<p align="justify">The Phillips 66 Company is a multinational energy company in America. The company is headquartered in Houston, Texas. The company started as an independent venture in an energy sector. The company is excited about future of the energy. The company has a competitive edge over seasoned leadership. The company has many talented employees who are taking responsibility of adapting and exploring different opportunities in the market. The company is involved in fulfilling the needs of people by keeping its values, commitment, and honor for improving lives. The company wants to provide the energy that is important for the high standard of health and living across the world (Phillips 66, 2019).</p>
<p align="justify">The company is working to provide energy resources in the technologically advance country. The market of energy is very competitive, and hence require industrial analysis for the strategic decision making. Porter five forces model will help company in identifying the market analysis by focusing on the external factors in detail. The model has five main forces, which identify the threats and opportunities for the company. Here is the detailed porter five forces analysis of Phillips 66;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Bargaining power of the buyers is moderate in oil and gas industry. This is mainly due to the fact that almost all the companies operating in the industry are expanding or expanded itself at global level. This means they have provided the option to their customers to buy from them across the globe. this increases the options to the buyers and lowers their bargaining power. However, the switching cost is high, which makes the consumers think before taking decision (Phadael, 2015).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">Working in the oil and gas industry makes the companies supplier itself. The companies expand itself in different market for the integration. This helps them in gain access to the oil and gas reserves in the country. However, these companies also require few suppliers like machinery, equipment, labour etc for the exploration and operations. Thus, bargaining power of the suppliers is moderate in the oil and gas industry. However, Phillips 66 maintains very god relationship with its suppliers. It handles and manages efficient supply chain and gain much profit by cutting the costs (Pitatzis, 2016).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">In the gas and oil industry, threat of the new entrants is low. The barriers of entry are high, because of the requirement of high capitalization. The company also have to purchase patents, follow the strict rules and regulation set by the companies. The new entrants have to introduce new differentiated items in order to compete with the big giants in the market. The major oil and gas companies are operating in the industry since a long time. New entrants require new strategies, and immense marketing campaigns to capture the prominent market share. It is difficult for the new entrants to achieve the economies of scale (Phadael, 2015).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">Phillips 66 is facing high threats from the substitute products. This is mainly because of the new energy resources. Customers are looking forward for the consumption of fuel, solar power, wind power etc. These are the main substitutes of oil and gas. Moreover, people are using biofuels for transportation. This has chipped the crude oil companies and more discoveries has to be seen. It is necessary for the Phillips 66 to involve in the production of different energy sources in order to compete in the market (Pitatzis, 2016).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The competition among the rivals in the industry of oil and gas is moderate. This is mainly because of limited resources and reserves. Of in the industry competition will be high, production will be slowdown. This will happen because ever company wants to produce more to gain more consumers and influence the industry negatively. The competitors like Aramco, Chevron, Petro China are some of the competitors in the industry. Phillip 66 has to involve in producing different source of energy to retain the customers and maintain its position (Murphy, 2018).</p>
<h2 align="justify">References</h2>
<p align="left">Murphy, E. 2018. Phillips 66 porter five forces analysis. [Online], Available at: <a href="https://www.essay48.com/term-paper/12637-Phillips-66-Porter-Five-Forces">https://www.essay48.com/term-paper/12637-Phillips-66-Porter-Five-Forces</a>, [Accessed on: 4th December, 2019].<br />
Phadael, B. 2019. Phillips 66 case. [Online], Available at: <a href="https://www.slideshare.net/BeethovenPhadael/beethoven-phadael-phillips-66-case">https://www.slideshare.net/BeethovenPhadael/beethoven-phadael-phillips-66-case</a>, [Accessed on: 4th December, 2019].<br />
Phillips 66. About us. [Online], Available at: <a href="https://www.phillips66.com/about">https://www.phillips66.com/about</a>, [Accessed on: 4th December, 2019].<br />
Pitatzis, A. 2016. Porter’s Five Forces Model for Oil and Gas Industry. [Online], Available at: <a href="https://energyroutes.eu/2016/05/23/porters-five-forces-model-for-oil-and-gas-industry/">https://energyroutes.eu/2016/05/23/porters-five-forces-model-for-oil-and-gas-industry/</a>, [Accessed on: 4th December, 2019].</p>