Week 4

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Industry Analysis and Competitive Advantage

ExxonMobil is the world’s largest corporations in gas and oil traded in the stock market. It was started in 1870 and incorporated later in 1882 in the state of New Jersey. Although the oil and gas industry is very challenging and competition is high, ExxonMobil is credited for its profitability and market growth CITATION YCh19 \p 14 \l 1033 (YChart 14). The industry has several players both large and small and medium enterprises and therefore, every firm has to develop its own competitive advantage to succeed in the oil and gas industry. This paper, therefore, provides a brief analysis of the oil and gas industry, ExxonMobil competitive advantages and ExxonMobil competitors in the market.

Research has indicated that ExxonMobil has a high growth rate as a result of its competitive advantage. It has a low cost of capital and better economies of scale CITATION Exx19 \p 21 \l 1033 (ExxonMobil 21). This is because the company has huge cash flow and the cost of running the company is also very huge as well. It has a healthy cash flow, diversified operations, huge market gap and a good reputation in the market. This allows it to drill the kind of capital markets at a better rate, which is difficult to be obtained by other firms in the market. However, this competitive advantages give ExxonMobil more advantages over other firms and therefore, it continues to outperform others in the market CITATION Joh18 \p 19 \l 1033 (Edwards 19)

ExxonMobil Competitors are Chevron Corporation, Shell and BP corporations. Chevron is regarded as the second largest oil and gas firm in the United States. It has a market capitalization of $ 308 billion and it continues to grow in terms of stock index and market share. Shell headquarters is based in Netherland and it operates in the United States and other countries as well. It has a market capitalization of more than $ 364 billion CITATION Exx18 \p 13 \l 1033 (ExxonMobil FORM 10-K 13). Bp is also one of the largest oil and gas corporations and it has a market capitalization of 301 billion and it operates in several countries as well. In brief, ExxonMobil is the leading gas and oil corporations in terms of profitability due to its highly competitive advantage in the 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. "Business model and Competitive advantages." https://corporate.exxonmobil.com/en/company/investors/business-model-and-competitive-advantages (2019): 2-27.

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.