Business Level Strategy ( Exxon Mobil ) Essay
Definition :( Business Level Strategy) “Business- Level strategies are actions firms take to gain competitive advantages in a single market or industry”. (BLS, 102).ExxonMobil is one the few companies that has been able to lead the oil and gas industry through its cost leadership. Its large economies of scale makes it dominant firm in the market as well as cost leader in the industry. The powerful market position across the value chain allows the company to take advantage of the new emerging growth opportunities around the world. The overall geographic diversity across business model enables Exxon Mobil to decrease risks in a competitive turf and maximize profitability through less risky business portfolio. ExxonMobil chooses a cost leadership business strategy focuses on gaining advantages by reducing costs to below to those of all its competitors.
Business Level Strategy
Sources of cost advantage:
1) Size differences and economies of scale:
ExxonMobil is the 4th largest oil and gas producer of the world and number one in the USA. ExxonMobil has expanded its horizon across the globe with established large extracting and refining low cost facilities in more than 17 countries like Indonesia, Brazil, Europe and Asian markets. Due to its size and strength the company is able to drive away the smaller companies by producing more volume at a fairly lower cost per unit The volume of oil production are carried out through specialized…