Influence of Threat of New Entrants on Performance of Oil Industry in South Sudan.

A Paper by Benjamin Mel Bol based on his DBA Dissertation presented during the EAMARC Conference at USIU-Africa in November 2015This paper is based on one of my five DBA dissertation objectives. Topic of dissertation ‘THE INFLUENCE OF PORTERS FIVE FORCES ON THE PERFORMANCE OF OIL INDUSTRY IN SOUTH SUDAN. The Porters five forces are; Rivalry between firms, Threat of entry into an industry, Substitute products, Bargaining power of buyers and Bargaining power of sellers Globally, the number of industries differs with oil production. In 25 EU members states in 2013; 839 firms involved in oil and gas services. 322 companies were involved in direct extraction. 517 provided incidental services to exploration of oil and gas; - 286 in UK, 60 in Netherlands, 25 in France and 25 in Germany. Global multinationals involved in extraction, transport, refinement to wholesalers and retail trade are ExxonMobil, Royal Dutch Shell or BP, Total,and TexacoChevron or TotalFinaElf. (Brown, 2013; Grünig and Best, 2007). Africa is under utilized; six of the top 10 global discoveries by size of oil were made in Africa in 2013 (PWC, 2014). Reports shows capacity of oil-rich African countries have not been fully exploited and more international companies are increasingly investing in oil industry in Africa with Sonangol (Angola), Sonatrach (Algeria), Statoil (Norway), ONGC (India), PetroSA (Ghana), CNPC and Sinopec (China), Statoil, Gazprom (Russia) and CNOOC (China) eyeing Tanzanian (African Development Bank and Africa Union, 2009; PWC, 2014)