Case (1) Exxonmobil

1138 Words Jul 4th, 2012 5 Pages
marketing Management

Case (1) ExxonMobil

1. Which, if any, of the pricing strategies discussed in the chapter are being applied by ExxonMobil and other oil companies? Could they adopt any other strategies?

ExxonMobil and other companies in the retail oil industry are working in monopolistic competitive market. The market demand in oil industry is inelastic in short run and all the companies have their own share in oil demand. In the monopolistic competition like in the case of ExxonMobil and other retail oil companies, prices are usually set by the forces of demand and supply prevail in the market. However, companies in this situation usually try to gain maximum profits and they also want that
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These may also include the restrictions regarding the oil stock limit and in some circumstances sales restriction of the oil. If ExxonMobil’s business behavior is examined then it reveals that the operational network of the company is very vast. There are many possibilities that ExxonMobil may be indulged in illegal price hike. But if public policies are also be kept in mind then it can be said that in lack of strong leadership and without more strict but a just public control over the affairs of such a huge organization may have the potential possibilities of such malpractices(Barron, Taylor, and Umbeck, 2001).

5. How would you “fix” the problem of rising gas prices? Consider solutions for different groups, including governments, corporations, and consumers. What are the advantages and disadvantages of your proposed solutions?

There might be many possible solutions in fixing the problem of rising in the gas prices. If we look at the governments, they should have a very big responsibility on their shoulders. Provision of a strong public policy particularly regarding the gasoline management, with a strong and capable leadership which is capable enough to enforce implementation of these policy rules is the major responsibility of the governments to control any sort of price hikes in gasoline. Corporations are also very much responsible in whole the scenario. They

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