Porter’s Five Forces suggest that “barriers to entry” prevent the successful  emergence of businesses into a certain industry. One of the barriers to entry is expected retaliation, which is becoming increasingly problematic for many industries as our generation evolves.

As one of the largest industries in the world, oil manufacturers are faced with persistent retaliation from environmentalists. Unless oil manufacturers are able to juggle environmental friendliness with profitable extractions from Mother Earth, they’ll be having one tough time going about their business – just like Shell.

Last week, Shell’s lawsuit to ban the protest of Greenpeace environmentalists against Shell’s Arctic drilling program was rejected by a Dutch court. This acts as a setback to not only Shell for its future plans but for the power of the oil industry. Nowadays, oil manufacturers must consider the consequences of their actions beyond the aspects of business – there are a variety of environmental and social expectations that determine the reputation of the industry, under the sharp judgement of the entire world.

The outcome of this tug-of-war between Shell and Greenpeace will signify many things. Which emerging power has the greatest influence  – the industry or the voice of the community?

Sources:

Porter’s Five Forces: http://www.quickmba.com/strategy/porter.shtml

Shell loses suit against Greenpeace (Photo): http://www.cbc.ca/news/business/story/2012/10/05/shell-greenpeace-protest-suit.html

Shell website: http://www.shell.com/

Greenpeace website: http://www.savethearctic.org/

Shell in the Arctic: http://www.shell.com/home/content/future_energy/meeting_demand/arctic/?gclid=CPPltqad8bICFURxQgodQA4Alg