Businessmodel of ExxonMobil

Customer Segments

ExxonMobil has a mass market business model, with no significant differentiation between customer segments. The company targets its offering at consumers and businesses that need oil and gas.

Value Proposition

ExxonMobil offers two primary value propositions: accessibility and brand/status.

The company creates accessibility by making its offerings easily available. It sells its products at over 20,251 locations worldwide – in the U.S., Canada, Europe, Asia-Pacific, Latin America, and the Middle East/Africa. It also increases access by providing a wide variety of options. Customers can buy its products using a broad range of payment options, including bank debit and credit cards, Exxon and Mobil personal and commercial credit cards and gift cards, the Speedpass+ app and the Speedpass key tag program, and the Plenti card.

The company has established a powerful brand due to its success. It is the largest public oil and gas company in the world, and also holds the following titles:

• World’s largest refiner and marketer of petroleum products, with 37 oil refineries in 21 countries
• Eigth largest company in the world by revenue
• Fifth largest public company by market capitalization The company produced 1.74 million barrels of crude oil and 257,000 barrels of natural gas liquid daily in 2015. Lastly, ExxonMobil has won a number of honors, including the VOMI Safety eXperience Award and the 2014 Occupational Safety and Health Gold Class I Award from the Malaysian Society for Occupational Safety and Health.

Channels

ExxonMobil’s main channels are the retail sites through which it sells its oil and gas. It owns/leases some service stations and franchises others through resellers and distributors. The company promotes its offering through its website, social media pages, and advertising.

Customer Relationships

ExxonMobil’s customer relationship is primarily of a self-service, automated nature. Customers utilize its products through service stations while having limited interaction with employees. That said, there is a personal assistance component in the form of workers at on-site convenience stores.

Key Activities

ExxonMobil’s business model entails producing, refining, and marketing its oil and gas products.

Key Partners

ExxonMobil’s key partners are the wholesalers, resellers, and distributors that sell its product through franchised service stations bearing its brand name. It has also established joint venture partnerships with companies worldwide such as Qatar Petroleum, with whom it has developed liquefaction facilities, LNG ships, and terminals where LNG is regasified and distributed.

Key Resources

ExxonMobil’s main resources are its physical resources, which include its reserves of billion oil-equivalent barrels and the 20,251 retail sites at which it sells its oil and gas product.  As of December 2015, it owned 3,938 of these locations and franchised 16,313 to distributors and resellers. Other important physical resources include manufacturing plants and transportation systems.

Cost Structure

ExxonMobil has an economies of scale cost structure, with costs per unit output dropping as output expands. Its biggest cost driver is crude oil and product purchases. Other major drivers are in the areas of production/manufacturing, sales/marketing, exploration, and administration.

Revenue Streams

ExxonMobil has one revenue stream: revenues it generates from the sale of its crude oil, natural gas, petroleum, and chemical products.