Industry Analysis And Competitive Advantage

Student’s Name

Professors Name

Course Code

Date

Industry Analysis and Competitive Advantage

ExxonMobil is one of the leading traded corporations in oil and gas worldwide. It was started in 1870 and incorporated in 1882 in the state of New Jersey. Since then ExxonMobil has grown to be the largest and the most profitable oil and gas corporation. It deals with exploration and production of crude oil and gas CITATION YCh19 \p 21 \l 1033 (YChart 21). However, the oil and gas industry has been unsteady due to constant price changes and problems in the middle. ExxonMobil has a market capitalization of $ 302.76Billion.

ExxonMobil has established a strong competitive advantage, which is evident across its three business model. According to Edward (18), Exxon Mobile has high impact technology, disciplined investing, balanced portfolio, global integration and excellence operations, which has helped the company to succeed in the market. Exxon Mobile has a sized, quality and diversity of portfolio projects, resources, and products. It, therefore, provides economies of scale, which is essential for high quality of investment. This also provides the company with a flexible advantage to utilize every opportunity and support the future growth of the company. Research has also indicated that ExxonMobil is a corporation in the oil and gas industry leading in the development and the use of technology CITATION Joh18 \p 13 \l 1033 (Edwards 13). It uses some of the latest technology in exploration and refinery of oil and gas, which gives it more advantage compared to its competitors. It pursues impact technologies, which is critical to its projects, operations and products provisions. This has helped it to perform well in the market.

However, some of the ExxonMobil competitors are Royal Dutch Shell PLC, ConocoPhillips and Chevron Corp. Chevron Corp is the second largest oil and gas firm in the U.S. It has a market capitalization of $217.61 billion and daily trading of about 5.64 million shares as per the FY 2018. ConocoPhillips deals with oil and gas exploration and operates in several countries. The company has a market capitalization of $81.76 billion and paid a dividend of 1.26% in the FY 2018 CITATION Exx18 \p 21 \l 1033 (ExxonMobil FORM 10-K 21). Royal Dutch Shell, PLC is also one of the leading oil and gas corporations, which operates in several countries. It has a market capitalization of $364 billion and it continues to expand in various markets. This means that the oil and gas industry in the U.S. is very competitive and therefore, ExxonMobil must deploy different strategies to make the profit in the competitive market.

Works Cited

BIBLIOGRAPHY Edwards, John. "Exxon Mobil's Main Competitors." https://www.investopedia.com/articles/markets/090715/who-are-exxons-main-competitors.asp (2018): 2-28.

ExxonMobil FORM 10-K. "Annual Report Pursuant To Section 13 Or 15(D) Of The Securities Exchange Act Of 1934." https://www.sec.gov/Archives/edgar/data/34088/000003408818000015/xom10k2017.htm (2018): 2-38.

YChart. "ExxonMobil Corp Market ." https://ycharts.com/companies/XOM/market_cap (2019): 1-35.