Porter’s Five Forces

Industry force	Strength			Justify your determination with examples
Industry force	High	Medium	Low	Justify your determination with examples
*Example*		x		This is why I believe it is medium.
The threat of new entrants			X	Chevron is not worried about new market entry thanks to significant barriers. Entering the oil and gas industry requires massive financial resources and strict government compliance that drives away new entrants. Further, existing brands like Chevron are too strong to be affected by new entries.
Power of buyers			X	The bargaining power of buyers is low because the government fixes the prices of petroleum and related products. Additionally, the cost of switching from one buyer to another company is significantly low, and the market has many buyers. Thus, a move by one consumer has no significant effect.
Power of suppliers			X	The threat of suppliers is low because many suppliers characterize the gas and oil industry. They have no dominant position in the market, and stiff competition exists among them. In this case, Chevron is the price for the suppliers to compete for. Notably, this is so because companies like Chevron order high volumes and bulk, which cannot be satisfied by a single supplier.
Power of substitutes	X			The threat of substitutes is high because established companies like XTO Energy, ExxonMobil, and BP operate in the market. Further, all these companies face a substitute in the form of energy preferred in the wake of renewable energy efforts, and people consider it a substitute for electricity.
Rivalry among competitors		X		The competition between existing firms is considered to be medium. Notably, this is so because the government highly regulates the petroleum and gas industry to the extent that the government sets prices. Further, the presence of many customers allows each company to have a good market.
Complements		X		Chevron has complementary car manufacturing companies. Notably, this is so because car buyers are also customers of Chevron. Most car manufacturers are shifting to making electric cars. However, the number of manufactured electric vehicles is still low; thus, the threat is medium.
References: Guo, J., Long, S., & Luo, W. (2022). Nonlinear effects of climate policy uncertainty and financial speculation on the global oil and gas prices. International Review of Financial Analysis, 83, 102286. Li, M., Trencher, G., & Asuka, J. (2022). The clean energy claims of BP, Chevron, ExxonMobil, and Shell: A mismatch between discourse, actions, and investments. PloS one, 17(2), e0263596. Tang, H. (2018). Oil and Gas Firm-Specific and Macroeconomics Determinants of Liquidity Risk (Chevron Corporation). Available at SSRN 3301996.