ExxonMobil Global Expansion

ExxonMobil Global Expansion

Introduction

ExxonMobil is one of the world's biggest publicly traded global oil and Gas Company. It helps to strengthen growing economies and advance the standards of living around the world by providing energy. ExxonMobil provides energy to a rising world by the assistance of technology and innovation. The organizational structure of ExxonMobil is based on globalization. The products that are exploring and sell by ExxonMobil include petroleum products, crude oil and natural gases (ExxonMobil, 2013).

Discussion

Q1. Why did they globalize?

Companies around the globe need to globalize in order to optimize the size of their organization, strengthen the network of production globally, and improve the competitive position and to respond to the pressure of quick development of technological environment (Manolica and Roman, 2013). Globalization of a company is fundamental to its success in the corporate world overall. The major reason why ExxonMobil needed to global was to grow or expand. Globalization helps ExxonMobil in expanding its customer base, sales and profits. For Example, Global relationships of ExxonMobil helped the company to maximize its sales by utilizing the external resources and customers base of other countries.

For companies in the energy sector, international market can be a vast source of revenue. It was of note of ExxonMobil to expand globally in order to compete effectively in the market. The company has gained its competitive advantage over competitors by owning 46 refineries in 26 countries. The management of ExxonMobil was aware of the fact that international expansion was necessary to remain competitive. ExxonMobil needed to globalize in order to have access to a larger talent pool, make more profit, increase efficiency level, and iterate faster. According to ExxonMobil (2013), the company's mission is to become the world's premier petroleum and petrochemical company. This success of ExxonMobil's vision required the company to go global.

Q2-What were the various ways they used to enter different markets, give examples?

Organizations can use different ways of entering into different markets. Each way of entering market requires some organizational and financial resources (Belu and Caragin, 2008). ExxonMobil can be seen as a large, diver and far reaching organization. The success of the organization came from different strategies taken to enter the international market. The basic way of reaching global market was Exxon Mobil's exporting industry. For example, Exxon Mobil exports kerosene, natural gases, petroleum and oil throughout the world. Products of ExxonMobil are being export in almost all of the countries around the globe. ExxonMobil used direct investments for entering different market. For example, ExxonMobil owns offices and operations in China to cater the increased demand of Kerosene in the market. ExxonMobil now own and operates refineries in different regions of China and Iraq. ExxonMobil makes joint ventures with other companies enter different markets. Examples of ExxonMobil's joint ventures include: ExxonMobil strategic venture with Qatar (NUSACC, N.D). The company has other joint ventures in Qatar, China, United Kingdom, Italy and United States. The company used its technology and innovation to enter different market by using different ...