- 1 Introduction:
- 2 SWOT Analysis of ExxonMobil
- 3 Strengths in the SWOT Analysis of Exxon Mobil :
- 4 Weaknesses in the SWOT Analysis of Exxon Mobil :
- 5 Opportunities In The SWOT Analysis of Exxon Mobil :
- 6 Threats In The SWOT Analysis of Exxon Mobil :
- 7 Limitations of SWOT Analysis for Exxon Mobil
- 8 Weighted SWOT Analysis of Exxon Mobil
- 9 The Main Benefits Of Purchasing This Profile Are:
- 10 For more posts visit our website: https://swotanalysis.website/
SWOT analysis from Exxon Mobil analyses the brand through its strengths and weaknesses, as well as opportunities and threats.
It is based on Exxon Mobil SWOT Analysis, the strengths and weaknesses are internal factors, while threats and opportunities are outside factors.
SWOT analysis is a well-established management system that allows companies such as Exxon Mobil to benchmark their performance and business operations in relation to their competition.
Exxon Mobil is one of the most prominent brands in the energy and energy sector. The table below provides what is the Exxon Mobil SWOT (Strengths, weaknesses, opportunities, threats) and the most prominent Exxon Mobil competitors and includes the market it is targeting segmentation, positioning, and the Unique Selling Proposition.
|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)|
Exxon Mobil is among the top petrochemical firms in the world, with an international footprint. The company is the biggest openly traded oil firm in the United States.
In the United States, the company has built various refineries to satisfy the need for petrochemicals within the economic system.
Exxon Mobil was incorporated in New Jersey in 1882 and is headquartered located in Irving, Texas, United States.
It began its business as a tiny regional distributor of Kerosene and then grew to become one of the biggest openly traded oil, petrochemical, and corporations around the globe.
Nowadays, Exxon Mobil operates throughout the world, in almost every country through its extensive distribution and sales network.
The company has also set up refineries across the world beyond those in the US and Canada.
It has divided its business activities into three major segments which comprise downstream, upstream, and chemicals.
Its upstream operations comprise five businesses: unconventional deepwater, heavy oil liquified natural gas (LNG), and conventional.
The company continues to increase its refining and exploration capabilities by focusing on development and research.
In recent times the company has seen an enormous drop in both profits and revenue. The company suffered an annual loss that was more than $22 billion in 2020.
The company has remained in the top four on the Fortune 500 list for the last few years and is now focusing on expansion.
In addition to the competition and falling oil prices and the increasing need for sustainable energy, however, the company is also facing additional problems.
In this swot review, we will look at what are the advantages and disadvantages of Exxon Mobil as well as the main opportunities and threats to the future of the company.
SWOT Analysis of ExxonMobil
SWOT will reveal areas that hold you back or the risk of losing when you fail to protect these areas.
Analysis of SWOT is a method to help you understand the strengths and weaknesses of your business as well as threats and opportunities.
To gain a better understanding of the SWOT analysis for ExxonMobil look up the following infographics:
Let’s discuss the advantages of ExxonMobil by using an analysis of the SWOT ExxonMobil.
Strengths in the SWOT Analysis of Exxon Mobil :
The Brand Worth: It ranks 51 1st on the Brand Finance report according to the value of its brand. The value of its brand stands at $19.227 billion. It is ranked 4 4 globally for the Oil and Gas sector in terms of value for the brand.
Position in the Market Situation: Exxon Mobil has a good market position. It is the biggest refiner worldwide. It has operations in most of the nations that it has explored in search of natural gas and crude. In FY 2015,, Exxon operates 23 refineries operating in 14 countries. It also has the capacity to distill 13,000 barrels per day.
Comprehensive Operation: Exxon has exhausted and sells nearly all products made from refinery operations that are crude. It is certain that it is a major downstream and upstream operation. It is the largest retailer of lubes and fuels.
Project Portfolio: Being the largest refiner comes with perks. It has a strong financial backer and, consequently, has many projects which include heavy oil, conventional, lighter gas, shale gas, LNG (Liquefied Natural Gas), deep water, arctic, and sour gas projects.
research and development: Exxon Mobil undertakes a variety of R&D initiatives to stay current in the market. One of them is to create methods that allow technology that allows you mining situ bitumen, as its primary source is deep to allow surface mining. The goal is the reduction of water usage as well as reducing greenhouse gas emissions and increasing bitumen extraction, and using solvents to get access to undeveloped sources.
revenue generation Exxon doesn’t rely upon anyone or several countries to generate revenue. This gives them an immense advantage over their rivals. They sell to the US, Canada, UK, Belgium, Italy, France, Singapore, Germany, and many more.
Weaknesses in the SWOT Analysis of Exxon Mobil :
Negative publicity Exxon Mobil participates in a variety of lawsuits and litigation across the globe. The legal proceedings vary from seeking claims for fines, damages, or penalties.
In one instance, the company accepted to settle for $225million in a settlement in its New Jersey trial involving contamination at refineries and pollution. These sorts of lawsuits affect their image and result in massive financial losses.
Poor financials Exxon was hit by the loss of revenue of 34.2%in the year-end 2015. The company’s profits have also decreased by 50.3 percent.
The Debt Exxon is experiencing an uptick in debt, from $11.581 billion during FY 2012, to $38.687 billion in FY2015.
Opportunities In The SWOT Analysis of Exxon Mobil :
Rising Need: The demand for energy is increasing and will continue growing in the near future too. This provides Exxon Mobil with a huge potential to expand. The anticipated increase in demand between 2014 and 2040 is around 40 percent.
Other sources of energy needed for electricity in the future are expected to include a significant proportion of renewable sources. Exxon must be aware of this shift and adapt in a manner that is appropriate. About 40percent of the increase in energy consumption can be met through renewable energy sources.
Growth of LNG demands: Exxon is currently majorly investing in LNG R&D. In 2040, nearly half of natural gas consumption will be met with LNG. Exxon Mobil needs to be ready and be able to begin commercial sales to reap the benefits of this shift.
Threats In The SWOT Analysis of Exxon Mobil :
Competitors: ExxonMobil has been facing an enormous rivalry from other companies. this has caused an enormous drop in profits and revenues.
Environment Regulations: The environmental laws are getting more and more strict. This has made their job more difficult when it comes to cutting down on global warming and greenhouse gas emissions and water use. This presents a huge problem for them to face.
Economic: Global economic growth has faced many difficulties recently, which has led numerous countries to reduce their imports of oil. Alongside this, the declining oil prices also pose the risk of a major risk.
supply Risques: Supply risks of gas and crude are affected by a variety of variables ranging from natural to human-made. There is also the risk of spills.
Limitations of SWOT Analysis for Exxon Mobil
While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely to plan strategic strategies However, it has its fair share of drawbacks.
- Certain aspects or capabilities of an organization could be both a strength as well as a weak point at the same. This is among the main drawbacks that SWOT analysis has. For instance, changing environmental regulations could be dangerous to companies, but however, it could also be an opportunity in the sense that it allows the company to compete in a position to compete with its competitors or even gain an advantage over competitors if they can develop its products more quickly than its competitors.
- SWOT is not able to show you how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be considered a solution in and of itself.
- The matrix is merely an initial point of reference for discussions on how suggested strategies can be implemented. It also provided an evaluation window, but not an implementation plan based on strategic competitiveness. Exxon Mobil
- The SWOT model is a static analysis that analyzes the current conditions with only a few potential modifications. When circumstances, capabilities as well as threats, and strategies alter, the dynamic of the competitive landscape cannot be analyzed in one single matrix.
- SWOT analysis could cause a company to focus too much on one external or internal element in formulating strategies. There are interrelations between the important external and internal elements that SWOT doesn’t reveal, which could be crucial in determining strategies.
Weighted SWOT Analysis of Exxon Mobil
Due to the previously identified shortcomings of the SWOT analysis/ matrix, the corporate management determined to give weightage to every internal strength and weakness of the business.
Companies also evaluate the probability of events happening in the near future and what the effect can be on the performance of the company.
This technique is known as a weighted SWOT analysis. It’s superior to basic SWOT analysis as using a weighted SWOT analysis Exxon Mobil managers can focus on the most crucial aspects and eliminate the less important ones.
This also helps solve the long list issue which is when organizations make an extensive list, but none is considered to be crucial.
The Main Benefits Of Purchasing This Profile Are:
You will receive detailed information on the company’s operations and operations in order to find potential suppliers and customers.
- The profile examines the structure of the business operations, its key product and service offerings, potential locations and subsidiaries, top executives and their bios as well as the key competitors.
Be aware of and react to competitors’ business structures and strategies and exploit their weak points. Keep up-to-date with the most important developments that affect your business.
- The strengths of the company as well as weaknesses as well as areas for development or decline are examined and described objectively in the profile. Recent developments within the company included in the profile will aid in keeping track of important developments
Learn from the experts which will allow you to enhance your strategies and improve your operation profitably.
- Opportunities for the company to discover and capitalize on are measured up and its potential growth is evaluated in the report. Technological and/or competitive threats are identified.
Scout for possible investments as well as acquisitions targets along with an in-depth analysis of the company’s financial, strategic, as well as operational results.
- The ratios of financial ratios presented for major public companies on the profile include the trends in revenue including profitability, growth margins, returns, and margins as well as leverage and liquidity, the ratios of efficiency, and financial position.
Get valuable information about the company to use in research in business or academic studies.
- Important elements like the SWOT analysis of corporate strategies, and charting and financials are included in the profile to help your business or academic research requirements.
Exxon Mobil is among the most prominent oil and Petrochemical companies around the globe and has been among the top three on the Fortune 500 list regularly over the last few years.
However, Exxon Mobil is having difficulty maintaining its growth rate because of the pandemic, which has affected oil production and sales globally.
The recovery process will be slow and, according to the experts, demand and prices will fully recover in 2023. The company experienced massive losses in the year 2020.
The outlook is for improvement by 2021 however returning to the pre-pandemic sales and demand will require time.
The company will need to remain focused on research and. development to ensure its continued expansion and profitability in an extremely competitive and difficult market.