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Exxonmobil case study SWOT and Pestel Analysis

ExxonMobil is one of the world's largest corporations. It is a multinational oil and gas business based in the United States that was founded in 1999 by the merging of Exxon and Mobil. It is the world's largest refinery. The headquarters of ExxonMobil are in Irving, Texas, in the United States. Exxon's and Mobile's history is that of a true corporate titan. The Standard Oil Company was founded by John D. Rockefeller and his partners (1870). By 1878, Standard Oil owned 95 percent of the refining capacity in the United States. This was partly accomplished by absorbing all competitors, obtaining covert oil refunds, and forming "drawback" arrangements with the railroad. It is one of the largest integrated refiners, petroleum product marketers, and chemical producers in the world. The business is active on six continents. The business now operates 35,047 gross and 29,375 net wells.

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SWOT Analysis

The SWOT analysis is a method of analysing a company's strengths, weaknesses, opportunities, and threats, such as ExxonMobil, which is one of the world's major oil and energy corporations. The firm has activities in both industrialised and underdeveloped nations throughout the world.


ExxonMobil's brand reputation is one of its most valuable assets. It is a pioneer in its field and has maintained this position for almost a century. The company's next strength is its wide portfolio, which includes expanding into new areas of the energy business while also upgrading other well-known brands. One of the company's major assets is its Corporate Social Responsibility, or CSR. By establishing a solid crisis management structure, the firm has worked hard to shed its former reputation for safety risks and oil spills.


One of its most apparent flaws is its reputation as a polluter of the environment. The firm is still being blamed by stakeholders for damaging the environment and overusing natural resources. Because of its success in the face of rising gasoline costs, it has been accused of being a selfish corporate giant. Environmental organisations have criticised the firm of failing to communicate with them, and it has shown no evidence of being transparent in its policies on becoming a greener company. Despite the fact that it has the resources and potential to do so, the firm has yet to produce alternative energy products. It instead continues to rely on oil as its main source of revenue, which is not a long-term plan.


Despite its flaws, the firm is in a position to fulfil rising energy demand in a number of growing nations, including those in Asia, the Middle East, South Asia, and Southeast Asia. If it can create solutions faster than its competitors, the firm has a chance to become a market leader in alternative energy. It has a huge potential to improve its reputation by boosting community involvement and social responsibility programmes in all of the nations where it operates.


Energy demand has been hampered by the economic recessions in India and China. Environmentalists are pressuring these countries to find new energy sources. ExxonMobil faces a danger from competitors who are rapidly developing alternative energy sources. These firms are providing more to meet stakeholder expectations than the company can provide, putting more pressure on the organisation.

PESTLE Analysis

The PESTEL study is a technique for examining the political, economic, social, technical, environmental, and legal factors that impact ExxonMobil's macro environment. Any changes in the macro-environment might have a direct influence on the firm, thus the analysis is crucial.


The importance of the Major Integrated Oil and Gas industry, as well as the political environment's stability, are key considerations for the firm. ExxonMobil is also vulnerable to military invasion, which is a political risk. Another political issue that might have an impact on the firm is corruption, particularly at the regulatory level in the Basic Materials industry. Major Integrated Oil and Gas must also address antitrust regulations. The government's interference and bureaucracy in the Major Integrated Oil and Gas business is a political problem that the firm must resolve.


Any company's plans and strategies must take into account the sort of economic system that exists in the country. Another economic aspect that the firm should consider is government interference and associated Basic Materials in the free market. Aside from that, the currency exchange rates and stability of the nation in which the company works are other essential economic factors to consider. ExxonMobil must decide whether it needs to seek cash in the local market or not, and the efficiency of financial markets is one of the economic variables that must be examined. The Major Integrated Oil and Gas Industry's infrastructure quality.


The skill level and demographics of the audience that the firm is attempting to reach are the first essential social factors to consider. Hierarchy, class structure, and power structure in society are other significant sociological variables to examine. The company's educational standard and educational level. Gender roles and social customs are all part of culture. Attitudes and free time can also be included under this factor.


ExxonMobil's competitors' most recent technical advancements. Technology's influence on product offerings. The impact of technology on the cost structure of the major integrated oil and gas sector. The rate at which technology spreads. The impact of technology on the value chain structure of the Basic Materials sector.


            Legal factors include:

  • Antitrust laws are in place in the major integrated oil and gas industry, as well as throughout the country,
  • Anti-discrimination legislations,
  • Patents, copyright legislation, and intellectual property law are all examples of intellectual property law.
  • E-commerce and consumer protection regulations
  • Employment-related laws
  • Laws governing health and safety
  • Data protection legislation


  • Green and ecological items are seen with a positive attitude.
  • Laws regulating contamination of the environment
  • Weather
  • Climate change
  • Recycling
  • Species in danger of extinction
  • Positive attitude and support for renewable energy sources
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