BP's Solar Business Model - A Case Study on BP's Solar Business Case and Its Drivers

The Dilemma of Incumbents in Sustainability Transitions: A Narrative Approach

“…In 2000, BP launched a re-branding campaign with a new logo and the slogan 'Beyond Petroleum', a very radical translation of external demands for a more sustainable energy system into BP's corporate mission and narrative. In fact, BP had already been active in the solar industry since the early 1980s with its subsidiary BP Solar, a major player in the global photovoltaics sector with market shares reaching up to 20% [86]. In-depth case studies and analyses of other forms of official communication by BP beyond the overall brand claim [86][87][88] have shown that the newly emerging corporate narratives are not only proactively focusing on sustainable energy futures, but rather evolve from a more defensive logic of avoiding risks related to societal demands, guaranteeing safety and protecting the license to operate, especially after large oil spills, such as the one caused by the Deepwater Horizon incident, and diversifying in the face of decreasing growth of the industry as a whole.…”

“…. ' was a phrase commonly employed" [86] (p. 311). However, translation is a two-way process, and BP's re-branding strategy showed only limited success as regards public perception: the new slogan 'Beyond Petroleum' was largely met with skepticism, and BP was accused of greenwashing time and again.…”

“…However, translation is a two-way process, and BP's re-branding strategy showed only limited success as regards public perception: the new slogan 'Beyond Petroleum' was largely met with skepticism, and BP was accused of greenwashing time and again. With a change in CEOs in 2007, the rhetoric in official reports re-focused on BP's oil and gas business, and BP Solar was shut down in 2011 [86].…”

“…In order to remain credible, BP Solar had to be developed as a core business unit that could compete with other business units of BP. This goal was pursued quite successfully for more than 30 years, but when the solar business as a whole became more competitive, BP Solar was eventually closed in 2011 [86]. The example of BP shows how an internal dilemma is not being solved by introducing a new narrative ('Beyond Petroleum') that suggests fundamental change when the actual gap between core activities, e.g., in the fossil industry, and a completely different field, such as renewable energies, is too large.…”

“…When looking at actual strategies and product portfolios of car manufacturers today, the 'old' automotive industry still seems to be relatively stable [55,110]. Similarly, one conclusion from the case of BP is that "a company spending hundreds of millions of dollars on a rebranding campaign ('Beyond Petroleum') would also invest hundreds of millions in its solar business just to pretend it is committed to building a sustainable energy future" [86] (p. 322).…”