Question

For ExxonMobil Upstream segment

1. Identify the buyers and suppliers

2. Identify core activities (If they were different, would your profit go down?)

b. core assets (If they were different, would your profit go down?)

3. Describe the type of competitive advantage (i.e. generic strategy) generated by these activities and assets.

Answer 1

answer :

For ExxonMobil upstream segment

1. Buyers and suppliers of ExxonMobil upstream segment

• Buyers- ExxonMobil upstream have its buyer allover world. They buy fuel, chemicals, heating oil, lubricants etc.   
• Suppliers - oil- and gas-field service providers equipment manufacturers, drilling operators, shipping companies, engineering firms, etc. are supplier of ExxonMobil upstream in worldwide. For example   

- Parker Drilling Company

- The New Zealand Refining Company Ltd

2.a. The core activities of ExxonMobil upstream segment: exploration, production, development , marketing and research activities are core activities of ExxonMobil upstream   

• Producing crude oil and natural gas
• Gathering, treating, processing and field storage of oil and gas
• Drilling production wells, building platforms, processing plants, field storage and pipelines etc. infrastructure for transportation of gas and oil.

(If they were different, the profit will not go down in fact it will increase)

2. b. The core assets of ExxonMobil upstream segment:

• Heavy machinery and equipment
• Latest technology
• Skilled labour power
• Worldwide strong market
• Efficient business management

Different type of assets will bring the profit up.

3. The type of competitive advantage (i.e. generic strategy) generated by these activities and assets are as follows:

• Oligopoly competition in the market
• Reducing cost increasing production
• Effective marketing strategy
• Proper distribution of products in the worldwide markets
• less competition in the global market