Exonmobile marketing
(Case study)
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Table of content:
1. Overview and description of ExxonMobil 03
2. Analysis of the case questions 07
2.1. Question 1 (Pricing strategies applied by ExxonMobil) 07
2.2. Question 2 (Buyer reactions to changes in gas prices) 09
2.3. Question 3 (Reactions of ExxonMobil towards gasoline price changes by other companies) 11
2.4. Question 4 (ExxonMobil acts irresponsibly?) 12
2.5. Question 5 (Solution for rising gas prices) 14
3. Conclusion & Recommendation 16
4. Bibliography 18
Overview & description of ExxonMobil
ExxonMobil is the world’s largest publicly traded international oil and Gas Company. The Exxon Mobil Corporation, or ExxonMobil, is and direct descendant of John D. Rockefeller’s Standard Oil Company. Formed on November 30, 1999, by the merger of Exxon and Mobil, ExxonMobil is the worlds largest company by revenue, at $405.billion for the fiscal year of 2007, having interchanged this status with Wal-Mart in recent years. Furthermore it is also one of the largest publicly held corporations by market capitalization of $390 billion. While it is the largest of the six oil [1]“super majors with daily production of 4.18 million BOE (barrels of oil equivalent) in 2007, this is only approximately 3% of world production and ExxonMobil's daily production is surpassed by several of the largest state-owned petroleum companies”. When ranked by oil and gas reserves it is 14th in the world with less than 1% of the total. Currently the company ranks #1 in the world in net income, which was almost $40 billion last year.
[2]Market Capitalization in $billion in the Gas and Energy Industry
Therefore, as the graph above illustrates ExxonMobil has just an overwhelming stake in the energy industry. For instance, Royal Dutch Shell is in terms of market capitalization half as big as ExxonMobil. The