Key to success ExxonMobil
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On November 30, 1999, ExxonMobil was established by the merge of Exxon and Mobil. This merged made ExxonMobil become the seventh largest company publicly traded company by market capitalization, ranked ninth globally in the Forbes Global 2000 list in 2016 and the world’s 10th largest company by revenue (Forbes, 2016). In 2014, ExxonMobil was named as the second most profitable company in the Fortune 500 (John Kell, 2015).
Researchers raised a reasonable question about the succeed of ExxonMobil. ExxonMobil was the largest non-government owned company in the integrated oil and gas industry where they contributed three percent of the world’s oil and nearly two percent of the world’s total energy. From a regional corporation, they became the largest trader of petroleum enterprise in the world. With 38 oil refineries in 21 countries, ExxonMobil become the biggest refinery of the world with 6.3 million barrels per day (SuccessStory).
In 2005, ExxonMobil became the world’s largest publicly held corporation based on the revenue. In 2007, ExxonMobil corporation’s revenue reached $404.552 billion with a net income around $40.61 billion. After one year, in 2008, ExxonMobil announced a revenue of $459.58 billion and net income of $45.22 billion which is one of the biggest annual profit of the U.S. corporate history. Since the announcement about the merged, Exxon shares increased 1.4% in the S&P 500 and 21% in the DJIA (Gregory Corcoran, 2010).
Global distribution network and strong brand name
The success of ExxonMobil has a huge impact of the global distribution network with a strong marketing strategy. A big global distribution network helps increases the capacity and distribution efficiency of ExxonMobil’s products to the market (BusinessWire, 2009). It also helps deliver ExxonMobil’s products to final customers in a shorter time and make them satisfy. This help ExxonMobil reduces the costs and increase the profitability of their products.
The long-established brand name of ExxonMobil makes customers very easy to recognize their brand image. Exxon has built a good relationship with customers along their history (BusinessTeacher, 2017). Because oils and gas production are commodities therefore it is better for ExxonMobil to build a good brand image which help increases customer loyalty and brand awareness.
ExxonMobil is one of the leading company in technology leadership which is resulted in exploring, refining and delivery of production. ExxonMobil gained the first step over their competitors in the industry with the commitment to the advance technology which is reducing time consuming and expenses in discovering oil. “ExxonMobil’s proprietary Fast Drill” is a new technology by ExxonMobil that made an important step in drilling operation (ExxonMobil, 2017).
ExxonMobil has an advantage over its competitor due to outstanding technology that reducing the costs on production and transportation (ExxonMobil). On the other hand, the most important advantage is their obligation and commitment to the technology. ExxonMobil believed that developing technology is a good way to get a competitive edge over their competitors. Exxon invested a lot of resources on Research and Development Department to manage the energy and increase positive impact to the environment. Furthermore, ExxonMobil has a huge advantage is their refineries which is 50% more than the average industry size (ExxonMobil). This made a competitive advantage for ExxonMobil by lower the site operation costs.