. Regular communication on environmental initiatives and sustainability efforts.

Revenue Streams:

1. Sale of fuel, lubricants, and other products at gas stations.
2. Subscription and membership fees for loyalty programs.
3. Licensing and royalty fees for partners using BP’s brand and technology.

Key Resources:

1. Oil and gas reserves and production facilities.
2. Retail locations and infrastructure for distribution.
3. Brand reputation and customer trust.

Key Activities:

1. Exploration, extraction, and refining of oil and gas.
2. Marketing and advertising for products and services.
3. Research and development for sustainable energy solutions.

Key Partners:

1. Suppliers of crude oil, equipment, and technology.
2. Franchisees and gas station owners.
3. Government bodies and regulatory agencies.

Cost Structure:

1. Exploration and production costs for obtaining oil and gas.
2. Operations and maintenance expenses at retail and distribution facilities.
3. Marketing and advertising budgets for promoting the brand and products.

BP’s Competitors

BP p.l.c. operates in the oil and gas industry and competes with several other major global energy companies. Some of its top competitors include Shell, ExxonMobil, Chevron, TotalEnergies, and ConocoPhillips. These companies are also involved in the exploration, production, refining, and distribution of oil and gas, as well as alternative energy sources, making them direct competitors with BP p.l.c. in the global energy market.

BP SWOT Analysis


1. Strong global presence
2. Diversified portfolio of energy products
3. Advanced technology and innovation in oil exploration and production
4. Strong brand recognition and customer loyalty


1. High dependence on oil and gas
2. Exposure to environmental and regulatory risks
3. Declining oil reserves
4. Negative public perception due to past environmental disasters


1. Growing renewable energy market
2. Expansion into emerging markets
3. Potential for acquisitions and partnerships in the energy sector
4. Increasing demand for cleaner energy solutions


1. Fluctuating oil prices
2. Increased competition from renewable energy sources
3. Regulatory changes affecting oil and gas industry
4. Environmental activism and pressure to reduce carbon emissions

Concluding Analysis

As I wrap up my analysis of BP p.l.c.’s business model, I am struck by the company’s efforts to shift towards renewable energy and cleaner practices. I believe that their commitment to sustainability and the pivot towards low-carbon businesses will pave the way for a successful future. The investments in renewable energy and technology advancements show promise in driving the company’s growth and profitability. With a focus on innovation and sustainability, I am optimistic about BP p.l.c.’s potential to stay ahead of the curve and thrive in the ever-changing global energy landscape. It’s an exciting time for the company, and I look forward to seeing how they continue to adapt and innovate in the years to come.

Additional Resources

To keep learning and advancing your career, we highly recommend these additional resources:

Business Model Canvas of The Top 1,000 Largest Companies by Market Cap in 2024

A List of 1000 Venture Capital Firms & Investors with LinkedIn Profiles

Peter Thiel and the 16 Unicorns: The Legacy of Thiel Fellowship

9 Biggest IPOs of All Time

List of Fortune 500 Companies in 2023

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