The Royal Dutch Shell is one of the biggest multinational petroleum companies, with its basis of origin in Dutch and Britain. It was considered as one of the world's largest corporation by the Fortune in 2009. From its inception in 1907 till date, it has been able to emerge as a successful petroleum country reigning in the British markets. With its operations in 140 countries, the company has been able to successfully manage their business across borders, maintaining their core principles and values across all subsidiaries, in all countries. The company has been proactive in outlining a competitive strategy, increasing the product profile and entering newer markets at the right time.
The marketing function is defined as the function is the business that identifies customer wants and satisfies them in the manner that provides them maximum returns. All over the world, marketing is used as a tool to develop new markets, to create the need for the product and these efforts translate into increased sales for the organization (Peter, 2007). Traditionally, a company has to go through five stages to become a global company. Domestic marketing introduces the product to the country's market. Exports start once foreigners start demanding the product. When the company believes that they have sufficient market across the country and beyond for them to start their penetration in those markets, International marketing starts taking place. International marketing terms to be fruitful when export marketing reaps profits and time barriers, cultural differences hinder the development of competitive edge in the foreign markets (Paul, 1997). Multinational strategy is then adopted. In multinational strategy, the company benefits from the economies of scale and is marketing its product across countries (Douglas, 2002). This is the position through which Shell is at. Shell's Multinational Marketing Strategy and Performance:
When it comes to performance, the company has been striving to achieve brilliance in their products and functions, so that they remain the winner. Their excellent business performance is rooted in history and till today they have been able to maintain a standard. Although some hiccups in their way to excellence have hampered the growth, they have emerged as winners in the long run.
The 1950s and 1960s mark the era in which the company was supplying one seventh of the oil products to its markets. They had been proactively in anticipating the demand for energy and take specific measures to ensure they are well versed with the newer trends that would set in their industries. For example, in the 1970s, the company ventured into gas supply as a source of energy as oil prices were hiking. Their exploration investment in the North Sea provided them with massive oil and gas reserves. The result was that they began the supplier of half of Britain's gas requirements. At this time, they ventured into metal and coal, the alternate forms of energy. Their meticulous approach towards adding newer products to the portfolio led to the development of the company.
As their consumer became user-friendly, they moved towards strategies to implement more environmental friendly operations throughout their company. All this while, they have been proactively foreseeing the trends in consumer wants and the needs of the economy and acting accordingly. Selling unleaded petrol brought them a leadership position in the whole world. Such an act brought an intangible aspect to the brand as the brand was now perceived to be a caring brand, one that cares for the environment and the people. Such a marketing tactic at the time when environmentalists were ringing warning bells regarding high energy consumption and global warming was a great move. They focused on green marketing and providing environmental friendly solutions to their customers, bringing an edge over their competitors and hence enjoyed the leadership position. The...
Bibliography: Lamont, D. Global Marketing. Capstone. 2002
The Economist, volume 373
Fifield, P. Marketing Strategy. Elsevier. 1998
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