AUGUST 28, 2022

UNIVERSITY OF TECHNOLOGY
MAURITIUS
SCHOOL OF BUSINESS MANAGEMENT AND FINANCE

MBA (Project Management)

By:
Jadoonunnun Keshta (2103_20968)
Naraynen Ravin (2103_20553)
Rambhoro Stephan Jimmy Didier (2103_20683)

Number of words: 4090

Contents
Introduction................................................................................................................................2
Abbreviation & Acronyms.........................................................................................................3
Overview of the company..........................................................................................................4
Background............................................................................................................................4
Mission, Vision, and Values of the Company........................................................................5
Mission...............................................................................................................................5
Vision.................................................................................................................................5
Values.................................................................................................................................5
Petroleum Products Distribution and Retailing..........................................................................6
Business Analysis Techniques...................................................................................................7
Porter’s Five Forces Model Analysis.....................................................................................7
Intensity of Competitive Rivalry........................................................................................8
Threat of New Entrants......................................................................................................8
Threat of Substitute Products.............................................................................................8
Bargaining Power of Suppliers..........................................................................................8
Bargaining Power of Buyers..............................................................................................9
Value Chain Analysis.............................................................................................................9
Competition..........................................................................................................................10
Competitors Profiling.......................................................................................................10
Competitors Analysis.......................................................................................................11
SWOT Analysis...................................................................................................................13
PESTLE Analysis of VIVO Energy Mauritius Limited......................................................14
Position Audit/Situational Analysis of VEML........................................................................17
Business Performance Review.............................................................................................17
Strategic Business Units.......................................................................................................18
Short Term Objectives.....................................................................................................18
Long Term Objectives......................................................................................................19
Impact on Stakeholders........................................................................................................20
Summary of VEML Business Analysis...............................................................................21
Conclusion and recommendations...........................................................................................23
References................................................................................................................................24
Introduction

Petroleum is the world's second most consumed commodity, trailing only water. For the
comforts and conveniences of our modern world, we rely on petroleum more than any other
resource as an island. The industry produces goods that are essential to the economy's
operation. Almost all modes of transportation, including land, sea, and air, are powered by
refined petroleum products (Pirog, 2005). In recent years, changes in the volatile global
economic environment have compelled many businesses to revise their strategies to remain
competitive. Businesses that trade on a global scale could reap higher incomes and increased
availability of better quality and increasingly differentiated final products. To take advantage
of these opportunities, however, a fundamental restructuring of organizational strategy and
processes is required (Bradley et al., 1993). These changes in the global economic business
environment have had an impact on the operations of many industry sectors, including the
petroleum industry. This is especially true because increased business activity around the
world has increased demand for petrochemical products. Oil and petrochemical companies
have increased their market share and profitability by reaching a larger customer base as
global demand for oil and its derivatives has steadily increased (Hussain et al., 2006).
However, because of the rigidity in the petroleum industry's supply chain, the increase in
global demand and ease of international trade has made the petroleum industry's supply
chains more complex and difficult to manage (Coia, 1999). VIVO Energy Mauritius Limited
being a petroleum company had to work on its business strategy to cope with all the change
happening in the Oil and Gas industry. This assignment is based on strategies that VIVO
energy Mauritius Limited is/will be adopting to achieve its short term and long-term goals
(coming 5 years).
Abbreviation & Acronyms

B2B Business to Business

BU Business Unit
EV Electrical Vehicle
OU Operating Unit
QM Quality Marshal
STC State Trading Corporation
TM Territory Manager
VEML VIVO Energy Mauritius Limited
Overview of the company

Background

VIVO Energy was established in 2011, as a partnership between Vitol Group, a Swiss-based
Dutch-owned multinational energy and commodity trading company, and Helios Investment
Partners, a United Kingdom-based private equity firm, with the objective to purchase
majority of shares in the downstream fuels business of Royal Dutch Shell in Africa for
approximately $1 billion. Accordingly, VIVO Energy in 23 countries.

VIVO Energy Mauritius Limited (VEML) is one of the 23 countries owned by VIVO Energy.
As at End 2021, VEML count some 125 employees split in the different business unit where
it operates, 51 Retail Stations split around the Mauritius Island, and commercial customers
split between aviation, marine and industries.

Below gives an insight about VEML supply chain:

Source: VEML

Picture 1.1 – Supply Chain of VEML

Mission, Vision, and Values of the Company

Mission

The mission of VIVO Energy is “To safely market and distribute energy and petrochemical
products while offering innovative value-added services.”

Vision

VIVO Energy’s vision is “To become the most respected energy business in Africa”. For
them, this means doing business the right way and putting Health, Safety, Security, and
Environment first.

Doing Business, the right way

At VIVO Energy, they don’t set themselves demanding ethical standards out of a sense of
altruism or because they lack ambition. They do the right thing because it’s the best way to
succeed and grow the business.

The standards they apply and adhere to across Africa are the same high standards that apply
in the world’s most tightly regulated downstream markets. They have zero tolerance for
corruption, unsafe practices, environmental neglect, or unfair competition.

Putting Health, safety, security, and Environment (HSSE) first

For VIVO Energy this means:

 Goal Zero: putting safety first

 Investing in the future – for the business and the communities and countries in which
we operate
 Delivering value to our employees: empower, recognise, and reward.
 Caring for the environment, communities, and people. Clear vision and swift decision
making.

Values

The core values of VEML are honesty, integrity, and respect for people. These underpin all
the work VEML do and are the foundation of its core business. VEML uphold these values in
everything they do. Indeed, they are crucial to their success and growth as a company, and to
achieving their vision of becoming “Africa’s most respected energy business”.
These core values are encapsulated in its Code of Conduct and General Business Principles,
which outline clear, concrete, and detailed principles and ethical actions by which VEML
should conduct itself, and drive the behaviour always expected of every employee in every
VIVO Energy operation.

Petroleum Products Distribution and Retailing

Fuel distribution and retailing is a global industry that exists in every country. VEML is one
of these companies that operates a network of service stations where motorists can purchase
fuel. They arrange for larger customers to be delivered by truck or other means. The
following are the most common petroleum fuels commercialized in Mauritius (with their
main uses in brackets):

 Diesel (used for automotive, generators, some industrial engine or heating fuel)
 Petrol (automotive, small generators)
 Kerosene and Jet Fuel (domestic and aviation fuel) The quality of kerosene and jet
fuel is comparable.)
 LPG stands for liquid petroleum gas (domestic and industrial fuel, automotive in
some countries)
 Heavy fuel oil (ships’ bunker fuel, power generation, industrial fuel)

Other than fuels, lubricants and solvents are special refined petroleum products distributed to
commercial buyers. Different arrangements are found concerning the ownership and
operations of service stations. These carry the brand of SHELL but are in many cases
operated by a local businessperson under an agreement (franchise) with VEML. Service
stations sell not only fuels, but often also equipment for motorists, fast food, magazines,
groceries, car wash and other things. Some also provide repair services for cars. The business
of fuels distribution and retailing involve the following key activities critical for commercial
success:

 Acquisition of good sites for service stations.

 Attractive service stations with access to other products and amenities appreciated by
motorists
 Access to adequate supplies from refineries through STC or import trade
 Effective logistics, including terminals with storage tanks and truck transport
  Effective marketing and customer loyalty schemes, often involving payment cards
 Strategic or national emergency stocks as required by Ministry of Energy.

Business Analysis Techniques

To analyse the business strategy of VEML, we will use the below techniques:

 Porter’s Five Forces Model Analysis

 Value Chain Analysis
 SWOT Analysis
 PESTLE Analysis

Porter’s Five Forces Model Analysis

The Porter’s 5 forces model and competitive market structure analysis are common models
used for analysing the specific external environment of organizations, also known as
microenvironment of organizations, such as VIVO Energy Mauritius Limited.

Porter has suggested that it is the “collective strength of these forces that determine the
attractiveness of the industry”. Organisation should tend to find a position in the industry
where it can either defend itself against these forces or influence them in its favour.

Porter’s Five Forces Model

Sources: StudiousGuy 2018

 Picture 1.2 Porter’s Five Forces Model

VIVO Energy Mauritius Limited Porter’s Five Forces Model

Intensity of Competitive Rivalry High

Threat of New Entrants High
Threat of Substitute Products High
Bargaining Power of Suppliers Medium
Bargaining Power of Buyers Medium

Intensity of Competitive Rivalry

VEML's main competitors include IOML, EPML, and Total Energies, all of which have a
global presence in the oil and gas industry (Hoovers, 2012). Because of the companies' global
operations and branding and differentiation strategies, competition with these companies is
fierce. The companies have established globally recognized brands and large clientele, which
increases industry competition.

Threat of New Entrants

The threat of new entrant is high for VEML since new entrants into the Mauritius petroleum
market, new ways of doing things, have increased pressure on VEML through a lower pricing
strategy, cost reductions, and new value propositions to customers. To maintain its
competitive advantage, VEML must manage all these challenges and construct effective
barriers.

Threat of Substitute Products

For the company, the threat of substitutes is high. This is due to the high substitutability of
oil-related products, chemicals, and natural gas produced by different companies. Products
from major competitors can be used as substitutes for the company's products. As a result, the
threat of substitutes is high for the company.

Bargaining Power of Suppliers

Major suppliers for VEML are located in Fujairah and South Africa for own import product
that is Gasoil 2500 ppm and Heavy Fuel Oil and over the years VEML has gain loyal supplier
and build up a strong supply chain. In addition, VEML has secured agreement with the STC
for supplying local regulated products (Gasoline and Gasoil 50 ppm) to the Mauritian
economy. These have been the backbone to VEML success. VEML has developed a strong
relation with its suppliers and the STC, therefore according to the above-mentioned situation,
the bargaining power of suppliers is medium.

Bargaining Power of Buyers

Oil and gas are critical components of any economy. Oil is used in the production processes
of an economy. This explains why, in some developing countries, such as Mauritius, oil
supply is managed by state agencies. Furthermore, the oil industry is characterized by
companies banding together to form cartels to gain market control (Bloomberg, 2012).
Furthermore, because most oil product buyers buy in bulk, the loss of one buyer would have a
significant impact on the company's revenue. As a result, buyers' bargaining power is
medium.

Value Chain Analysis

Porter (1980) outlines the need for business to have a competitive strategy to be profitable.
Competitive strategy should lead a firm to either a cost or differentiation target. Porter (1980)
argues that a firm should not attempt to both differentiate and be a low-cost leader, as this can
lead a firm to be caught in the middle and lose out to firms that do specialize (Ankli, 1992).
These generic strategic approaches that firms can use to outperform others in the industry.

The aim of any value chain analysis is to understand the systemic factors and conditions
through which a value framework and its companies can achieve higher levels of
performance. The downstream oil company business is increasingly stimulated for growth in
the B2B, while the earnings in the retail segments remain strictly regulated and constrained
by the STC and Ministry of Energy.

Value Chain Analysis of VEML

 Picture 1.3 Value Chain Analysis of VEML

Primary activities of VEML comprise of the following:

 Inbound logistics
 Operations
 Outbound Logistics
 Marketing & sales
 Service

Inbound Logistics

 Purchase petroleum product from STC for sales to Retail and B2B
 Purchase petroleum product from international supplier for sales to Marine Bunkering
Business

Operations

 Quality management of product with use of IT to carry out testing at low cost

Outbound Logistics

 Biggest storage capacity, warehouse products (Lubricant, LPG cylinder and fittings)
and distribution in Mauritius

Marketing & Sales

 Shell branded product, one of the most recognisable brands in the world.
 In B2B, it provides companies with fuel for transportation, energy for heat and light,
Lubricants and LPG.
Services

 Complaints and queries services through its customer service centre.

Competition

Competitors Profiling

According to Gordon and Gordon, 1989, the strategic explanation of competitor profiling is
forcefully simple. Superior knowledge of rivals offers a valid source of competitive
advantage. The raw material of competitive advantage consists of offering superior client
value in the business chosen sector. Profiling facilitates the ideal strategy in three important
ways. First, profiling can reveal strategic iniquities in rivals that the establishment may
exploit. Second, the visionary station of competition profiling will allow the establishment to
anticipate the strategic response of their rivals to the establishment’s planned strategies, the
strategies of other competition enterprises, and changes in the environment. Third, this
visionary knowledge will give the enterprises strategic dexterity. Offensive strategy can be
enforced more smartly to exploit openings and subsidize on strengths. Also, protective
strategy can be employed more competently to fight the trouble of rival enterprises from
exploiting the establishment’s own sins.

Competitors Analysis

According to Miller et al., 2009, Competition analysis in marketing and operation is an

assessment of the strengths and weaknesses of current and indirect opponents. This analysis
provides both an attacking and protective strategic environment through which to identify
openings and pitfalls. Competitor profiling combines all the applicable sources of
competition analysis into one frame in the support of efficient and effective strategy
expression, perpetration, monitoring and adaptation. Competitor analysis is an essential part
of commercial strategy. It's argued that utmost enterprises don't conduct this type of analysis
totally enough. Instead, numerous enterprises operate on what's called “informal impression,
conjectures, and suspicion gained through the taste of information about challengers every
manager have.”

VEML competitors are:

 Engen Petroleum (Mauritius) Limited – Engen has a network of 33 service stations,

with seven sites operating on 24/7 basis and nine sites with convenience offering,
 Engen Mauritius is committed to bringing service excellence to its customers. Apart
from the Retail business, Engen Mauritius also serves; Commercial business sector,
Marine, Aviation, Lubricant and offer a fuel fleet solution the 1-Card.
 Total Energies – Present in Mauritius for more than 60 years, TotalEnergies Mauritius
Limited, a subsidiary of the TotalEnergies Group, is positioned in all segments of the
distribution of petroleum products: network of service stations, industry, aviation and
marine. With 47 service stations spread across the island, TotalEnergies Mauritius has
the second densest network in Mauritius and distributes lubricants and LPG to
individuals and industrial customers. TotalEnergies Mauritius Limited is part of the
TotalEnergies Group, one of the leading international oil groups.
 Indian Oil (Mauritius) Limited – IndianOil (Mauritius) Ltd (IOML) is a fully owned
subsidiary of Indian Oil Corporation Ltd. IOML was incorporated in Mauritius in
2001 and began physical operation in 2004. IOML business activities range within the
sectors of aviation, bunkering, retail, lubricants, and consumer. IOML has presently a
total of 27 filling stations across the island with the latest one commissioned in
November 2020 at Triolet.
 Oceanis Bunkering Ltd – Oceanis Bunkering Ltd has been registered since September
29, 2015. Its registered office is at Taylor Smith House. The company provides fuel
bunkering services in Port Louis through its two barges, the M/T Emily and M/T
Elise, which have a capacity of 6,952 metric tons and 493 metric tons respectively.
 Stonewin (Mauritius) Ltd – Since January 2019, Stonewin (Mauritius) Ltd has been
bunkering in Port-Louis. It uses the M/T Hakkasan barge, which has a capacity of
11,647 metric tons. The company was incorporated in November 2018.
SWOT Analysis

The swot analysis summarizes key issues from the business environment and an
organization's strategic capabilities that are most likely to influence strategy development.
The goal is to determine how well an organization's strengths and weaknesses can deal with
environmental changes. SWOT analysis serves as a guide for management action and an
excellent framework for decision-making. The main goal of a swot analysis is to identify the
strategies that will best match VEML's resources and capabilities to the opportunities and
threats of VEML's environment, play down weaknesses, avoid threats, or use creativity and
innovation to turn threats into opportunities. It further helps identify and align a set of
strategies at functional level, at business level and at corporate level. (Hill, Jones, 2008, Pg 9)

Picture 1.4 SWOT Analysis of VEML

PESTLE Analysis of VIVO Energy Mauritius Limited

 Political
o The Government of Mauritius import petroleum products through the STC.
Five grades of petroleum products are sourced: Gasoline, Gasoil 50 ppm,
Gasoil 2500 ppm, Jet A1 and Heavy Fuel Oil. LPG is also sourced by the
STC.
 Economical
o Efficiency of financial markets in Mauritius – VEML can access vibrant
financial markets and easy availability of liquidity in the equity market of
Mauritius to expand further locally.
o Downward pressure on consumer spending – Even though the consumer
disposable income has remained stable for years, there is a tendency for
changes since COVID-19, this resulted in growing inequality in the society
which negatively impact consumer sentiment and thus impact consumer
spending behaviour.
o Inflation rate – COVID-19, Russian/Ukraine war and political issues has
affected the Mauritius inflation rate. There are indicators that the curve tends
toward an increasing inflation in the Mauritian economy.
o Exchange rate – The volatile exchange rate of Mauritius can impact VEML
investment plans not only in the short term but also in the long run.
 Social
o Power structure – There is an increasing trend of income inequality in
Mauritius. This has altered the power structure that has been persistent in the
society for over last decades.
o Migration – The broader attitude towards migration is positive in Mauritius
(Mauritius government selling Mauritian passport and opening boarders to
expats). This can impact VEML ability to bring international leaders and
managers to manage operations in the country.
o Leisure interests – the customers in the Mauritius are giving higher
preferences to experiential products rather than traditional value proposition in
 Energy sector. VEML can leverage this trend to build products that provide
enhanced customer experience.

 Technological
o Lowering cost of production – The latest technology is fast lowering
production and servicing cost in the Energy sector. VEML has to restructure
its supply chain to bring in more flexibility to meet both customer needs and
cost structures.
o Developments and dissemination of mobile technology has transformed
customer expectations in the Energy sector. VEML must not only meet and
manage these expectations but also must innovate to stay ahead of the
competition.
o Research and development investment at both macro level and micro level in
Mauritius. If there is an environment of creative disruption and both
government and private players are spending resources on developing new
solutions.
 Legal
o Health and safety norms in the Mauritius and what VEML need to do to meet
those norms and what will be the cost of meeting those norms.
o Environment Laws and guides – The level of environmental laws in the
Mauritius Africa and what VEML needs to do to meet those laws and
regulations.
o Employment law in Mauritius.
o Legal protection of intellectual property, patents, copyrights, and other IPR
rights in Mauritius. How VEML will be impacted if there are not enough
protection.
 Environment
o Environmental norms are also altering the priorities of product innovation. In
many cases products are designed based on environmental standards and
expectations rather than catering to traditional value propositions.
o Recycling is fast emerging as a norm rather than a good thing to do in
Mauritius economy. Vivo Energy must make plans to adhere to regulations
and expectations in the Energy sector.
o Regular scrutiny by environmental agencies is also adding to the cost of
operations of the VEML.
o Customer activism – Greater awareness among customers have also put
environmental factors at the centre of VEML strategy. Customers expects
VEML to adhere to not only legal standards but also to exceed them to
become responsible stakeholder in the community.
o Waste management especially for units close to the urban areas has taken
increasing importance for players such as VEML.
o Renewable technology is also another interesting area for VEML. It can
leverage the trends in this sector. The Government of Mauritius is providing
subsidies to invest in the renewable sector.
Position Audit/Situational Analysis of VEML

Business Performance Review

The below revenue analysis has been computed to understand the company’s business health.
Table 1.0 Shows the business performance of VIVO Energy Mauritius Limited from year
2015 to 2021.

2015 2016 2017 2018 2019 2020 2021

Operating 335, 398, 350, 397, 444, 236, 375,
Profit 434 801 489 844 678 606 695
Profit for the 282, 311, 270, 309, 387, 173, 310,
year 627 573 431 820 991 002 145
Source: VIVO Energy Mauritius Limited Annual Report

Table 1.1 Business Performance of VIVO Energy Mauritius Limited

Figure 1.1 VIVO Energy Mauritius Limited Business Performance 2015-2021

From data gathered in the annual reports of the company, we noticed that even with a
continued challenging economic, VIVO Energy performed solidly ranging year 2015 to 2021.
Exception arises in 2017, where there was a decrease of Rs 41 million (-13%) compared to
year 2016. The difference is largely attributed to Marine product export volume loss and the
negative impact of exchange rate losses, due to the declining dollar versus the rupee. In
addition, there have been more players in Mauritius sea territory resulting in fiercer
competition, hence the company was not able to repeat or even increase the previous year’s
performance. Also, in 2020, we can notice a huge decline in performance mainly due to
COVID-19. However, we see that the company has been able to bounce back to reach more
than 2017 figures.

Strategic Business Units

VEML is involved in the below businesses in Mauritius

 Retail Sector (Retail Filling Stations)

 Business to Business Sector (B2B)
 Supply and Distribution (S&D)
 Marine Sector (Bunkering of vessel)

Below are the focus areas of development for VEML strategy for the next five years. The
strategies are based on long-term and short-term objectives as per below table.

Short Term Objectives

Short-term Strategies
objectives
Network  Fuel & Tactical Campaign
 Leverage on differentiated fuel (Fuel Save & Fuel economy platform)
through enhanced communication.
 Tactical campaign with improved features

Lubricants  Targeted Roadshows: support – Lubes technical sales team and having
VEML staff as ambassador.
Convenient  VISA: 6%, Other cards: 25%
Payment  Strengthen partnership with Mauritius Telecom for use of MT Money
Solutions to alleviate the percentage on use of VISA cards.

HSSEQ  Increase competency in HSSEQ of all employees

Table 1.2 Short Term Objectives of VEML

Long Term Objectives

Long-term Strategies
objectives
Network  Grow ahead of the industry (VIVO Energy Mauritius Limited 3% vs
2% for industry. Delivered through new sites plan for the next five
years.

Lubricants  Promoting new carbon neutral lubricants (Shell Helix lubricant)

Retail sites  Improve site & Service standards through (massive capex investment
to refurbish the different retail forecourt around the island.
 Performance reporting, Incentives (TM, QM & Site Staff) &
Recognition, compliance management, competent QM, Retailer & QM
engagement.
Convenient  Shell Card penetration: 32%-Awareness
Payment  Loyalty programme for year 2022-2027
Solutions
ESG  Educate local communities and help them adopt behaviours that will
(Environmental, safeguard the environment and improve energy efficiency and,
social, consequently, promote both a better quality of life and a sustainable
governance) future for individuals and businesses alike.

Table 1.3 Long Term Objectives of VEML

Impact on Stakeholders

Picture 1.5 Impact on stakeholder

Summary of VEML Business Analysis

5 force model analysis Value Chain Analysis Swot analysis / Pestel

High risk of new entrants to
enter the marine bunkering
market
Buyers have medium
bargaining power
The threat of substitute
products is high
The intensity of competitive
rivalry is high
Strong brand name
Reputation
Innovative products
Strong financial position
Concentrate on entering new
markets
Developing new products
Government moving toward
sustainability
Rising Freight Cost
Competitors in region
New governmental
regulation
High Operating Cost
New investment to be done
Customer Service Standard
Share holder issues.

Table 1.4 Summary of VEML Business Analysis

Using the 5 forces model, we can see that VEML faces several challenges. There is a high
risk of new entrants, as many companies are looking to enter the marine bunkering market
with products that compete with VEML. Buyers have medium bargaining power because
they do not have many options when it comes to purchasing a new product, primarily for the
retail and B2B markets. Supplier bargaining power is medium because VEML has many
suppliers from which to choose, and the STC, as the sole importer of the local petroleum
product market, relieves VEML of this threat burden. Because there are so many products,
the threat of substitute products is high. The threat of substitute products is high, as there are
many products on the market that can be used in place of VEML product. Finally, the
intensity of competitive rivalry is high, as there are many companies that are vying for market
share.

When we apply the value chain analysis to VEML, we can see that the company engages in a
variety of activities to create value for its customers. Inbound logistics, operations, outbound
logistics, marketing and sales, and service are examples of these activities. Each of these
activities adds to the overall value provided by the company to its customers.
Based on the foregoing analysis, VEML possesses several advantages that it can leverage
over the next five years. However, the company will face a few challenges that must be
addressed. The company's strengths, such as its strong brand name and reputation, innovative
products, and strong financial position, should be highlighted. Furthermore, the company
should concentrate on entering new markets and developing new products.

According to the SWOT analysis, it can be said that VEML have been able to identify the
Strength, Weakness, Opportunities, and threat of the company. Having done a SWOT
analysis this does not mean that VEML just need to tackle the Threat and Weakness and
VEML will be on the safe side, and we will be the best company in our field. To be able to
tackle mainly our Treat and Weakness a PESTEL analysis was done to help in determining
our future strategies. When VEML compare Threat & Weakness V/S PESTEL the main
issues are mainly linked to Governmental Regulation which is not in our hand. For example,
Government moving toward sustainability, rising freight cost which government cannot do
nothing, high operating cost. It can be said that the government regulation is playing more as
a domino effect for the threats and weaknesses. VEML has several strengths that it can
leverage over the next five years. Its strong brand name and reputation, innovative products,
and strong financial position are among these. However, the company has some flaws that
must be addressed, such as high prices and reliance on key personnel. Furthermore, as the
company develops its strategy for the next five years, it must be aware of several
opportunities and threats.
Conclusion and recommendations
According to the situational analysis computed in this assignment, VIVO energy can opt for
co-petition rather than competition, because in the long term it may be difficult to compete
with the different competitors in the oil market. Also, since recently there is no Tax on
electric vehicles need to move toward giving more electrical pump stations by making the
retail stations autonomous with solar panels systems to be aligned with government strategies
for 2030. On a short-term strategy, it will be ideal to capture customers from competitors by
doing promotional marketing due to restricted oil market, for instance, Rs 1000 of petrol you
get Rs 100 voucher at KFC to leverage customer satisfaction. Since VIVO energy has
adopted a differentiation strategy with the sales of strong Shell branded products, they may
require changing this strategy to cost leadership to improve its market sales in the long run.
Some possible long-term strategies would be to move toward sustainability with low impact
to the environment and since freight cost is not yet stabilize, the company need to increase
storage capacity to reduce transportation cost by bringing more product at once.
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