Question

Discuss the competitive position and strengths/weakness of the company Conoco Phillips SPECIFICALLY in the country Australia....

Discuss the competitive position and strengths/weakness of the company Conoco Phillips SPECIFICALLY in the country Australia. How does this corresponds with dealing with the rise of globalization and the evolution of international business?

Homework Answers

Answer #1

Competitive position:

  • ConocoPhillips reported Total Revenue increase in the 4 quarter 2017 by 20.43 % year on year.
  • The sales growth was above ConocoPhillips’s competitors average revenue growth of 15.44 %, recorded in the same quarter.
  • Some of the ConocoPhillips competitors are Phillips 66, Chevron Group, Exxon Mobile Corp, Valero Energy Corp.
  • The segment of ConocoPhillips is corporate, countries and individuals looking to fulfil energy needs
  • The target group are the enterprises looking for energy for production, people for petrol, diesel for vehicles and domestic uses
  • Positioning is working for energy for the future starting from today

Strengths: The following are the strengths of ConocoPhillips:

  • ConocoPhillips is a big brand name and has a strong market position
  • The marketing strategies that this organization has are very high level and this helps in building the brand awareness
  • It is also a fortune 500 company, with approximately 17000 employees worldwide
  • This is also the largest exploration and production company

Weaknesses:

  • The main weakness for not just this organization but a lot of organizations that work on energy is the cost of environmental hazards, it takes a huge risk to excel in something that has a deeper impact on the environment
  • One of the outcomes of environmental hazards is the decrease in oil reserves and production

Opportunities:

  • Increasing fuel/oil prices are one of the opportunities
  • increasing natural gas market is also an opportunity
  • more oil well discoveries
  • increasing demand for gas and refined products

Threats:

  • Government regulations is the major threat that this company faces, since it is also accused of pollution
  • High labour costs
  • Hybrid cars not using fuel

Globalization and the evolution of International Business:

  • As mentioned in one of the opportunities, globalization due to increase in fuel/oil prices, discoveries of oil well reserves play an important role in determining the revenues and profits of the organization. This helps in improving the brand name of the organization in the global market, thus increasing the sales

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