Running head: BUSINESS STUDIES 1

Exxon Mobil Corp Business Model

Name

Affiliate Institution

Date
BUSINESS STUDIES 2

Exxon Mobil Corp Business Model

According to Clegg 2017, a business model refers to a complete system that a firm uses to

create, capture value and perform product or service delivery to intended clients(Clegg, 2017). In

most cases, business models start with innovations, inventions, business ideas, the discovery of

market niches and technological advancement for commercial success. Based on Marsh research

in 2013, a good business model typically provides a description of how the firm will be able to

create both economic and social values(Marsh, 2013). The process that helps to innovate

business models is crucial, since it ensures that business firms can remain in line with the

consumer demands.

In Australia, there is persistent encouragement for female school leavers to specialize in

engineering careers in the oil and gas sectors. The opening of more oil and gas organizations in

Australia can enhance job creation for the engineering graduates, as well as enhancethe growth

and development of the nation. As such, the opening of Exxon Mobil Corp branch in Australia

could be a good idea(Osterwalder&Pigneur, 2015). The report is about discovering and

explaining the Exxon Mobil Corp business canvas model. There will thus be a discussion of four

critical tools for the Exxon Mobil Corp business model, namely, the business model canvas, the

blue ocean strategy, the value proposition canvas and test cards. The discussion will involvethe

current and potential customers, suppliersdirectlyas well as other stakeholders in order to create a

value proposition through effective communication. This will include collecting valuable

information that could be crucial to the firm.

Introduction for Exxon Mobil Corp

Exxon Mobil Corp is one of the largest oil and gas firms in the world. The business was

started in New Jersey early in 1882. This company has other business segments that consist of an
BUSINESS STUDIES 3

upstream chemical and a downstream portion(Pleatsikas & Teece, n.d). Each of these sections

has a different role and duties within the company. Upstream has the purpose of producing crude

oil and gas. The downstream work is to manufacture and sell the petroleum to clients. Exxon

produces petrochemicals among other products thatare required by the firm. The paper seeks to

analyze the business model canvas used in this industry and to describe the new model approach

that would be recommended for the company.

Exxon Mobil Corp has been working with the government and other partners who are

supportive, especially regarding the delivery of hydrocarbon resources.The firm makes use of

various approaches including technology, creativity, innovation and other investment methods to

ensure efficient operation. Working with the government has helped a lot, especially regarding

the management and organization of the firm. Resources have also been used efficiently and

effectively without wastage. There have been global committees where ideas get exchanged

solutions to given problems are devised. The look of ideas from different perspectives has not

been easy since the company requires experts in mechanical issues like the fixing of machines

and arranging them for processing and manufacturing to occur.

Exxon Mobil Corp Business Model Canvas (BMC)

Table 1 will show a report on BMC for Exxon Mobil Corp. The business model canvas is

composed of nine categories, which include; key partners, critical activities, shareholder value

propositions, revenue streams as well as the customer segment.

Business Model Canvas

BUSINESS STUDIES 4

Key Key Value Prop Customer’s segment Revenue Streae

Value Revenue
Partners Activities Proposition Streams

-Customers have Customer

segments
-PWC for -Energy -Provision of unlimited accessibility -Water and
cheaper power
Logistics and solutions to management; customers.

Management provision,- alternative Immediate feedback; -Aviation and

health sector
solutions Offering of start- energy sources; Marketing and customers

financial boosts -Gas and energy

-Capgemini for ups, financial advertisement. industry.
the provision of management, to beat crisis and -Transportation
and the lighting
internet solutions corporate control Provision of appliances sector
venue Streams
-EY for the and solutions to
-Customer
start-ups segments
globalization of technological
-Water and
GE industrial upgrades. problems osition
power
customers.
mash-ups.
-Aviation and
-Provision of health sector
customers
Key Resources cheaper Channels
-Gas and energy
alternative industry.
-Transportation
-Industrial energy sources; -Social media
and the lighting
appliances
operating system. financial boosts -Recommendations
sectosegments
-Workforce. to beat crisis and -Marketing and -Water and
power
-Partnerships. Provision of advertising avenues. customers.

-Competitive -Aviation and

solutions to health sector
advantage customers
start-ups
-Gas and energy
BUSINESS STUDIES 5

against problems. industry.

competitors. -Transportation

and the lighting

appliances sector

-Customer

segments

-Water and

power

customers.

-Aviation and

health sector

customers

-Gas and energy

industry.

-Transportation

and the lighting

appliances

sector.
Cost Structures Revenue Streams

-Assets: property, plants, technological -Technological infrastructure

infrastructure, land, buildings and operational -Lighting columns

equipment. -Energy connections and the capital streams

-Advertisement.
BUSINESS STUDIES 6

-Customer service management

Table 1: Business Canvas Model for Exxon Mobil Corp

Key partners

In an estimation of the next decade, the partners band together in the sector, which is a good

way of improving innovation at the company.The government is mostly engaged ininnovation

with Exxon Mobil Corp, which would enable the company to have a better chance of utilizing is

resources and creating more change.There can be more innovation when the ideas of the

epicenter is used to produce oil and natural gas. The partners will be trained in the new model

where by applying the business model canvas, which would lead to greater competence in the oil

and gas sectors.There will also be diversified sectors, which would lead to more creativity and

innovation at the company.

For a company like Exxon Mobil Corp, innovation can serve as an excellent tool to

venture into different markets.It can help to provide innovation to generate higher income for the

livelihood of all the citizens within the nations of new locations. Exxon Mobil Corpwould be

more successful in inventing a unique selling point in the field of communication, health,

transport, oil and gas. The use of new markets in these fields would help to improve production

and mechanization, as well as distribution from suppliers to sell crude oil products. The use of

customer segments at the Exxon Mobil Corp can be convenient for the market expansion in most

countries, apart from the New Jersey. Innovation in the oil sector is necessary to increase the

resources used at the company.

Key Resources
Resources in Exxon Mobil Corp concern the operating activities of the firm. There is the

installation of hardware's, tanks and containers among other tangible things to carry out

production processes. The products placed in these containers are the gas, crude oil petroleum,
BUSINESS STUDIES 7

and other manufactured chemical products. There are three sections and plants at the company

that perform different tasks and use different resources. Due to advanced technology, there has

been the installation of security machines, processing equipment and building of new processing

plants. The natural crude oil and gas is mined and taken through several stages to make them into

finished products for consumers. Thus, this process requires human and physical resources to

accomplish the goals and objectives of the firm. Capital is another necessary resource and is a

critical factor of production. The funds help to pay workers, repair broken machines and to buy

necessary equipment among others aspects at the company.

Channels
Exxon Mobil Corp reaches it’s company through many ways related to social networking.

There are employees hired to market the company to clients and to create awareness to as many

people as possible. The firm uses social media and online applications to advertise products

manufactured by the firm and to advise customers on credibility. In addition mobile phones are

used to communicate with clients who call asking about the gas and other products of the firm.

Within this sector, consist advertising of the products through face to face and printing brochures

has been used. Exxon Mobil Corp has managed to build its image to its clients and have

maintained a positive reputation over the last decades.

Key activities
The firm is a renowned crude oil and natural gas producer and they are responsible for

marketing the products to customers. The company has three chambers that perform different

activities from manufacturing, processing, to the packing the finished products for distribution.

The company has been producing chemicals and pesticides, which are bought by clients for other

activities. The firm has also been involved in other businesses besides the production of natural

gas and crude oil. It has been helping the company to make extra money and to make huge

annual profits.
Value Proposition
BUSINESS STUDIES 8

Examining the customer connection patterns and requests can help create better customer

profiles and a more customized client encountersare encouraged at the company. The

intervention will develop the firm’s portfolio, because customers refer to it as one of the primary

explanations as to why they were not sgtaified with the answers they received. An example for

improvement, is the Oracle Right Now CX Cloud Benefit that makes use of customer

relationship management (CRM) to manage clients.

The firm needs to adopt innovation that can ensure product diversity so that clients and

employees can be offered better services. The Exxon Mobil Corp can take advantage of

advanced technologies and communication channels to conduct business activities. However, the

firm needs to provide recommendations to enhance the company’s performance. The company

should improve diversification with an upgrade of its systems and thereby improve its customer

relationship management outcomes.

It can use client data and access back-office information to give information on oil

administration mechanization and in directing specialists who have appropriate management

abilities and are furnished with the “where, what and when” of clients' past contact with the firm.

This will providea constant part of relevant information and a snapshot of the truth.

The activity of customer care officials can be observed through recording each

transaction regarding oil sold and checking the records and prices constantly (Foss& Saebi,

2016). Another group sees the requests as well as mistakes and improper action is noted and

changes made as necessary. Another approach to investigating client contact conduct is in

gathering informationwith the explanationsof buying crude oil(Ramamurti, 2012).

Customer Relationships
BUSINESS STUDIES 9

Exxon Mobil Corp aims at maintaining good customer relations at the firm. The products are

of good quality, which attracts more customers (Imke, 2016). There is also an ethics code of

conduct where all workers must respond politely to customers. Loyalty to the clients is

paramount and when the customer orders oil or any other product, it must be distributed as

agreed. It has helped creating trust and developing a good attitude towards the firm. The image

of this firm is good and branding is continuing as the company comes up with a new ways of

doing business. The discovery of new items has helped the firm to grow and increased the

product variety, thus satisfying customers with different tastes and preferences.
Customer Segments
Client relation segments operate from different areas at the firm. There is a segment for

the transportation and distribution of products. The segment is for those customers who need

delivery of the oil in their respective regions. Other segments are for those companies which

order oil to sell at retail prices to users and thus order wholesale. The company deals with

different sectors where all customers are serviced(Jagabathula, Subramanian & Venkataraman,

2015). There is also a reception area where customers are directed upon arrival at the firm. There

are other areas designed for customers parking and relaxation upon arrival at the company.
Cost structure
The main costs at the plants are regarding the machinery and equipment used to process

oil and gas. The company uses these methods of account and other exploration in production

activities, which incur extra costs. Other costs are incurred when leasing properties needed for

manufacturing processes. The company has to buy packing containers to measure the amount of

gas or crude oil sold to the customers. It makes the firm to incur expenses. Other expenses come

as a result of the depreciation of properties and machines used to process, which requires

renewal.
Revenue Streams
BUSINESS STUDIES 10

Exxon Mobil Corp has had streams of revenue based on various segmented operations.

There has been a reduction of 0.8% of the oil and gas at the company, which has affected the

aspects of chemical and downstream operations Fluctuation of the oil prices has also weakened

the level of income earned in the company over a given period. There has not been constancy in

the funds due to such fluctuations. The section on technology has helped to increase total

revenue at the company, which is commendable(Shamma & Hassan, 2013). It is because the use

of advanced technology has helped to develop a unique way of deriving oil of good quality. The

section improves on capital inflow to the company. Over the weekdays oil has been on high

distribution although on the weekends there is a reduction in the number of customers.

VPC (Value Proposition Canvas)

Value proposition canvas is a strategy that aims to determine if or not the gas or oil fits

the value proposed and the expectations of the clients from the customer segments. When Exxon

mobile company indulges in the use of a unique point of selling the oil and the gas, use of the

epicenter is crucial.There is the need to leverage the strengths of the techniques used to deliver

services at the company.

Through BMC, the firm can manage to use investment innovation and creativity within

the firm. It will help to increase the performance in business, increase efficiency in the delivery

of products and also to gain more advantage fromother competitive businesses. From the finance

point of view, the use of BMC and VPC of unique selling point would create uniqueness in the

business regarding revenue streams(Kim& Min, 2015). All activities that require finances such as

leasing properties, buying machines, repairing machines that break down and paying workers

among others would be manageable.

Government partnership will help to establish better business networking throughout the

world. Other partners such as the Total oil company will help with the exchange of ideas and to
BUSINESS STUDIES 11

come up with an innovative way of extracting oil. Exxon Mobil Corp has a competent human

resource department, which makes it allows it to extract oil and the natural gas. Other key

resources include the segments at the firm, which are the primary sources of income of this firm.

The use of CSR would help the company advertise to other nations concerning the firm. Social

networking is also possible through employee training in publicity and exhibition to create more

awareness. The use of mobile phones to communicate as well as creating email addresses for

customers help to relay company’s information to clients conveniently.

Blue Ocean Strategy

The blue ocean strategy helps to capture a new demand in the market where the rate of

competition is low. The aim of the strategy is to come up with a new product which has got

superior and better features so as to make competition from other similar firms irrelevant. In the

Company under study, blue ocean strategy can be implemented if the organization is creative and

innovative. For example, the firm can come up with introduction of other products like

pesticides, manufacture quality gas, and produce high quality oil in comparison with similar

firms, among other innovations. The use of blue ocean strategy in the newly launched branched f

Exxon Mobil Corp in Australia would enable the company make huge profits. The company can

also maximize its profit through offering the same product at relatively lower price. When the

price is low, the firm will more be likely to have high demand. It would be advisable for the

company to do more research on other similar firms in the same location. For instance, acquiring

information on their pricing, technique applied in production of the gas and oil, how they handle

their customers, among others. The idea would help in identifying a gap among them and

implement in the organization thus, winning more clients. Furthermore, the market analysis on

blue ocean strategy can be easily determined by how easy the firm manoeuvres in making sales
BUSINESS STUDIES 12

in the presence other competitors as well as the growth rates the firm is exhibiting to attract more

customers (Komulainen et al., 2006). The assets and holdings that blue ocean strategy has

enough competitive strength to outdo other firms as well as the muscle power to lower prices in

restricting new entrants.

Blue Ocean Strategy draws its business focus into segments that include the management of

the core businesses that generate more revenue to the company, the creation of entirely new

business venture and the exploration of adjacent markets that are worth venturing (Cohen, 2016).

The firm further involves the leaders from each of the teams that run its various units in planning

for the goals and objectives of the firm which is to maximise the profit and maximise customers’

wants (DeFillippi, Wikström & Ripple, 2016).

Four Action Frameworks

The four action framework was developed by Kim and Mauborgne and it is used to

reconstructs the buyer’s value into a new element which is a strategic profit or new value curve

(Kim& Mauborgne,R., 2015). The four actions include; eliminate, create, reduce, and rise. For an

organization to manage to break the trade-off between the low cost and differentiation and create

a new value curve there is need of the use of the mentioned four value actions so as to challenge

the firm’s strategic logic.

Raise is an action that considers factors that can be raised above the organizational standard

so as to be more competitive and win more clients. The actions will motivate the business owner

to question all the dimensions used in the oil company and thus, decides on how to motivate

workers and create an innovative value curve for the business. Create action considers factors

that can be created that the firm has never offered before (Kim& Mauborgne,R., 2015). The
 BUSINESS STUDIES 13

Exxon Mobil Corp can create new ideas like selling additional products apart from oil and gas

such as farming chemicals.

Reduce help in identifying a factor that can be reduced below the firm’s standard so as to

win more clients; for example, reduce noise and improve on sanitation in the manufacturing area.

Eliminate action considers factors to eliminate so as to attain a higher level standard and make

more profit. For example, if the old strategy could not offer after sales services to the client, then

such a strategy can be eliminated and adopt a new one that could serve clients diligently.

Reduce
Improving on environmental conditions

Eliminate Create
Create a better channel to eliminate poor responsiveness to clients Involves designing better atmosphere in working s
Value curve

Table 2: The four action framework

Test Cards

A test card is used in organizations to help in designing and evaluating a newly

implemented project. The card is also used to sort out organizations’ activities in different
Raise involve improving client’s services
categories to make evaluation easier. The test can is very crucial in an organization as it helps the

management understand better on mitigations and process to undergo to perfect the results of the

project, it also help the management analyze its activities and learn if they are making a progress

or a fail in the business, can help in planning and making decision, among others. The test card is

used in many organizations and Exxon Mobil Corp can as well use it. The firm will be able to
BUSINESS STUDIES 14

notice changes in the work done after the test. There workers will boost their morale and increase

their inputs so as to maximize the set goals and objectives since the card will evaluate their

performance. It is a useful tool in business which acts as a motivation technique. When the firm

notices a failure, it will seek further advices and mitigations instead of just moving on without

any measures taken when there is no test card usage in a firm. The management in Exxon Mobil

Card should learn more on test card and be using it by the end of the firm’s financial period. The

test cards can be used in Exxon Mobil Corp to explain business objectives and verifying blue

ocean strategies taken. The test card will help to show if the blue ocean strategies taken will help

to increase demand for gas and oil in the firm (Ciancarini et al,2017). For better verification of

the test card, Exxon Mobil Corp management can interview clients and take a record of their

responses on quality on services offered (Capsey, 2010). The technique applied will help the

management improve on services offered in case of complaints from the clients as well as adjust

on strategies taken in case there is an adverse effects on the already implemented ones.

Conclusion

In summary, the results of the business model canvas and value proposition canvas has

shown that Exxon Mobil Corp can perform better upon implementation in Australia. Thus,

investing time and money in conducting the business in Australia would provide good returns as

well as create employment for citizens, especially the youth. Throughthe use of the canvas

model, the business can provide quality services and also increase demand for its manufactured

products. The model can also help the management to decide on a standardized price to charge

clients from the customers' segment details. Thus, the use of BMC and VPC will help to meet the

needs of clients and also increase demand for the products thus maximizing the firm’s profit.
BUSINESS STUDIES 15

References

Bartoloni, E., & Baussola, M. (2017). Driving business performance: innovation

complementarities and persistence patterns. Industry And Innovation, 1-21.

http://dx.doi.org/10.1080/13662716.2017.1327843
Capsey, M. (2010). What is our unique selling point?. Journal Of Paramedic Practice, 2(6), 242-

244. http://dx.doi.org/10.12968/jpar.2010.2.6.48793

Ciancarini, P. et al., 2017. Knowledge Engineering and Knowledge Management: EKAW 2016

Satellite Events. Cham: Springer International Publishing AG.

Cohen, B., 2016. Making Sense of the Many Business Models in the Sharing Economy .View at

10 June 2018 <http://www.fastcoexist.com/3058203/making-sense-of-the-many-business-

models-in-the-sharing-economy>

Cohen, M. and Sundararajan, A.,2015. Self-Regulation and Innovation in the Peer-to-Peer

Sharing Economy. 82 University of Chicago Law Review 116.View at 9 June 2018,

<https://lawreview.uchicago.edu/page/self-regulation-and-innovation-peer-peer-sharing-

economy>

DeFillippi, B., Wikström, P., & Rieple, A. (2016). International perspectives on business

innovation and disruption in design. Edward Elgar Publishing.

Ebel, P., Bretschneider, U., & Leimeister, J. (2016). Leveraging virtual business model

innovation: a framework for designing business model development tools. Information

Systems Journal, 26(5), 519-550. http://dx.doi.org/10.1111/isj.12103

Fernando, R., 2015. Strategic Corporate Sustainability: 7 Imperatives for Sustainable Business.

Singapore: Patridge Publishing.

BUSINESS STUDIES 16

Foss, N. and Saebi, T., 2015. Business Model Innovation: The Organizational Dimension.

Oxford: Oxford University Press.

Imke, S. (2016). Applying the business model canvas. Colorado: CreateSpace Independent

Publishing Platform.
Jagabathula, S., Subramanian, L., & Venkataraman, A. (2015). A Data-Driven Approach to

Customer Segmentation. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.2696161

Kim, S., & Min, S. (2015). Business Model Innovation Performance: When does Adding a New

Business Model Benefit an Incumbent?. Strategic Entrepreneurship Journal, 9(1), 34-57.

http://dx.doi.org/10.1002/sej.1193 Bilton, C. and Cummings, S., 2010. Creative Strategy:

Reconnecting Business and Innovation. West Sussex: John Wiley & Sons Ltd.

Kim, W. and Mauborgne, R., 2015. Blue Ocean Strategy, Expanded Edition: How to Create

Uncontested Market the Competition Irrelevant. Boston, MA: Harvard Business Review

Press.

Komulainen, H., Mainela, T., Sinisalo, J., Tahtinen, J., &Ulkuniemi, P. (2006). Business model

scenarios in mobile advertising. International Journal Of Internet Marketing And

Advertising, 3(3), 254. http://dx.doi.org/10.1504/ijima.2006.010739

Marsh, C., 2013. Business and Financial Models. London: Kogan Page.

Osterwalder, A., &Pigneur, Y. (2013). Business Model Generation. New York, NY: John Wiley &

Sons.
Pleatsikas, C., & Teece, D. n.d. The analysis of market definition and market power in the

context of rapid innovation. International Journal Of Industrial Organization, 19(5), 665-

693. http://dx.doi.org/10.1016/s0167-7187(00)00088-6
BUSINESS STUDIES 17

Ramamurti, R. (2012). Competing with emerging market multinationals. Business

Horizons, 55(3), 241-249. http://dx.doi.org/10.1016/j.bushor.2012.01.001

Shamma, H., & Hassan, S. (2013). Customer‐driven benchmarking. Benchmarking: An

International Journal, 20(3), 377-395. http://dx.doi.org/10.1108/14635771311318144