Long Term View of Business: Exxon Mobil Adds Oil Sands Reserves

March 4th, 2009 by

 By Pat Hinds

When I work with companies on strategic vertical and account selling, one of the primary objectives is getting them to take a long-term view of strategic selling versus the short-term view of product selling.  If you study the best companies in the world, you will see the positive results of having a long term view of doing business.

An example from the oil and gas industry is ExxonMobil; a recent article in the Calgary Herald points out how Exxon doubled its reserves in Canada’s oil sands in 2008, while rivals scaled back projects – at: http://www2.canada.com/calgaryherald/news/calgarybusiness/story.html?id=8dcae710-c159-42d1-b3bd-9cb4f106678d.

If Exxon was to only take a short-term view of business, they would let the negative press of low oil prices, carbon footprint, and the high cost of production in the oil sands to dissuade them from continuing to invest.  Exxon understands that the Canadian oil sands are the second largest oil reserve in the world; as a result, they have doubled their reserves from 694 million barrels to 1.8 billion, targeting 100,000 barrels of oil production a day by 2012.  Exxon knows that supply and demand will drive the price of oil up and technology will reduce the cost and carbon footprint from oil sands production, making the long term investment profitable.  This type of thinking is the reason Exxon is the number one oil and gas company in the world.

It you translate Exxon’s long-term oils sands view to strategic vertical and account selling tactics, you will see the similarities:

 Tactics

Oil sands

Vertical & Account Selling

Total Market Opportunity

Exxon understands that the oil sands are the second largest oil reserves in the world and their core business is oil & gas production.

Strategic vertical selling is the ability to identify verticals that offer a large market opportunity and the product suite solves a business problem.

Strategic Account Market Opportunity

Exxon has taken a position within the oil sands region and has committed the resources to maximize the market opportunity.

Strategic account selling is committing the resources required to maximize the revenue within a strategic account in order to take the desired market share of the total market opportunity. 

Customer Alignment

Executing the tactics that are required to lower the cost of production and making the oil sands profitable.

Executing the tactics required to ensure that your company and products are aligned with the target company’s requirements.

Personal Alignment

Executing the tactics that are required to lower the carbon footprint of the oil sands to ensure long term viability.

Executing the tactics required to meet the requirements of individual personal within a strategic account that impact your ability to take market share.

Opportunity Alignment

Developing individual projects in the oils sands with partners or as a stand alone company.

Maximizing multiple opportunities within a strategic account by aligning with the customer and their specific requirements.

 

Topics: Business Intelligence