THE ANALYSIS OF PORTER'S FIVE FORCES MODEL ON THE EXAMPLE OF PETROLEUM PRODUCTS RETAIL INDUSTRY IN CROATIA

The liberalization of retailing market of petroleum products in Croatia is proceeding slowly, with the increase of the number of foreign and new participants who are engaged in the market. The majority part in the control of fuel still belongs to the State monopoly which is characterized by stable presence of state limitations and wide and relatively inefficient retail network. The market is dominated by the home-company INA, Plc, but the foreign participants (OMV, MOL, Petrol) succeed in getting new attractive locations. Therefore, although INA, Plc. has a long-term presence, the rivals are in the position to use the shortcomings in the planning of retail network, deep-rooted in the approach "quantity before quality", which is a characteristic of the previous monopolies owned by the State. The main goal of this paper is to analyze the attractiveness of the Croatian industry of petroleum products retailing using Porter's Five Forces Model, and to identify the key factors necessary for the success of the same industry. Analysis done in this paper is useful in recognition of company's real strengths and weaknesses, setting up the frame for company's positioning in oil & gas industry and recognition of fields in which strategic changes would bring the greatest benefits. More detailed analysis of the structural determinants of the Porter's model shows the level of danger caused by the entrance of new competitors and high intensity of rivalry among market players in the oil product retailing sector in Croatia. Customers' bargaining power and risk of substitute products is low, while the negotiating power of suppliers in oil product retailing sector in Croatia arc intermediate.