Abstract
The UK petrol market is facing an onslaught by the grocery hypermarkets. The question is what strategies could oil companies adopt? We trace the reasons behind the dissipation of competitive advantage and why petrol companies have failed to regain competitive advantage. We suggest a framework which provides an opportunity to re-establish competitive advantage through: attention to augmented features of petrol dispensing—pump design, site layout and payments methods—offering scope for product differentiation; re-positioning of petrol consistent with today's consumer needs and exploiting the innate strengths of petrol companies. © 1998 John Wiley & Sons, Ltd.
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