Business Model of Total

Topics: Petroleum, Marketing, World energy resources and consumption Pages: 10 (3132 words) Published: January 21, 2013
1 Introduction
There is no special and particular slogan used by
transmit through its products. Total is using different slogans for their several kind of product lines in the countries, where they sale the products. “Winners fill up with TOTAL!” is the slogan in Germany for the B2C segment for their filling stations. The slogan is based on the sponsoring for the actual world champion.1 In the Asian and Pacific area

slogan. “TOTAL, a reliable and
used in the fishing and inland marine sales sector.
company has activities in more than 130 countries in every sector of the oil and gas industry. TOTAL grew up with the rising dema
and gas. The development of the
in oil.
Figure 1: World Energy Consumption
In this constantly growing market
and still managed to operate around the globe. But what kind of business model does TOTAL use to be successful to such an extend? The paper will give an overview about the global spheres of business of Total and main B2C business in the European region.

2 GP concerning Singapore
TOTAL, which strives to
!” TOTAL uses a very simple
, professional partner” is the slogan, which is
2 For a brief century now the
demand for energy, especially in oil
consumption is shown in figure 1, measured
TOTAL knew it how to make the
ss 1
, fillingstations.
formula one
nd correct steps
mainly focus on the
2 Company Profile - TOTAL
The former “Compagnie francaise des pétroles”, now TOTAL S.A., is founded on March 28th in 1924, together with its subsidiaries and affiliates. The history of TOTAL began in the Iraqi sands in the 1920s. TOTAL began its Upstream in the Middle East in 1924. Over the past decades the company grew up, developed and expanded its presence throughout the world. Since 1999, the company has strengthened itself by merging with PetroFina and, at the beginning of 2000, with Elf Aquitaine, so as to join the small club of oil and natural gas majors. Today TOTAL is one of France largest corporations and the world´s fifth largest publicly-traded integrated international oil and gas company.3 TOTAL is committed to meeting growing energy demand while consistently acting as a responsible corporate citizen.4 The company is registered in office 2, place Jean Miller, La Défense 6, 92400 Courbevoie, France. Up to and including the fiscal year 2011, TOTAL, with all its subsidiaries and affiliates, employs 96.104 people.

3 Business Model Canvas – applied by TOTAL
“A business model describes the rational of how an organization creates, delivers and captures value.”5 The Business Model Canvas uses nine different perspectives, in order to portrait where the value of a company is created. It focuses on customer segments, value propositions, distribution channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.6 The following sections are going to elaborate the theoretic basis of the Business Model Canvas and how it is practically applied by TOTAL.

3 Based on market capitalization (in dollars) as of December 31, 2011 4 GP
5 Osterwalder/Pigneur (2010) P.18
6 Osterwalder/Pigneur (2010) P.20f.
3.1 Customer Segments
Customers are the heart of every business or commercial model. Therefore they are one of the most important stakeholders of a company and to have them is the basis requirement for an economic venture. In order to be successful on the market, products should be designed according to customers´ needs. Those needs can either be common or rather specific. Customers should be segmented. This depends on different expectations towards profitability, distribution channel or especially the price. Those segments are also divided in groups like common needs, common behaviors or other characteristic features. Kinds of customers segments can be the mass market or the alcove market.7 As general definition customer segmentation is understand as the act of separating a group of clients into sets of similar...
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