... Project Management & Supply Chain Strategy Case: BP and the consolidation of the oil industry, 1998-2002 From 1998-2002,dominant, large firms emerged in the gas and oil industry that were separate from the rest, including BP.
From the study, it can be seen that the gas and oil industry does not have perfect competition, particularly since prices are controlled easily due to oligopoly.
Still, the oil industry will approach perfect competition as OPEC countries begin to draw apart and price competition increases (Reinhardt et al, 2010: p3).
In order to increase profits, therefore, suppliers are expected to pursue a strategy of lower prices and increase in supply.
However, this will eventually result ...