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Low cost:

Shell oil is building a good trust with the customers, starting by lower the price considerably which will increase the demand

Shell demands affordable price for its oil/services,it is even less than average in the market. They are working on reducing their breakeven price of the company , making sure that they have a competitive sense of projects with a low breakeven price

1-) Cost leadership is another strategy which has put Shell in the limelight.

The strategy has seen shell selling its products at lower prices in filling stations all over the country. The strategy is however controlled on very many factors, for example, economies of scale is a direct benefit. Lowering the prices increases the demand, the demand then has a proportionate impact on the supply as explained by Jarach, (2017). With the demand, they can be able to control the suppliers to give them the energy product at a very low price.

2-) Shell offers wallet friendly product/service throughout the world because it has adopted vertical integration which help to manage the cost in every stage, including extracting the oil and selling these oil/ products to customers directly. Apart from that, owning 22 refiners and managing wide-ranging operations make it easier for shell to reach diversification in products and invest in technology and innovation which reduce risk and total cost.

3-) Shell uses focus strategy

Shell has brand loyalty programs like the fuel loyalty program where customers can collect points when they visit Shell, and convert these into their choice of rewards. It is their way of thanking customers for choosing them over their competitors.

QUESTIONS-ANSWERS:

We have interests in 22 refineries worldwide. They have the capacity to process a total of around 2.9 million barrels of crude oil per day (Shell share) into a wide range of products, including gasoline, diesel, heating oil. Approximately 35% of our refining capacity is in Europe and Africa, with 42% in the Americas and 23% in Asia and Oceania.

· Upstream oil and gas production is conducted by companies who identify, extract, or produce raw materials. 

· Downstream oil and gas production, which engages in anything related to the post-production of crude oil and natural gas activities.