Analysis of Exxon Mobil by Porter’s five forces

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Analysis of Exxon Mobil by Porter’s five forces
Overview
Porter's five forces is considered as a strategic management tool which can
be used for Exxon Mobil because it is considered as an efficient tool for
analysing the level of competition for the company. It can help in giving a
well analysis about the competitive players of the company, the threats
they are going through etc.
Bargaining power of buyers
It has been said that more the bargaining power of buyers, more
is the possibility for seeking offers. So, Exxon Mobil can avoid this by
building a huge base of the customers because it will minimize the
bargaining power of buyers and also will help in increasing the
productivity of the firm.
Threat of new entrants
For any organisation working with a major and competitive goal,
entry of new individuals with the same roles can act as a threat and it is
obvious enough (Fragouli, 2016). So, the same can happen for Exxon
Mobil as well. Various new entrants that also belong to the oil and gas
innovations come in the market after every few days. So, it can act as a
threat for Exxon Mobil. These new entrants often come with a strategy as
they are aware of the companies that are already going in the market.
These strategies involve low pricing strategy, minimized costs, providing
various new features to the customers etc. as they use such tactics to
attract the customers. For avoiding this, Exxon Mobil can make use of
some ways and methods to stay prevented from such barriers and can
easily tackle such new entrants. Exxon Mobil can focus on involving some
new products as it is an attractive feature that can attract many customers
and also the old ones. Also, there is a sort of loyalty factor with the old
customers, so this can help Exxon Mobil from decreasing productivity.
Threats of substitute products
When new entrants also provides some product or service
that can act as a replacement for some other one that is being
provided by Exxon Mobile, so it can act as a threat for them. It is
because people always want to try new and modified products. But,
it can be prevented by Exxon Mobil as they can still focus on being
service oriented rather than being product oriented.
Bargaining power of buyers
It has been said that more the bargaining power of buyers, more
is the possibility for seeking offers. So, Exxon Mobil can avoid this by
building a huge base of the customers because it will minimize the
bargaining power of buyers and also will help in increasing the
productivity of the firm.
Rivalry among existing competitors
There must be various rivals of the Exxon Mobil in the
market place. When it seems intense, then the company can attract
the people with huge cut outs etc. But it can be avoided by Exxon
Mobil by developing a sustainable differentiation, by uniting with
the rivals so that they can focus on increasing the market size
instead of just competing with one another.
REFERENCES
Castaneda, L. C., Munoz, J. A. and Ancheyta, J., 2014. Current situation of
emerging technologies for upgrading of heavy oils. Catalysis Today 220.
pp.248-273
Bargaining power of suppliers
There are various suppliers that can help these new entrants. It
depends on the overall quantity of the new firms emerging in the market
(Lendrum and et.al, 2013). There is a possibility that when these new
entrants are in a huge quantity, suppliers are soft to them but in case of a
few entrants, the suppliers can act dominant and that can be beneficial for
Exxon Mobil. So, Exxon Mobil can stay away from such issues by
building a powerful supply chain with various suppliers. It is important
because it will not affect the company from some suppliers engaged in
supplying material to the new entrants