Comparison of Saudi Aramco and Shell Free Essay Example, 5000 words

Market sizing Saudi Aramco is targeting over 77 countries in the world. In addition, it has the largest oil reserves. It has more than enough capability of targeting large markets. Market positioning Saudi Aramco is at a higher position is the market than Shell. It is owed to the capability of Saudi Aramco to sustain large markets because of its huge reserves. RBV Analysis Saudi Aramco has an integrated value of producing crude oil. It focuses on the skill, capacity and knowledge. Shell is focused on meeting their objectives, hence making it valuable. Their products are also difficult to imitate in the market. In addition, these companies are both well organized in the manner they conduct their operations. Value chain benchmarking Saudi Aramco considered to more valuable that Shell. It is based on the difference in market positions and the markets supplies by these companies. Saudi Aramco has made huge investments in oil exploration activities. Shell is a bit lower in power, but is has adopted the use of latest technologies to help it gain a competitive advantage in the industry. Leveraging international/National/Regional competitiveness Based on the country of operation, the companies need to align their strategies in line with the markets in those countries. We will write a custom essay sample on Comparison of Saudi Aramco and Shell or any topic specifically for you Only $17.96 $11.86/pageorder now In USA, the companies should invest heavily in value addition on their products. In Asia, the oil companies are giving discounts on oil to their customers. SWOT Analysis Saudi Aramco has its strengths and weaknesses all evened out. It has a large market share. However, the oil reserves for oil and may run out at one point. These weaknesses are the same for all companies in this industry. Financial analysis tools Both companies are highly profitable because of the high of products that they sell. Oil is a major part of the world’s power source. For this reason, oil companies have large profit margins. ANALYSES Management Tools Business Model Saudi Aramco Shell Value Proposition Saudi Aramco has maintained a strong value proposition for achieving the goals that will influence the brand and it has adopted employer value proposition to attract its target group. The value proposition of Shell is that it provides best infrastructure and provides competitive return to its shareholders and to its customers and performing the social and environmental responsibility. They also provide fuel, chemicals, and lubricants for companies. Profit Model Saudi Aramco mainly contributes to around 86 % of the Government revenue.