StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Wide Product Mix of ConocoPhillips Company - Essay Example

Cite this document
Summary
The paper "Wide Product Mix of ConocoPhillips Company" discusses that ConocoPhillips is the third-largest integrated energy company in America, based on market capitalization, oil and natural gas reserves, and production. It engages in four core activities worldwide…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Wide Product Mix of ConocoPhillips Company
Read Text Preview

Extract of sample "Wide Product Mix of ConocoPhillips Company"

The company is vertically integrated and is actively engaged in operations from upstream (oil exploration and production) to downstream (oil refining and marketing). From its vast operations base, ConocoPhillips has seen its revenues steadily increase over the past few years as shown in Figure 1 below:

Figure 1: Marketing Revenue trend for ConocoPhillips (“Marketing Revenue for ConocoPhillips (COP) - Wikinvest”)
Porter’s five forces model
The energy industry – in particular oil – has been experiencing slow growth which has led to intense competition among the existing companies. Also, its capital-intensive nature and the limited options for converting existing equipment to other use imply that even where a company is facing difficult times, there are high exit barriers to overcome. Probably the only viable alternative for companies in this industry is to merge or acquire others to derive economies of scale.

Nevertheless, despite the intense competitive rivalry, ConocoPhillips and its competitors are in an industry with minimal threat of new entrants to either its upstream business – which requires huge investment in equipment, research and technology, and strategic sites – or its downstream business – that requires huge investment in distribution, logistics, and marketing. The fact that the major players (ConocoPhillips, ExxonMobil, and BP) are vertically integrated increases the barriers to entry further.

Another great advantage of vertical integration to these three major players is that it gives them great bargaining power over both their suppliers and buyers. However, the latter may be significantly better placed than the former in the sense that oil is now considered a commodity. This means that oil products from BP or ConocoPhillips of ExxonMobil do not significantly differ thus the buyer has some leverage to seek lower prices and better contract terms (“The Industry Handbook: The Oil Services Industry”).

Finally, although renewable energy sources have been and continue to be the rave over the last decade or so, they still offer limited challenges to oil as substitute products. The energy demands in the United States and abroad far outweigh what the alternative fuel sources can support. It is also important to remember that oil is used for more than just running our vehicles; it is also used in the manufacture of plastics and other materials (“The Industry Handbook: The Oil Services Industry”).

Furthermore, big oil corporations such as ConocoPhillips are also investing in renewable energy technologies. This strategy means that if there reaches a time when alternative fuels offer a serious challenge to the oil cash cow, these major players will have developed the core competencies in renewable energy that will be the wellspring of new business development and shall sustain their competitive advantage at that future date (Hamel and Prahalad 14) Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Conoco phillips Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Conoco phillips Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/marketing/1585035-conoco-phillips
(Conoco Phillips Essay Example | Topics and Well Written Essays - 500 Words)
Conoco Phillips Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/marketing/1585035-conoco-phillips.
“Conoco Phillips Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/marketing/1585035-conoco-phillips.
  • Cited: 0 times

CHECK THESE SAMPLES OF Wide Product Mix of ConocoPhillips Company

Operations Management of BP Plc

In the recent past, the company has reinvented itself with an aim of increasing revenues and overcoming the emerging threats in the oil industry.... Each company has a distinct way of dealing with its operations (Merz & Sauber1995).... BP is a multinational company that has a vibrant operational and management department.... he company needs to reinvent itself to maintain its profitability.... The company is also facing threats that range from new entrants to the established oil companies....
9 Pages (2250 words) Essay

Engineering Economy and Geo-Resource Evaluation and Investment Analysis

This term paper "Engineering Economy and Geo-Resource Evaluation and Investment Analysis" is about reporting the performance of a company's events versus its variation in stock value.... It studies ten key events in Exxon Mobil, which is the company of choice.... The events are about the important management of the Economy of the company and the behavior of the company stock.... Exxon Mobil Oil company is the largest among the major oil companies vertically integrated in the New York Stock Exchange....
15 Pages (3750 words) Term Paper

Mesaba Energy: Utility-Scale Power Plant

This case study "Mesaba Energy: Utility-Scale Power Plant" is about a new utility-scale IGCC power plant using conocophillips' E-Gas™ technology for Coal gasification.... The gasification process that MEP will use is conocophillips' E-Gas™ technology....
5 Pages (1250 words) Case Study

The Mesaba Energy Project

The conocophillips E-Gas technology is the basis of the gasification process – to convert coal into synthesis gas and clean the gas of impurities before burning.... This report "The Mesaba Energy Project" focuses on a 603-megawatt Integrated gasification combined-cycle power plant, located on the Iron Range....
7 Pages (1750 words) Report

Business Environment

Yet again, the company which is mainly based in the United Kingdom has faced numerous Although the organization is well capitalized and enjoys a global presence, its reputation has constantly been at stake following several fines related to environmental pollution and inadequate maintenance of equipment and facilities.... The company has also been accused of ranking poorly in terms of upholding human rights according to some quarters.... In view of the company's business environment, it may well be concluded that the company has a bright future although it needs to make certain adjustments to continue achieving astronomical growth....
20 Pages (5000 words) Essay

Investing in Stocks Bonds and Commodities

The current paper "Investing in Stocks Bonds and Commodities" has highlighted the importance of commodities as an inclusive item in an investment portfolio, because they tend to fare well when inflationary trends following a recession exist, and they also do well in the long term.... ... ... ... The report below summarizes the results from a stock market watch, using a portfolio comprised primarily of commodities and devoid of bond investments, although it does contain some equity shares....
11 Pages (2750 words) Research Paper

Tyson Foods and its Importance to International Business

Tyson Foods is a world-class company serving in the food industry.... The company has a great reputation and green image with respect to its product's safety, purity and customer service.... New creative ideas are another room for the company to excel.... Tyson Foods is a food producing company working inside the United States and across the border with truth and integrity and dedication to create value for its clients, shareholders and working staff (www....
11 Pages (2750 words) Term Paper

The Exxon-Mobil Merger

Thus with Exxon-Mobil and other big oil producers in the US such as conocophillips and Chevron making machinery for oil extraction.... The paper "The Exxon-Mobil Merger" describes that the new corporation's board of directors comprised of 6 employee directors and 13 non-employee directors who were all part of the members....
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us