Exxon Mobil (XOM) SWOT Analysis

Exxon Mobil (XOM) SWOT Analysis

Strengths

Market Share High market share demonstrates that a company has got a huge Market power
Vertically Integrated Supply Chain When businesses depend on supplies and have a risk of those supplies not arriving in time, then a...
Incremental increase in supply According to the Economist, shale drillers can speed up production or wind it down, just as an...
Geographically Diverse Business Geographically diverse business and revenue should help shield the business from shocks in any one...
Solid Balance Sheet A stable balance sheet can help a company to overcome difficult financial times. It also allows a...
Complex Refiner When oil companies possess the ability to refine lower grade oil feed stocks, this results in higher...
Conservative Acquisition Model Conservative with capital expenditures and investments during times of high prices will help...

Weaknesses

Negative Public Perception Some industries have a negative public perception, because actions in the past have fed the...
Hostile Foreign Governments Foreign governments are hostile to international companies that make lots of profits off the...
Political Risk for Oil Companies Political risk affects all companies to a certain degree, but oil companies are frequently targeted...
Declining Oil Reserves Energy reserves decreasing without new replacements. Could lead to shrinking supply and less...

Opportunities

Energy Independence Calls for energy independence may increase spending to achieve this goal, which will increase...
Energy Companies Do Well in Inflationary Environment inflation hits consumers, they can rarely afford to cuts down in energy consumption. This means that...
Expanding Natural Gas Demand The discovery of techniques to get natural gas out of shale formations is leading to a boom in...
Purchase of XTO The purchase of XTO by Exxon is a move to profit from natural gas development and expansion in the...
Biofuel Development Biofuels consist of a wide range of fuel types that obtain their contents from biomass, which are...
Emerging Markets Demand from emerging markets is helping growth and margins. Emerging markets create new...
Low Prices for Natural Gas The low natural gas prices go, the more competitive it becomes versus coal on a BTU (energy) level....
Renewable Energy Needs Natural Gas Renewable energy depends on natural gas as a standby form of energy. Therefore, as renewable energy...
European Exploration of Shale Gas Numerous natural gas related companies are fanning out across Europe to find gas trapped in shale....
Natural Gas Can Produce Hydrogen Fuel The introduction of hydrogen fuel may become a viable alternative to carbon emitting fuel sources,...
LNG (liquefied natural gas) Liquefied Natural Gas (LNG) is becoming more popular worldwide, because it diversifies a countries...
High Fuel Prices High energy prices should benefit growth and earnings. High oil prices mean good returns for...

Threats

US Govt to Close Tax Loophole for Oil Companies The US government is considering closing a tax loophole that allows domestic and international oil...
Fuel Economy Regulation US and EU governments are planning to regulate fuel economy standards, which would put additional...
International Market The international market offers great sales and profits. The economies of scale from higher...
Political Risk Political risk increases the cost of doing business, especially in foreign territories. This risk...
Volatile Oil Industry Volatile industries increase the risk to company projections and valuation. When projections are...
Political Action Windfall tax and other politically-motivated issues may increase risk to future earnings.
Cyclical Industry Cyclical industry performance goes in line with the rest of the economy. Sometimes this performance...
Unstable governments Unstable government in oil producing countries could make the inventory supplies volatile.
Windfall Tax Political action. Windfall tax for very high profits. Could decrease cash flow if taxes are...
Alternative Energy Long term threat could be investment in alternative energy if fuel prices stay high enough for...

Exxon Mobil (XOM) SWOT Analysis Profile

Exxon Mobil (XOM) is a long established major energy conglomerate. Exxon produces, transports, and sells crude oil and natural gas throughout the world. They distribute their petroleum products and petrochemicals globally via their infrastructure, The diversity of Exxon is demonstrated by their involvement in the generation of electrical power. Exxon continues to search for yet untapped fields of natural resources, and engage in the development and marketing of petrochemicals and the resulting byproducts. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

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SWOT Conclusion

Strengths + Opportunities = 23

Threats + Weaknesses = 16

… A history of overcoming weaknesses makes it difficult for other firms to exploit their difficulties. The ability to capitalize on opportunities get rewarded with higher profits and lower costs. A good defense against threats lowers the risks that profits will decrease.

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