ance with its purpose” Von Clausewitz is the author of Vom Krieg(On War) in 1832.Dr. Micheal Porter, author of such books as Competitive Strategies and Competitive Advantage has this to say:“Essentially, developing a competitive strategy is developing a broad formula for how a business is going to compete, what its goals should be, and what will needed to carry out those goals.”Dr. Charles S.V. Telly defines strategy as:“An ever changing philosphy based on sound economic and financial principles which specifically analyzes the strengths and weaknesses of the corporation, the strengths and weaknesses of the competition, and the changing enviroment, and through various legal means gains a competitive advantage and realizes its goals.”Strategy is more clearly defined after reading these definitions. What we must take out of these definitions is the clear statement that a corporation must use strategy to become successful and to stay successful. The top down in the corporation must clearly know the strategy and must know their role in the corporation. Without this knowledge of the company’s strategy the company will surely fail.VI.Past AnalysisThreat of entryIn the beginning of the U.S. oil industry it was dominated by one company and it had an unfair advantage against its competitors. It was nearly impossible to enter the market. With the breakup of the Standard Oil Trust we started to see the rejuvenation of competition in the industry. The problem is the oil industry is mainly made up of who has the oil supply. As most of the oil supply was already found and being used. It would be hard for a new company to enter the market. Entrance would have to come from buying into existing companies or expanding through mergers.In the early years of the breakup, 38 companies competed against each other, and only the focused could survive. For the purpose of clearing up confusions I will use their current names to ...
