<p align="justify">PTT PLC- Public Limited Company is the state-owned listed Oil and Gas company in Thailand. The company was formerly known as Petroleum Authority of Thailand. PTT PLC owns submarine pipelines of gas in Thailand and network of the LPG terminals. The company is also involved in electricity generation, exploration and production of oil and gas, gasoline retailing, and petrochemical products. The affiliated companies are PTT global chemical, PTT production and exploration, PTT green energy and PTT Asia Pacific mining. The company is ranked in the Fortune global 500 companies. It sets its goals and targets and achieve it with rigorous hard work (PTTPCL, 2019).</p>
<p align="justify">PTT PCL is one of the leading companies in the industry of oil and gas. It is necessary for the company to consider the competition level in order to maintain its position in the market. Porter Five forces analysis will help the company in determining it external analysis. This will ease the strategic decision making of the organization. Here is the detailed Porter Five forces analysis of PTT PCL;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">Bargaining power of consumers in the oil and gas industry is low to moderate. This is mainly because of the availability of other oil companies providing the same services. The switching cost is low, which makes consumer switching to other product is easy. Moreover, oil and gas industry have no such differentiated product. Multiple choices are available to the consumers which makes the company to set prices according to consumer power. Furthermore, there are both local and multinational companies serving best quality products. It is necessary for PTT PCL to make huge customer base and provide good quality services. It should also diversify geographically to mitigate the risk (Malik, 2018).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">There are many oil and gas companies operating in the industry to a large level. Both local and multinational companies are expanding geographically. Much of the oil and gas businesses are dominated by the powerful companies like PTT PCL, Shell, etc. They require pipelines, equipment, drilling machines, etc. Hence, the more specialized the raw material will be, higher will be the suppliers bargaining power. However, in case of PTT PCL, the company itself integrated backward. It is operating in the exploration and production of the oil and gas. Thus, facing the low bargaining power of suppliers (Issuu, 2018).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">PTT PCL is facing low level of threat from the new entrants. This is mainly because of the high requirement of capitalization in the industry. Oil and gas companies need high initial capital in order to operate as it needs equipment, drilling, reserves, etc. The new entrants have to face the strict rules and regulations set by the government in order to operate. Moreover, new firms have to face the intense competition from the big companies who are leading the industry. New marketing strategies, network, distribution channels, supplier relationship, etc. are important for the new firms which are difficult to build (UK essays, 2018).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">The substitute products are increasing in the industry of oil and gas. Many people are switching to biofuels, solar power, and other alternatives, as oil reserves are limited. However, people can not switch to other resources completely, because oil and gas are necessity. Hence, the threat of substitute products is moderate for the PTT PCL. The company has also diversified itself in the electricity generation for mitigating the risk. This will help the company in long run. However, it should also diversify in solar and wind power because of the future demand (Malik, 2018).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The Oil and gas industry are highly competitive at global level. PTT PCL is facing the competition from both local and multinational companies. This is mainly because many international companies are dealing in e-commerce businesses. Thus, grabbing the local market of the countries. Some of the competitors are Shell, Royal Dutch, etc. PTT PCL is providing the services to huge customer base and providing best quality. Hence it is one of the leading companies in the industry (Issuu, 2018).</p>
<h2 align="justify">References</h2>
<p style="text-align: left;" align="justify">Issuu, 2018. PTT annual report, 2018. [Online], Available at: <a href="https://issuu.com/ar.ptt.si/docs/20190320-ptt-ar2018-en">https://issuu.com/ar.ptt.si/docs/20190320-ptt-ar2018-en</a>, [Accessed on: 9th December, 2019].<br />
Malik, T. 2018. Competitive Analysis of the Global Oil and Gas Industry using Porters Five Forces Model. [Online], Available at: <a href="https://www.researchgate.net/publication/332632145_Competitive_Analysis_of_the_Global_Oil_and_Gas_Industry_using_Porters_Five_Forces_Model">https://www.researchgate.net/publication/332632145_Competitive_Analysis_of_the_Global_Oil_and_Gas_Industry_using_Porters_Five_Forces_Model</a>, [Accessed on: 9th December, 2019].<br />
PTT PCL, 2019. About us. [Online], Available at: <a href="https://www.pttplc.com/en/about/Pages/About-PTT.aspx">https://www.pttplc.com/en/about/Pages/About-PTT.aspx</a>, [Accessed on: 9th December, 2019].<br />
UK essays, 2018. Michael Porter’s five forces: Oil industry. [Online], Available at: <a href="https://www.ukessays.com/essays/management/analysis-of-michael-porters-five-forces-management-essay.php">https://www.ukessays.com/essays/management/analysis-of-michael-porters-five-forces-management-essay.php</a>, [Accessed on: 9th December, 2019].</p>