Exxon Case

Exxon Mobile Case

Exxon mobile is a focused company. Their sources of income are natural gas and oil along with refinements.

Exxon is sensitive to the general environment. Pressures to acquire more reserves and oil fields don’t align with government regulations and negotiations. Working in multiple countries, Exxon is at risk to potential government policy changes and laws. Also new focuses on energy consumption and clean energy threatens Exxon’s future. Shifting perception of greenhouse gasses has driven industries and governments to start changing to cleaner energy and away from fossil fuels. This change directly reduces Exxon’s customer base and threatens its future. Exxon is threatened by its suppliers. With fewer and fewer sources of oil, Exxon is always looking for new reserves. Its competition holds more reserves than Exxon. Their reserves allow the competition to have steady supplies unlike Exxon which has an uncertain future. The rivalry among competition is weaker in the oil industry. Controlling organizations like OPEC manipulate production to control oil prices and maximize profits. Recently however, high oil prices have cause fracking to emerge as a new method of extracting oil. This method has driven down oil prices and reduced Exxon’s margins. Exxon should focus on its new fracking and alternative energy competition. Other oil companies are less of a threat to Exxon because of the similarity of their process, price, and product. New energy companies will supply the market with cheap alternatives and reduce prices.

Exxon is very efficient at refining. This aspect is strong compared to their competition. This allows Exxon to meet demands worldwide. Growing energy demand will ensure Exxon will use their capacity to its potential. Exxon can use their refinement to sell more than their competition, make more money, and finally purchase more reserves. Exxon needs to utilize their short term refining advantage over their rivals to grow stronger and...