SWOT Analysis of ExxonMobil
ExxonMobil is one of the biggest oil and gas companies in the world. It produces and markets power, natural gas, and oil. It was established in 1999 with an aim to enable America to take a huge part in the production and oil and natural gas exploration. The biggest role in the success of the company is its marketing. They have targeted customers through their effective marketing. Let’s read the SWOT Analysis of ExxonMobil.
About ExxonMobil:
ExxonMobil is a famous US-based multinational oil & gas corporation. The name of the company derived from the merger of two companies such as Exxon and Mobil and Standard Oil Company. It usually takes part in the manufacturing and exploration of natural gas, power generation, petrochemicals, crude oil, natural gas, and oil products. In terms of revenue, the company always falls on the list of the top 5 largest companies in the US. There is no doubt about it that ExxonMobil is one of the big oil companies in the world and the largest refiner of oil.
Company Name: ExxonMobil
Founders: John D. Rockefeller
Founded: Nov 30, 1999
Headquarters: Irving, Texas, United States
CEO: Darren Woods (Jan 1, 2017-)
Type: Oil and Gas
Sector: Energy and Power
Tagline: Energy lives here
Unique Selling Proposition: One of the six world’s “supermajor”
Customers: Individuals, corporates, and countries looking to meet energy needs.
Target Consumers: Companies and people looking for energy, natural gas, and petroleum products.
Revenue: 285.6 billion dollars (2021)
Net Income: 23 billion dollars (2021)
Services and Products by ExxonMobil:
- Power generation
- Crude oil
- Petrochemicals
- Natural gas
- Oil products
Competitors of ExxonMobil:
- TotalEnergies
- ENGIE
- Valero Energy
- Chevron
- BP
SWOT Analysis of ExxonMobil
Strengths of ExxonMobil:
- Diversified Company:
ExxonMobil is such a diversified brand because there are several brands working under its banners such as Speedpass, On the Run, Esso, Coolanol, Mobil, and Exxon. Such diversity gives ExxonMobil a competitive advantage over others and makes it one of the biggest oil and gas corporations in the world.
- Brand Reputation and Name:
With over 150 years of experience, the ExxonMobil company has developed expertise in its sector. It has a strong foothold in the market and currently distributing oil and gas products to more than 14 countries on different continents such as Africa, Asia, Europe, South America, and North America. The main thing is that ExxonMobil has established a strong reputation and brand name in these markets or countries.
- Vertical Integration:
The brand has successfully indulged itself in the exploration of refineries, petroleum, and oil barrels. Moreover, they have divided their business into two categories, production and exploration of oil and marketing its products and brands. So, through vertical integration, they are enjoying the benefits of cost and quality control.
- R&D:
With every passing day, the company is trying to improve its technology and working structure. They are doing their best to reduce carbon footprint by introducing renewable and eco-friendly options. They are investing heavily in research and development in order to find ways to extract oil and gas with minimum effort. This kind of investment in research and development allows the company to reduce its expenditure and make it one of the most competitive companies.
- Discovering New Markets:
The track record of ExxonMobil is pretty good. They have ventured into new markets successfully and taking advantage of their quality and products. Moreover, they have satisfied their customers through their services and products. This has helped the company to create a non-stop stream of revenue. As a result, it is considered as the most reliable and experienced player in the oil and gas sector.
- Variety of Products:
The products and services of ExxonMobil are unlimited. Moreover, they have a range of consumer products from diesel fuel to gasoline, motor oil, and more. Indeed, with over 10000 fuel stations, the brand has consistently supplied petroleum products with convenient payment methods. They have also started the ExxonMobil Rewards program for customers in order to get their attention.
Weaknesses of ExxonMobil | SWOT Analysis of ExxonMobil
- Environmental and Social Impacts:
ExxonMobil is one of the biggest culprits for harming and polluting the earth and environment in the eyes of eco-conscious consumers. However, they are taking green initiatives, but they are not enough to reduce their carbon footprint to a major level. This kind of negative reputation is one of the crucial weaknesses of the brand.
- Net Income:
According to reports, the company faced a loss of approximately 22 billion dollars in 2020. On the other hand, the financial condition of ExxonMobil is not very stable, which predicts that there is something wrong. Its revenue and net income are declining according to the reports.
- Government Policies and Regulations:
The US government and other countries’ governments are imposing strict regulations on oil and gas products. Certainly, this thing has decreased the operational efficiency of ExxonMobil. These regulations and policies are one of the biggest hurdles to its success way.
- Controversies:
Controversies like oil leaks in different locations of the world are another major weakness of ExxonMobil. They are accused of damaging the environment and overall sustainability. Such oil leaks are also very dangerous for underwater creatures or marine life. In short, these oil leaks are destroying the ecosystem.
- Human Rights Issues:
Over the years, ExxonMobil has faced so many legal notices and lawsuits alleging human rights violations, rape, murder, and many other cases. Such lawsuits have been damaging the company’s overall reputation at a global level.
Opportunities for ExxonMobil | SWOT Analysis of ExxonMobil
- Net-Zero Emission:
There are so many opportunities waiting for ExxonMobil. They are planning to implement net-zero emissions by the end of 2030 in Permian Basin operations. If it becomes a reality, then ExxonMobil can improve its image in the eyes of consumers. Moreover, the success of this operation will also enhance ExxonMobil’s profitability.
- Economic Development:
Indeed, the rising demand for petroleum products, economic development, and consumer spending patterns are one of the major opportunities for ExxonMobil. Thus, these factors allow the company to expand its market value and capture new consumers.
- Growing Greener Demand:
The growing demand for eco-friendly or greener products is also creating several growth opportunities for ExxonMobil. The company can attract government contractors and the government to purchase its products.
- Worldwide Expansion:
When it comes to venturing into new markets, no one can beat the level of ExxonMobil. They are entering into new markets and successfully conquering them. As a result, they have already opened their fuel stations and offices in different locations of the world. In short, there are countless opportunities for ExxonMobil in different sectors and countries.
- Demand for Sustainable Development:
These days, people like to purchase eco-friendly and sustainable products in order to save the world. However, ExxonMobil is trying its best to develop greener products to get the attention of customers. It has been investing in research and development to develop greener products. Moreover, by developing greener products, the company can multiply its revenue flow.
Threats to ExxonMobil | SWOT Analysis of ExxonMobil
- Lawsuits:
In other markets, there is a chance that ExxonMobil can face lawsuits and legal actions due to the different trade rules and liability laws. The regular fluctuation in standards can also jeopardize the performance of the company in different markets.
- Eco-friendly Products:
The company is mainly relying on its oil and gas products. If the culture of sustainable and greener products increases, then it automatically decreases the profitability and sales of ExxonMobil. As a result, the company can experience serious loss, which directly impacts the financial report of ExxonMobil.
- Climate Change:
The demand for petroleum and energy products is growing day by day, so it will also increase carbon emissions, which directly results in climate change. ExxonMobil is already under immense pressure to reduce its carbon emission for the betterment of the world. Even though they are finding ways to develop renewable and green energy, but they need huge investments and funds in these sectors, which is currently not possible for the company because its financial condition is also going downwards.
- Political Instability:
For companies like ExxonMobil, political stability is necessary in the region in which it operates. Overall, there is no political stability in some countries. Moreover, the bad thing is that governments and politics always surround oil and gas production. So, political instability could be fatal for the growth and expansion of ExxonMobil. These factors could pose grave threats to the company in the future.
- Stiff Competition:
There are so many big companies and players in the US oil and gas sector. Such increased or stiff competition can hurt the revenue and even sales of ExxonMobil. Competitors of ExxonMobil are continuously hurting its profitability every year by providing better services and products.
Final Thoughts | SWOT Analysis of ExxonMobil
ExxonMobil is taking the ultimate benefit of technology to produce petroleum products with less effort. No one has any doubt that it is one of the leading oil and gas companies with a diversified brand and product range. Explained in short, the company is doing fine in its industry.
Need Help or Advice in Content Management:
Do you want more advice? Do you have good practices to share? Express yourself in the comments.
Moreover, if you want any help to write content to drive more traffic and boost conversions, get in touch through Contact our team?
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? You can contact me through my Freelancer.com profile also. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
Read More:
SWOT ANALYSIS OF IOCL (INDIAN OIL CORPORATION LIMITED)
Do Personal SWOT Analysis to Make your Life Actionable, Simple and Clear
How to Achieve More by Setting SMART Goals
Comments are closed.