Exxon Mobil Resources and Capabilities
Exxon Mobile is one of the most successful companies in the oil and energy industries today. But what makes them so successful? In an effort to answer this question, a thorough internal investigation can be helpful in determining what aspects of this company are making it an industry leader. Two aspects of this internal analysis of Exxon Mobile are the company’s resources and capabilities.
Resources
One of the most reputable resources that Exxon Mobil has today is a strong brand name. Exxon Mobil operates all over the world and is recognized in every part of the world (Datamonitor, 2008). When people all over the world know who a company is, what they do, and where they are located, the company gains a unique competitive advantage over the rest of the industry. A good way to analyze this resource is to use the VRINE Model (Strategic Management, 2007). This breaks down in order to analyze its value, rarity, inimitability, and exploitability.
For this resource I’ll start by assessing its value. The question that must be answered is, “does this resource allow the firm to meet market demand or protect the firm from market uncertainties?” (Strategic Management, 2007). In the case of the brand name resource, I believe that it gives them ample protection against uncertainty and enables them to compete, if not lead, in the industry. Exxon operates in over 200 countries around the world (Datamonitor, 2008) The fact that this company is present all over the world, and not many other industry competitors operate in so many different regions, proves that this particular resource is very valuable to the company. If a company can possess something that another company cannot, value is inevitably created for that resource. This resource also protects them from uncertainty because this brand is already established itself within the market and can thrive in it without too much concern about the well being of the company, thus limiting some uncertainty.
Next in the VRINE
Resources
One of the most reputable resources that Exxon Mobil has today is a strong brand name. Exxon Mobil operates all over the world and is recognized in every part of the world (Datamonitor, 2008). When people all over the world know who a company is, what they do, and where they are located, the company gains a unique competitive advantage over the rest of the industry. A good way to analyze this resource is to use the VRINE Model (Strategic Management, 2007). This breaks down in order to analyze its value, rarity, inimitability, and exploitability.
For this resource I’ll start by assessing its value. The question that must be answered is, “does this resource allow the firm to meet market demand or protect the firm from market uncertainties?” (Strategic Management, 2007). In the case of the brand name resource, I believe that it gives them ample protection against uncertainty and enables them to compete, if not lead, in the industry. Exxon operates in over 200 countries around the world (Datamonitor, 2008) The fact that this company is present all over the world, and not many other industry competitors operate in so many different regions, proves that this particular resource is very valuable to the company. If a company can possess something that another company cannot, value is inevitably created for that resource. This resource also protects them from uncertainty because this brand is already established itself within the market and can thrive in it without too much concern about the well being of the company, thus limiting some uncertainty.
Next in the VRINE
Cited: (2007). ExxonMobil Summary Annual Report 2007. Retrieved September 18, 2008, from www.exxonmobil.com Web site: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-reportsAnnual Carpenter, M. A. (2007). Strategic Management. Upper Saddle River, New Jersey: Pearson Education, Inc.. ExxonMobil Corporation Company Profile. (2008). SWOT Analysis. In Datamonitor [Web]. New York: Datamonitor. Retrieved 09/18/08, from www.datamonitor.com