Exxon Mobil Situation Analysis
The situational analysis of Exxon Mobil is based on the different external and internal aspects that can provide details regarding changes that have taken place and their impact on the overall organizational operations. The reputation, size and levels of investments made by the company are major aspects that are considered to be a part of the situational analysis. The strengths and the weaknesses of the company and the strategies that have been developed for maintaining future operations are also discussed as a part of the situational analysis process. The difficulties that are faced by the company based on their international operations in different parts of the world are a part of the situational analysis framework. The other aspects that are a part of the situational analysis include research and development, rational segmentation and the diversification of products.
Industry Structure and economic feature
The oil and gas industry is mainly considered to be the biggest sectors within the world based on dollar value and thereby generating around 5 trillion dollars as global revenues in the year 2022. Oil is considered to be a crucial part of the economic framework on a global basis as it impacts transportation, electricity, manufacturing and industrial production. The investors in various parts of the world have shown their interest towards entering the industry of oil and gas. The production process of oil and gas is considered to be a multi-stage method that is quite complicated in nature and has an impact on the strategies being implemented by the organizations.
Exxon Mobil Strategic
Business Level Strategies
The business level strategy that has been implemented by Exxon Mobil is mainly based on working towards the creation of sustainable solutions that can improve the quality of the lives and meeting the evolving needs of the society. The organization mainly aims at protecting people, the communities and the environment within which it is operating. The business strategy of the company is focussed towards the core competencies that include the strong research and development platforms, product diversification, economies of the scale and vertical integration. Business level strategies of Exxon Mobil have been effective for the company as it aims at providing value to the customers and thereby gaining the competitive advantage by exploitation of the core competencies.
Corporate Level Strategies
The corporate plans and strategies that have been implemented by Exxon Mobil has aimed at supporting the potential cash flow, reduction of emissions and doubling the earnings. The organization has planned to spend around 15 billion dollars on the reduction of the emission of greenhouse gases. The plans are also support the corporate level strategy formed by the company that is mainly related to the structural cost savings, investments in the low-cost supply and the lower-emission products. The plans related to capital investments that can be made by Exxon Mobil are also a major aspect of the corporate level strategy of the organization.
Competitive Analysis and Advantage in the industry
The total revenues reported by Exxon Mobil had increased in third quarter of the year 2022 by around 51.89 percent each year. Revenue growth of the company was lower in comparison to its competitors and average growth had been 53.61 percent. Net margins gained by the company were 18.02 percent and profitability levels of Exxon Mobil were lower in comparison to other firms. Exxon Mobil thereby faced major levels of competition in the industry due to which its revenues and profit margins have been low and the competitiveness in the environment had also increased. The major competition that is faced by Exxon Mobil is mainly related to the purchase or sales of the required services and goods in various international and national markets.
SWOT Analysis
Strengths
The diverse brands like Coolanol, Esso and Speedpass that operate under umbrella of Exxon Mobil are a part of the various areas within the energy industry. The reputation and brand name developed by Exxon Mobil are based on the expertise and experience of the individuals. The research and development activities being performed by Exxon Mobil are a major strength of the company that enhanced its technologies and has decreased the carbon footprint developed in different parts of the world. The wide range of the consumer products being offered by Exxon Mobil also prove to be strength of the company.
Weaknesses
The social impact of oil companies towards increase of pollution in the environment is a huge weakness faced by Exxon Mobil. The net losses of the company in 2020 have proved to be a weakness of the company. The strong policies and government regulations are able to influence the operations and efficiency of Exxon Mobil and it is a weakness that is being faced by the company. The issues related to ethics and human rights have led to various lawsuits and have provided allegations towards violations of the human rights.
Opportunities
Exxon Mobil can gain the opportunity of implementing the strategies related to net zero emissions that can reduce its impact on the environment. Exxon Mobil can also form its positive image in the industry by using this opportunity. The increase of green demand and enhanced global expansion related to entry into the new countries and locations is considered to be an opportunity being faced by the company. The opportunity related to sustainable development is also an important aspect that can improve the position of Exxon Mobil in the industry.
Threats
The lawsuits faced by Exxon Mobil in different markets is a major threat that has influenced its image in the industry. The climate changes and increasing demands for eco-friendly fuel is also threat related to the business operations of Exxon Mobil in the industry. Political volatility and intense competition are other threats being faced by Exxon Mobil in different markets and countries.
PESTLE Analysis
Political factors –
Exxon Mobil has its operations in various countries and the government policies and capacities are different based on which the company can aim at developing the strategies. The political unrest in different companies can affect the operations and revenues of the company.
Economic factors –
Economic aspects can affect the operations and decisions made by Exxon Mobil and the countries that offer high rates of interest can attract the firm for making investments. Covid-19 pandemic has increased uncertainties in the environment and this has a negative influence on revenues of the company.
Social factors –
Social factors that are mainly based on the cultural aspects and norms can influence the types of products that can be offered by Exxon Mobil. Changes in consumer behaviour of the customers of Exxon Mobil is a major social aspect that can influence the strategies and sales of the products.
Technological factors –
The technological advancements in the different countries have increased the importance of social media for marketing and promotional activities of Exxon Mobil. The demands of consumers are also influenced by the shifts in processes and advancements that have taken place in the systems of energy storage.
Environmental factors –
The growth in concern related to global changes in climate and increase in levels of pollution are considered to be major environmental aspects that influence the strategies of the company.
Legal factors –
The laws related to anti-discrimination and human resources influence the strategies of Exxon Mobil. The strict regulations and rules that are a part of various countries have an impact on the profit margins or revenues of the organization.
Target Market Analysis of Exxon Mobil
Demographic Characteristics of Market
The customers of Exxon Mobil belong to various age groups who require the high-quality oil-based products.
Psychological Characteristics of the Market
The psychological characteristics of the target customers of Exxon Mobil are related to their personality and the overall emotional state depicted by them towards the products being offered to them.
Behaviours of the Target Market
The target market of the company is focussed on the oil products.
Strategies Appealing to Market
The growth strategy of Exxon Mobil appeals to the market.
Marketing Mix of Exxon Mobil
Product Strategy (Product Mix)
The various business units that offer products under the name of Exxon Mobil include deepwater, unconventional, liquified natural gas or LNG. Value chain of the company aims at exploring, development, marketing and production activities.
Pricing Strategy
The prices of products offered by Exxon Mobil are influenced by the taxes, production levels, demands and the government policies. The wide range of the products that are offered by Exxon Mobil are thereby priced based on the demand levels and the production costs.
Promotional/ Advertising Plan
Exxon Mobil is considered to be a well-known brand in petrochemical industry and the overall global presence has been effective in enhancing the sustainable operations of the business. Investments made in CSR and digital marketing activities are an important aspect of the promotions.
Exxon Mobil Competitive Analysis
4Ps’ comparisons with competitors –
Product –
Similar products are offered by the competitors of Exxon Mobil and are able to fulfil needs of customers.
Price –
Competitors of Exxon Mobil have implemented similar pricing strategies for gaining revenues in the industry.
Place –
The distribution and supply chain of the competitors are more effective in comparison to the distribution of Exxon Mobil.
Promotion
The promotional activities of the competitors are able to provide major levels of revenues to them and have reduced the profits gained by Exxon Mobil in the highly competitive industry.
Strengths’ comparisons with competitors
Research and development are done by competitors.
Weaknesses’ comparison with competitors
Lawsuits are not always faced by other companies.
Organization’s Competitive Advantage
Competitive advantage of Exxon Mobil is based on large portfolio of products.
Key success factors
Success factors of Exxon Mobil are based on prices of the products.
Financial Analysis
The revenue growth of Exxon Mobil is higher in comparison to the competitors.
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