Exxon Mobil Corporation is an America based multinational oil and gas company. It is headquartered in Texas. The company is considered as one of the biggest publicly traded energy and chemical manufacturers and providers. It applies the next-generation technologies for helping responsibly and safely to meet the demand of the people. Exxon Mobil has evolved itself from regional marketer of the Kerosene to chemical and energy innovator (Exxon Mobil, 2020).
VRIO Analysis of ExxonMobil
VRIO analysis helps the company in analyzing the resources and capabilities of the company with a framework of components. VRIO is an acronym of Value, Rarity, Imitability, and Organization. These components help the company in achieving competitive advantage, which strengthens the position of a firm in the industry. Here is the detailed VRIO analysis of Exxon Mobil.
Value
This is the first component of the VRIO model, which focuses on the resources to be valuable. The company can consider resources and capabilities to be valuable when it brings efficiency in the business operations. The valuable resources are important for the business as it helps in exploiting the opportunities. Exxon Mobil has achieved world recognition in oil and gas industry. Technological advancements is a highly valuable resource for the company as it helps the company in meeting the demand of more and more customers in most economic way. The company has already evolved itself to great extent and still working hard to provide the good quality service to its customers (Saunders, 2015).
Rarity
This is the second component of the analysis, which emphasis on the rare resources to be acquired by the company. Resources are needed to be rare and acquired by few or one company so that not every company can use it in the same way to gain benefits. Exxon Mobil has implemented strategies in the business operation to achieve the strong position in the industry. However, it is operating in the oil and gas sector, where all the competitors are having same resources to wok with. The company will be able to achieve competitive parity instead of competitive advantage for longer run (UK essay, 2018).
Imitability
This component deals with the capabilities and resources of the company to be costly to imitate, or which substitutes are not easily available. Making the resources unique is one of a good point for the company as it can attract more customers because of exclusivity. Exxon Mobil’s operations and technological advancements are costly to imitate. It invests more on its research and development to find new opportunities to improve its operations. Its efficient distribution system is helps the company in cost reduction and more profits. It is able to take benefits of economies of scale to gain more recognition in the industry (UK essay, 2018).
Organization
This is the last component which is very important for the companies as with out them, it is impossible to achieve competitive advantage. The resources and capabilities of the company should be organized or else it will not be able to bring benefits in the company and will be a mess. Exxon Mobil has well-organized organizational structure along with defined hierarchy. The employees of the company work devotedly for the benefit of the company and achieve target goals. The company is organized in its operations. It maintains good relationship with its customers and other stakeholders (Saunders, 2015).
Conclusion
Exxon Mobil is one of the leading energy and chemical providers in the industry. The company has work hard and grow itself to compete in the industry. It has achieved competitive advantage and earn much recognition. It is continuously improving its services to gain more benefits.
| Resources/Capabilities | V | R | I | O | |
| Supply Chain | ✓ | ✓ | ✓ | Competitive advantage | |
| Inventory management | ✓ | ✓ | Competitive advantage | ||
| Brand Equity | ✓ | ✓ | ✓ | Competitive advantage | |
| Marketing | ✓ | ✓ | Sustainable advantage | ||
| Product quality | ✓ | ✓ | ✓ | Sustainable advantage | |
| Talented HR | ✓ | ✓ | Competitive parity |
References
ExxonMobil, 2020. About us- who we are. [Online], Available at: https://corporate.exxonmobil.com/Company/Who-we-are, [Accessed on: 19th May, 2020].
Saunders, R. 2015. Strategic analysis of Exxon Mobil. [Online], Available at: https://www.slideshare.net/RickSaunders4/finalcapstoners-54972428, [Accessed on: 19th May, 2020].
UK essay, 2018. Strategic Management of ExxonMobil. [Online], Available at: https://www.ukessays.com/essays/management/strategic-management-on-exxonmobil.php?vref=1, [Accessed on: 19th May, 2020].