Introduction Shell is one of the largest companies in the global oil and gas industry. The company focuses on production and distribution of petroleum, engine oil, and lubricants. The company has over 87,000 employees and operates in more than 130 countries (Shell 2014). Shell has over 70 years of experience in the manufacture and distribution of high quality engine oils and lubricants. In 2012, the company’s revenue totaled $467 billion, whereas its net income was $27 billion (Shell 2014). This paper will analyze the competitive environment of Shell in the UK. The analysis will begin with an overview of the company’s products and the relevant market in which they are sold. This will be followed by analysis of the demand and supply characteristics of the market. The market structure and the possibility of expansion will also be analyzed. Based on the analyses, recommendations will be made to enable the company to improve its competitiveness. Product Background Shell has three main brands of engine oil and lubricants namely, Shell Helix, Shell Rimula, and Shell Advance. Shell Helix oil and lubricants are used in cars and medium-sized trucks (Shell 2014). The products were developed nearly six decades ago through a partnership with Scuderia Ferrari’s Formula One team. Shell Helix was developed to clean car engines, to reduce friction, and to alleviate wear. The oil has superior cleaning capabilities that enable it to clean car engines while they are in use. As a result, it is able to eliminate more dirt and sludge than most of its competitors. Shell Advance oil and lubricants are used in motor bikes. The oil is used to clean bike engines, whereas the lubricants are used to lubricate the gearbox and the bike chain. Shell Rimula oil and lubricants are used in heavy-duty diesel engines (Shell 2014). Their superior cleaning and lubricating properties help in improving the performance and durability of diesel trucks. Lack of restrictive regulations in the oil and lubricants industry enables Shell to collaborate with lead-users to manufacture products with advanced capabilities. Customers prefer Shell’s products because they help in reducing carbon emission, thereby conserving the environment. The Relevant Market Product Market The relevant product market refers to the category of goods and services that consumers can use as substitutes. The products are selected by customers based on their use, price, and quality (Taylor & Weetapana 2011, p. 45). The UK market consists of engine oil and lubricants that are manufactured using fossil fuels (crude oil) and those that are produced using vegetables. The vegetable-based oil and lubricants provide excellent functionality in terms of lubricating and cleaning car engines (Lee 2007, pp. 132-136). However, their capabilities tend to reduce in environments that are characterized by high heat, pressure, and metal catalysts. This weakness limits the application of vegetable-based oil and lubricants in modern car engines. The petroleum-based oil and lubricants also have excellent cleaning and lubricating capabilities. In addition, they can withstand high pressure and heat in modern car engines. However, their contr