Businessmodel of Williams Companies

Customer Segments

Williams Companies has a niche market business model, with a specialized customer segment. The company targets its offerings at firms in the energy and petrochemical industries.

Value Proposition

Williams Companies offers two primary value propositions: risk reduction and brand/status.

The company reduces risk by maintaining high safety standards. It created the Pipeline Integrity Management Plan (IMP), which identifies safety procedures that it adheres to as an added safeguard for liquid and gas transmission pipelines in highly populated areas. Its overall goal is“Operational Excellence“, which involves zero injuries, zero accidents, and zero releases.

The company has established a strong brand due to its success. It owns and operates over 33,000 miles of pipelines, including the United States‘ largest-volume and fastest-growing pipeline. Its interstate gas pipeline and gathering and processing operations include strategic assets in the deepwater Gulf of Mexico,  the Rockies, the Pacific Northwest and the Eastern Seaboard. The company‘s Williams Partners segment is one of the largest energy master limited partnerships in North America, and its operations touch about 30% of natural gas in the U.S.

Channels

Williams Companies’ main channel is its business development team. The company promotes its offering through its website, social media pages, and participation in trade shows and conferences.

Customer Relationships

Williams Companies’ customer relationship is primarily of a self-service nature. Customers utilize its products and services while having limited interaction with employees. The company’s website enables clients to manage their account, resolve issues, schedule activities, and more.

Key Activities

Williams Companies’ business model entails generating and delivering its energy products for its customers.

Key Partners

Williams Companies’ key partners are the suppliers that provide it with the equipment and materials it needs to run its operations.

Key Resources

Williams Companies’ main resources are its physical resources, the main one being 115 miles of pipelines in the Houston Ship Channel area that transport ethane, ammonia, propane, tertiary butyl alcohol, and other industrial products used in the petrochemical industry.

Other major physical resources are a tunnel-crossing pipeline under the Houston Ship Channel and the 280-mile Bayou Ethane Pipeline, which runs between Texas and Louisiana.

Cost Structure

Williams Companies has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is product costs. Other major drivers are in the areas of operation/maintenance and sales/marketing, both fixed expenses.

Revenue Streams

Williams Companies has two revenue streams: revenues it generates from sales of its products and from sales of its services. Sales typically occur through the signing of long-term contracts.