ExxonMobil SWOT Analysis Case Study Example
Exxon Mobil Corporation ( aka ExxonMobil) is an American multinational oil and gas conglomerate. Headquartered in Texas (Irving), ExxonMobil got formed by the merger of Exxon and Mobil. Incorporated in New Jersey, ExxonMobil acquired brands like Esso, Mobil, and ExxonMobil Chemical. In 2016, ExxonMobil was among the top three enterprises in Fortune Global 2000. Fortune 500 ranked ExxonMobil among the top 10 most profitable brands.
BlackRock, Vanguard Group, and State Steel Corporation are the Stakeholders of ExxonMobil. The institutions contribute 55.6% of the share. When ranked from oil and reserve aspects, it ranks 14 and contributes less than 1% of the total. ExxonMobil is the seventh-largest refiner worldwide. It has 37 refineries across 22 countries that have a refining capacity of 6.3m barrels.
By 2016, it had about 73500 employees working for the company. SWOT analysis combines strengths, weaknesses, opportunities, and threats facing ExxonMobil. Like its competitors, the oil and energy company has to consider factors. It needs to plan about formulating long-term and short-term strategies.
Being the largest refinery has its advantages. ExxonMobil has a strong financial backing and utilizes its resources on projects. It includes deep water, conventional and heavy oil, shale, light and LNG gas, sour and Artic gas.
Strength of the Enterprise
- Strong Reputation: ExxonMobil has a reputation for being an industry leader. It retained fame for the past one hundred years. It developed a sense of accountability, security, and trust among its client base.
- Extensive portfolio: The company expanded its portfolio, entering new market segments. Likewise, it added new brand names to the portfolio. Diversification strategy well-served the enterprise.
- Industry Leader: ExxonMobil is one of the largest refineries all over the world. It operates in the majority of the countries. It explored the continents for crude oil distribution. By 205, it had 23 refineries in 14 countries and a distillation capacity of 135000 gallons/day.
- R&D project undertakings: ExxonMobil undertakes several R&D projects. It helps them to maintain their position in the market. It gained identity for its product innovation and segment formation. The company tends to improve bitumen recovery, cut waste of water. It needs to reduce greenhouse gas emissions, use solvents to access leftover resources.
- Wide Coverage: Unlike its competitors, ExxonMobil doesn’t depend on one /two countries. The global market expansion helps it to generate revenue. It gives a competitive advantage in the market. ExxonMobil operates over countries like Germany, Singapore, France, Italy, and more. It has customers from the US, UK, Canada, and Belgium.
Weakness in the SWOT analysis
- ExxonMobil got charged for not doing much for the environment. The shareholders are accusing the company of polluting the environment, emitting greenhouse emissions. It got accused of overusing the resources too high to meet the changes.
- ExxonMobil could not develop as many resources as it could. It continues to focus on oil as one of the main sectors. It won’t help the company to sustain and maintain its reputation in the long run.
- The ongoing profitability of ExxonMobil with increasing petrol prices positioned the company in the minds of petrol buyers and stakeholders as a voracious corporate giant. Customers re not liking the idea that the conglomerate continues to make profits. The increased profitability does not well with its customers.
- The business faces tough competition from its competitors. It caused a massive decline in profits and revenue generated by the enterprise.
- The company got involved in several litigations and lawsuits. The company agreed to pay $226 million as the settlement with the NJ trial that involved pollution and contamination of refineries. Litigations cause harm to the company’s reputation and result in losses.
- Rising demand for fuel: There is a marvellous opportunity for the companies to meet the rising demand for crude oil and energy. Developing countries of South East Asia, Asia, the Middle East, and South Asia have a demand for resources.
- Increase production: If the company can develop energy sources faster than its competitors, ExxonMobil has the opportunity to establish itself as an industry leader in the energy markets. It will add value to the brand.
- Diversify its portfolio: ExxonMobil works with a plethora of brands, so it can develop strategies in form of product and brand extension. It can diversify its product portfolio, shifting its focus from fossil fuels and oil.
- Rise in LNG Demand: By 2042, nearly half of the demand for natural gas will be met by LNG. ExxonMobil should be ready for this change so that it can start commercial sales, and maximize the opportunity.
- Economic Recession: Developing countries like India and China are going through economic recession, and are looking for alternative energy sources. Environmental organizations are demanding lower carbon emissions. It exerts pressure on ExxonMobil, increasing operational expenses and minimizing profitability to develop alternative energy at faster rates.
- Accountability: Stakeholder groups demand accountability of part of ExxonMobil. They’re forcing the company to follow a more transparent policy and CSR level.
- Increasing competition: Competitors are developing alternative energy sources. It enables them to meet the demands of the stakeholders. It compels the company to revise its business strategy. If it doesn’t do so, it won’t be able to maintain its profitability.
Get Help with Your ExxonMobil SWOT Analysis 2020 Case Study Assignment in the US.
Are you looking for case study solutions? If you need help with projects, reach out to us today. We have a dedicated team of writers with years of experience providing strategic marketing assignment help. We offer one-stop solutions for assignment help services.
We help you with all categories of assignments including essays, dissertations, research papers, case studies, and more. We are aware of the fact that more than 50% of our clients are learners. Students often say – I’ll pay to write my essay, or do my assignment so that I can get good marks.
To have a fair idea of the quality of our writers, have a look at our Royal Dutch Shell Case Study, Apple Inc,
Abbott Risk Consulting Ltd business case studies and SWOT analysis samples. On-time submission, instant response to requests, and plagiarism-free essays helped us to establish ourselves as the best essay help website.