Total oiling company
The Total Oiling Company is a known enterprise which having more than thousand branches spread all over the world. It is a French multinational which integrates Gas and Oil Company. Also to that, it is one among the six leading superior oil companies across the world which covers both oil and gas chain. These includes natural gas, crude oil products trade, and exploration of natural gas, production, refinement, petroleum product marketing and generation of power.
Total Oil Company has a clear, focused strategy which focus on the set goals by employing the distinctive capabilities and managing their quality portfolio actively.
The following are the key strategies that will realize the growth of Total Oil Company if it will be put to practice.
Quality Management
This comprises of planning, quality assurance, and steadfast improvement this is a crucial strategy in that customers always want to use top notch products of high quality. Also to this, this builds trust with the shareholders. Quality management, therefore, is an important strategy for forming a backbone to the success of the company. This intelligent strategy of offering careers to the people and many years of experience in the gas and oil industry provides confidence and skills which helps especially United Arab Emirates Countries to work successfully in the industry (Zook, 2004).
Market Penetration
This is an important strategy for any company to realize growth. Even large companies such as Total Oiling Company uses this strategy when for instance it tries to market its existing products and services that will boost its market share. Market share is the percentage of units and dollars sales in which a company holds in a market compared to all other competitors. This can only be done by the lowering of prices of the firm operational cost. I the markets in which there is small product differentiation, by lowering of the prices will help his company when increasing its market share.
Market Expansion
The market expansion growth strategy is also called the market development that comprise of selling of the current products and services in a new market. Some of the reasons why Total Oil Company may consider market expansion strategy. To start with, there may be stiff competition in which there is no longer any room for growth within the current market. In any case, if the business cannot find new markets for its products, it can be hard for it to increase the sales and the profits (Mearsheimer, 2010).
Product Expansion
Any company may expand its product line and add new features that will boost its sales and the profit margins. This is also known as product development. This is where it continues selling within the existing markets. The Total Oil Company for instance has capitalised on this strategy in that it started operating in different line that include the covering of gas and oil chain including transporting, natural gas exploration, production, refining, the marketing of petroleum products and the generation of power. This strategy works well especially when the technology starts to change (Scott, 2003).
Foreign Collaboration
Another crucial growth strategy for Total Oil Company to expand is through foreign collaboration. Collaboration in the first place refers to cooperation. This is coming together of more than one partners in a company. By doing so, there will be an act of working jointly so that each partner will realize a common goal. This will eventually increase the volume of trade and boost the outcome of Total Oil Company. This is made possible by the company because the company itself will acquire the expertise in the process of manufacturing, the gaining of technical know-how and the market and finally there would be a promoted products and services to other countries.
This also is where the both domestic and foreign firms join hands together to achieve a common goal. By coming together, the financial gap, managerial and technological gap will be removed. Other than boosting the trade of Total Oil Company, it will also serve as an important supplement to the development of the nation as a whole. Also, it will also serve to secure scientific and the technical know-how of nations (Samson, 2012).
Diversification
Another crucial internal growth strategy is diversification. This will serve and help the Total Oil Company to enter a new line of business. From earlier on, we realize that the company was dealing with only petroleum products. Through diversification, it started expanding its ways to even dealing with a generation of energy, and dealing with natural gas. This majorly is diversification business. The main type of diversification here is forward integration. This is where the company expands their activities in a way that is ahead of its present line of business.
Customer-Focused Strategies
For any business to realize growth, the opportunity most often begins with the core business of the company. Total Oil Company growth often begins with its products, customers, services, the channels and the geographical area of the company that generates the largest revenue proportion and the profits. These is where there is an evaluation of the overall performance of the core business which includes the measuring and benchmarking profitability, the rate of growth of revenue and the reputation of the firm with their most important customer (Blackhawk, 2006).
New Markets
Total oiling company can secure significantly and organizational growth by tapping and venturing into new markets. The company can successfully do this by the creation of additional demand for firm’s products and services in new markets especially where there is a competition that has not yet been fully developed. This can eventually create growth exponentially to the firm. However, the competitive vacuum will close in the instances such as this (Scott, 2003).
Outside Financing
Total Oil Company can realize major growth when it considers business financing from outside. This can be through searching for capital from banks, government agencies, private investors, venture capital firms and smaller private firms.
Conclusion
In conclusion, the Total Oil Company realizes the expansion of its operation from a simple company to multimillion company it is nowadays through the core expansion strategies discussed above. The company now has thousands of outlets that are spread all over the world. Almost every major cities and towns at least has one or more Total Petrol Station which deals with offering of petroleum services to vehicles, greases, oils, and even the petroleum gas which are used in homes for cooking. It serves a major backbone in our society by promoting the countries’ national income all over the world. Furthermore, it is one of the six superior oil company of the world which covers vastly gas and oil chain (Friedman, 2006).
References
Zook, C. (2004). Beyond the core: expand your market without abandoning your roots. Boston: Harvard Business School Pub.
Mearsheimer, J. & Walt, S. (2010). The Israel lobby and U.S. foreign policy. New York: Farrar, Straus and Giroux Sold by Macmillan.
Blackhawk, N. (2006). Violence over the Land Indians and Empires in the Early American West. Cambridge, Mass: Harvard University Press.
Samson, D. & Bevington, T. (2012). Implementing strategic change is managing processes and interfaces to develop a highly productive organization. London Philadelphia: Kogan Page.
Scott, P. (2003). Drugs, oil, and war the United States in Afghanistan, Colombia, and Indochina. Lanham, Md: Rowman & Littlefield Publishers.
Friedman, S. (2006). A history of the Middle East. Jefferson, N.C: McFarland & Co., Publishers.
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