Last time we had a look at the detailed SWOT analysis of Shell, an Anglo Dutch-based multinational oil and gas company. This time we will dive deep into the SWOT analysis of ExxonMobil and its work.
ExxonMobil is a company that produces and markets oil, natural gas and power generation. ExxonMobil Energies was created in the year 1999 with an ambition to enable America to play a key role in the manufacturing of natural gas and oil exploration.
ExxonMobil’s efforts in marketing have helped them a lot. Marketing helps in achieving the desires and preferences of the target audience. Today every other company is using digital marketing, hence it has become a very important and essential skill to learn. You can check our Free MasterClass on Digital Marketing 101 by Karan Shah, the founder and CEO of IIDE.
Before we begin further with the SWOT analysis of ExxonMobil, let us discuss the company, what products it has to offer, its financials and its competitors.
ExxonMobil is an American multinational oil and gas corporation incorporated in New Jersey, the United States. The company deals in the production and exploration of Crude oil, Oil products, Natural gas, Petrochemicals and Power generation. The company was formed through the merger between Standard Oil company of New Jersey and New York named Exxon and Mobil which was founded by John D. Rockefeller.
ExxonMobil has a strong market position with always holding its ranking in the top 5 largest United States corporations by total revenue. It is the largest refiner in the world and one of the world’s Big Oil companies. It operates in most of the countries and has explored every continent for crude and natural gas. As of FY 2015, Exxon has 23 refineries in 14 countries and has a distillation capacity of 136000 barrels per day.
|Founder||John D. Rockefeller|
|No. of Employees||72,000+|
|Market Cap||$328.43 Billion (2022)|
|Annual Revenue||$178.6 Billion (2020)|
|Net Income/ Profit||$22.44 Billion (2020)|
Products & Services by ExxonMobil
These are some of the products and services by ExxonMobil
- Crude oil
- Oil products
- Natural gas
- Power generation
Competitors of ExxonMobil
Here are some of the close competitors of ExxonMobil:
Let’s begin with the SWOT analysis of ExxonMobil.
SWOT Analysis of ExxonMobil
SWOT can tell the areas that are holding you back, or about the loss if you don’t protect them. SWOT analysis is a tool that helps you analyze your company’s strengths, weaknesses, opportunities and threats.
To better understand the SWOT analysis of ExxonMobil, refer to the infographics below:
Let’s start by discussing the strengths of ExxonMobil from the SWOT analysis of ExxonMobil.
Strengths of ExxonMobil
The strengths of ExxonMobil are the points that helped ExxonMobil to achieve success. Let’s have a look at the strengths:
- Diversified Brands: Under its primary umbrella, the firm has diversified into many different areas of the energy industry and has numerous strong brands including Coolanol, Esso, Exxon, Mobil, On the Run and Speedpass.
- Brand Name & Reputation: ExxonMobil is a big company with 150+ years of experience and expertise. It has a stronghold over the market with the distribution of advanced energy and oil products in more than 14 countries around Europe, North America, South America, Asia, and Africa. and has maintained a high reputation over the years.
- Vertical Integration: ExxonMobil has successfully integrated its business operations vertically by engaging in an exploration of petroleum, oil barrels and refineries. The upstream market involves exploration and production. In the downstream market, it is in the marketing of its brands and gasoline. They enjoy quality control and cost benefits as competitive advantages by vertical integration.
- Research & Development: ExxonMobil is continuously trying to improve its technology to decrease its carbon footprint and greenhouse emission while trying to extract more fuel with fewer efforts. ExxonMobil has many patents registered in their name and ExxonMobil has sustained investment in R&D. R&D helps in reducing expenditure and also gives competitive advantages.
- Exploring New Markets: ExxonMobil has a record of exploring and conquering new markets while having the advantage of consumer satisfaction. The worldwide expansion of the company has helped build a new revenue stream. Therefore, ExxonMobil can be considered an experienced player when it comes to entering new markets.
- Range of Consumer Products: ExxonMobil provides a range of consumer and business products for the easement including the latest Synergy unleaded gasoline and diesel fuel products, motor oil, more than 10,000 fuel stations, convenient payment methods and the ExxonMobil Rewards program.
Weaknesses of ExxonMobil
Weaknesses are the areas where the company is lacking behind and needs improvement. Let’s have a look at the weaknesses of ExxonMobil:
- History of Environmental & Social Impacts: The organization has been accused of polluting and harming the environment by not doing enough to become green and save the ecosystem. It is considered to be one of the world’s worst oil spills in terms of damage to the environment.
- Net Income: Recently in 2020, ExxonMobil reported a net loss of 22.44 billion U.S. dollars. Also, the company’s financial structure is imbalanced and shows declining amounts in the financial report.
- Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
- Controversies: The firm was involved in a series of scandals involving oil leaks in various regions of the world, which had a significant impact on its sustainability rating and goodwill with stakeholders. Their oil leaks have also resulted in the deaths of marine creatures at the Alaskan coastline and have severely harmed the ecosystem.
- Ethical and Human Rights Issues: ExxonMobil has experienced a series of lawsuits alleging that ExxonMobil knowingly assisted human rights violations, including torture, murder and rape from dishonest employee transactions, further damaging the corporation and giving the impression that the company does not take any action on its employees ethical and human rights.
Opportunities for ExxonMobil
Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for ExxonMobil:
- Net Zero Emissions: The company is planning to successfully implement net-zero emissions in Permian Basin operations by 2030. If the plan is achieved it will give the company a positive image in the market.
- Economic Development: Economic development and rising consumer spending, after years of economic decline and slow growth rate in the industry, is ExxonMobil’s opportunity to capture new customers and expand its market share.
- Increasing Greener Demand: The accelerated demand for cleaner and greener energy drives also opens up the possibility of purchasing ExxonMobil products by the government and federal government contractors.
- Global Expansion: ExxonMobil is known for entering new markets and conquering them and hence, expansion to new locations and countries is always an opportunity for the firm. Recently, the company has started its production at Guyana’s Second Offshore.
- Need for Sustainable Development: The world has started to prefer brands that support environmental health. ExxonMobil’s current mission and vision clearly state that it is working its way towards greener energies and emerging sustainable technologies which, if pursued correctly can give the firm a huge advantage.
Threats to ExxonMobil
Threats are the issues that can cause problems to the company in future. Let’s have a look at some of the threats to ExxonMobil:
- Lawsuits: The company can face lawsuits in various markets. As there are different laws and a continuous fluctuation of standards regarding products in those markets.
- Eco-friendly Fuel: If the dependability on renewable energy and non-conventional sources of energy increases then the company may face a large drawback as their products are not environment friendly.
- Climate Changes: As energy demand is increasing, carbon dioxide emission in production as well as upstream is expected to increase which needs to be under control for ExxonMobil. ExxonMobil has to find ways to reduce the emission of carbon dioxide or else ExxonMobil has faced increasing costs and strict regulation.
- Political Volatility: Oil and gas have been a very important subject of discussion between many countries for the last century. Energy demands and Production are always surrounded by politics. ExxonMobil has the disadvantage of becoming a victim of political development in the future.
- Intense Competition: Increased competitors’ technologies and profit stability have increased the competition in the industry over the last two years which has put downward pressure on not only profit but also sales.
This ends our detailed SWOT analysis of ExxonMobil. Let us conclude our learning below.
ExxonMobil is a highly technologically advanced company in its field of work. They have proved that they are the greatest player as they survived the competitive market situations while going through the global pandemic in 2020.
ExxonMobil has to work upon the weaknesses mentioned above to continue being one of the supermajor companies in the industry. They have to foresee the upcoming threats to avoid any sort of harm to the company. Ignoring the threats can prove to be lethal in the upcoming years of the company.
One of the biggest reasons that ExxonMobil succeeded in its marketing strategies during the worst situations possibly imaginable, the global pandemic, as they successfully shifted to digital marketing on time.
The importance of digital media has grown exponentially over the past few decades. Businesses are very careful about their marketing, advertising, and social media presence. If you are a Marketing enthusiast the most important thing right now is to understand digital marketing. Check out IIDE’s 3 Month Advanced Online Digital Marketing Course if you want to learn more and improve your skills.
We hope this blog on the SWOT analysis of ExxonMobil has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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