This document is a strategic synopsis of Chevron Corporation (specifically its upstream business), and how it is positioned in today’s global energy market.
The report discusses known energy market challenges, competitor strengths and weaknesses, and the unique capabilities that differentiate Chevron from competition. It suggests how Chevron can best deliver value to its customers today, and position itself to successfully harness opportunities in future markets.
Overview and Findings
Market and Consumer Analysis:
Findings show that the Asia Pacific region (most notably, China) will remain the most lucrative market in the near-to-long term. Product demand in China will grow, and LNG (liquid natural gas) will become the predominant fuel within the next 15 years, in place of Oil. Developing countries will, en aggregate, be a parity market with China by 2030.
Competitive Advantage & Market Position:
ExxonMobil and Royal Dutch Shell constitute the main competition, against whom Chevron is significantly behind in terms of LNG reserves and discoveries. Chevrons advantage over both competitors is its environmental performance and greater ability to transform capital into increased revenue over Shell - who remains the market innovator.
Value Proposition:
Chevron should re-market itself as “safely powering your world today, for our world tomorrow” creating a powerful message to customers who have come to expect reliability and strong environmental ethics. This reminds customers of its core strength, and provides a strong internal message for company alignment. Chevron’s reliability and dependability are desirable features for customers, and these competencies insulate Chevron from catastrophic risks that may affect the longevity of the company.
Future Marketing Initiatives:
• Invest further in safety and operational excellence
• Continue portfolio/capital investments in China
• Assess the current market for acquisition & merger opportunities (including...