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ExxonMobil Business Model
Transcript of ExxonMobil Business Model
contract with Nova Scotia Community College to develop a platform operations training program
Helped establish NACME, for scholarships to minority engineering students
Worked with USAID and Kazakhstan Loan Fund to establish an Enterprise Development Center to train women in strategies for entrepreneurship Key Partnerships ExxonMobil partnered with many organizations who sponsor educational programs for women and minorities
Strategy: financially aiding talented people who lack support, to help them excel, thus encouraging them to be biased in favor of ExxonMobil when they enter the workforce. Key Partnerships ExxonMobil partnered with Rosneft to operate drilling projects in Western Siberia together.
Arctic Research and Design Center for Offshore Development
ExxonMobil cooperates with OPEC for a larger oil supply, but there is a lot of friction between OPEC and the West. Ex.: Venezuela conflict
Worked with Toyota and Mercedes teams to develop Toyota’s Formula 1, a high performance lubricant
Also worked with Airbus, Boeing, and Bombardier to develop oils and lubricants for their aircraft
Other partnerships: Ford, General Motors, Caterpillar, Porsche Key Partnerships Refining, research
80% of Exxon’s refineries are combined with chemical or lube operation. Combining these create competitive advantage.
Supplying their customers with superior gas and lubes are major priorities of ExxonMobile Key Activities Cont. ExxonMobil researches methods of producing more efficient fuels
ExxonMobil is the leading supplier of jet fuel and lube basestocks Key Activities Revenue comes from recurring payments
Customers are willing to pay for quality and variety of products
Products are sold for public, military, and aviation use
Dynamic Pricing Revenue Streams Advertising
Negotiating for rights to drill
Scholarships Costs Value-driven business model
Fixed vs. Changing costs
Economies of scale Cost Structure Human
Includes: Chairman/CEO-R. W. Tillerson, VP/Treasurer-R. N. Schleckser, VP/Human Resources-M. A. Farrant, and VP/Safety Security Health and Environment-J. J. Woodbury
Professionals in advertising and marketing, lawyers, managers, engineers, accountants, and foreign relations experts
Stockholders, banking Key Resources Physical
Products: oil, lubricant, gas, convenience store merchandise
Transportation: trucks, ships, cargo planes, executive aircraft, employee cars
Equipment: gas stations, pumps, office buildings, storage centers
Brand names: ExxonMobil, Exxon, Mobil, Esso
Formula compositions and qualities
Agreements, partnerships, and contracts with partners Key Resources Approximately $1 billion spent on research, development, and technology applications
Constant research takes place to improve products and methods of production
Developed catalytic cracking-process by which more gasoline can be converted from oil per barrel
Partnered with Toyota Formula 1 race team to improve performance fuel and oil
Currently developing alternative sources of energy for the future Cutting Edge Technology Exxon Mobil is the top publicly traded oil company in the world
They sell $400 billion in products
Profit usually comes in around $40 billion
Due to large presence, Exxon must do everything in their power to maintain their image Brand/Status What kind of value do they deliver to their customer?
Value Propositions that Exxon Mobil offers:
Usability Value Propositions Their gas stations
Exxon, Esso, and Mobil
Diesel and non-diesel
Exxon supplies 42,000 service stations, 700 airports and 300 marine ports
On The Run, Esso Express Channels Advertising
Television, formula one racecar, and radio
ExxonMobil refineries are located world-wide.
Exxon optimizes a global logistics system that includes:
Ownership interest in crude oil and petroleum-product tankers
Over 25,000 miles of pipelines
300 major petroleum products terminals Channels Cont. With 42,000 locations, their stores arenot difficult to find
There is also an iPhone application called “Exxon Mobil Fuel Finder”
Designed to help customers more conveniently find stations
Customers can order a Speedpass that allows them to not have to pay with cash or card
Specific to Exxon gas stations
Many offer carwashes Convenience and Usability Although research and development costs can be high, it is still useful to the customer
New technologies keep production costs low and improve efficiency with new and improved methods
With creating similar products, Exxon has been able to combine factories
Roughly 80% of production facilities manufacture multiple products Cost Reduction Whom do we serve?
A Segmented Market is justified because of the diverse needs of these customers Self-service
Specialized organizations for each customer segment that can be contacted by phone, email, or mail Customer Segments Customer Relationships http://www.rosneft.com/news/pressrelease/18062012.html