Name: Riya Modi
SAP ID: 500081151
Batch: BBA (Oil and Gas Marketing)
Course: Business policy and strategy
Question: Analyse the Business Models of Any select company.
Answer: To gain deep knowledge about the business model I’ll take the example of a
company from the oil and gas sector- Saudi Aramco.
Overview:
Saudi Aramco, often known as the Saudi Arabian Oil Enterprise, is a public Saudi Arabian
oil and gas company. With more than 270 billion barrels of proved crude oil reserves, Saudi
Aramco has the world's biggest daily oil production and second-biggest proved crude oil
reserves among all oil-producing firms. Saudi Aramco also runs the Master Gas System, the
world's largest single hydrocarbon network.
The business model of Saudi Aramco:
1. Key Partners:
Saudi Aramco has a large number of strategic partners and joint ventures. Aramco
Power, Saudi Aramco Lubricating Oil Refining, Power Cogeneration Plant, Rabigh
Refining & Petrochemical, Fadhli Plant Cogeneration, Wisayat Al Khaleej
Investment, Aramco Overseas Company, Europe, Aramco Services Company, North
and South America, Saudi Aramco Asia Company Ltd. Beijing, China, Dhahran
Techno Valley Company, Women Business Park, and others are among them.
2. Key activities:
Saudi Aramco's main activities are global operations that encompass exploration,
production, refining, chemicals, distribution, and marketing. Saudi Aramco's principal
business is extracting oil from the earth and selling it on the international export
market, with the United States, India, and China as its top customers.
3. Key resources:
Production of crude oil petrochemicals and petroleum refining Ammonia and
industrial gases, sodium hydroxide, cement fertilizer plastics metals ship repair
aircraft repair construction, oil, gas, harnessing the power of chemicals, refined
products, retail fuels, and newer Customs are all part of Saudi Arabia's international
export market, with the United States, India, and China as its top customers.
4. Value proposition:
From transportation fuels to sophisticated materials, the company's extensive and
expanding product portfolio adds value to not just its customers, but also to its
partners and shareholders. The corporation is in charge of managing the Kingdom's
unique hydrocarbon resource base, ensuring that production is optimized and long-
term value is maximized. Saudi Aramco has a global downstream business that is
strategically desegregated. Saudi Aramco has dedicated downstream infrastructure
and delivers upstream production to a high-quality external client base. Through
supply, trading, distribution, and retail operations, Saudi Aramco also supplies high-
value products to the Kingdom and worldwide in big and high-growth markets. These
are the values that the company provides to its customers.
5. Customer Relationship:
Although Saudi Aramco and many countries have long had a supplier-customer
connection, the company's activities are divided into four areas like
business origination
marketing
quality management
strategic sourcing and supplier relationship management.
6. Customer segments:
Saudi Aramco's target market is Asia, where 70% of its exports are sent. China, India,
Japan, the Philippines, and South Korea are the six key Asian markets where the
corporation is the largest provider.
7. Channels:
Customers can contact Saudi Aramco through a variety of channels, including
government agencies, social media platforms such as Facebook and Twitter, and so
on. Saudi Aramco maintains contact with the nations.
8. Cost structure:
Saudi Aramco's operating costs from 2017 to 2019 were around 150 billion US
dollars, and Saudi Aramco was ranked the most profitable business in the world
according to its credit rating, surpassing Exxon Mobile and Apple.
9. Revenue streams:
Because to the worldwide pandemic, coronavirus or covid-19, Saudi Aramco's
revenue in 2020 will be a loss of US $229.9 billion.
