DEVELOPMENT STRATEGY IN EXXON MOBIL

The NPD process consists of the identification, analysis of the risks, the means, or the methods used to implement this new product and benefits involved with this new product and the possible outcome engaged with this new product. Most of this essay covers the new product development process that includes Exxon Mobil Corporation. Exxon Mobil Company In the past years, Exxon Mobil has been amongst the top successful energy fuel producing companies across the world. The company, Exxon Mobil was founded on November 30, 1999, by the merger of Exxon and Mobil with its headquarters in Irving, Texas in the United States of America. Exxon Mobil produces different kinds of products ranging from chemical products such as polyethylene, patenting butyl rubber to petroleum and gas.

For instance, petroleum has been used to power up and automobiles. Due to increasingly new demands from the market or within the business organization, to meet these new demands, the company must be involved in establishing and identifying the new product. For this to come to success, most successful business organizations must come up with a procedure to introduce the new product. The managerial sector of these corporations, companies, or business entities, therefore, must incorporate the new product development strategies to ensure and prevent risks associated with these new products. There are various kinds of NPD strategies used by different companies and business sectors depending on the nature of the new products and other internal and external factors affecting the operation of the business activities.

However, every NPD strategy has its shortcomings. Some of the disadvantages that customer-driven NPD approach is the production cost can be expensive since some of the products require market research before producing them. Another drawback involves customer satisfaction. Not all consumers will be satisfied with the quality of the product. During the new product development processes, Exxon Mobil Company adopted the collaborative and the lean strategies to achieve their goals. Moreover, the analyses of these products are more straightforward than any other NPD processes. Through interaction with the clients or consumers, customer-driven NPD technique used as opposed to competitor-driven approach provides the developing and manufacturing sector with the ideal knowledge for the product. This prevents wastage of resources. Other companies enjoy the benefits of using a customer-driven approach to new product development such as Volvo automobile company.

Other examples of companies that use the customer-driven NPD strategies is the fashion and design companies such as Izod, Nine West Holdings, and Richard Edwards Fashion Company. This gives researchers and manufactures hard time to figure out the ideal outcome. This process of determining the ideal product for the consumers is quite expensive. There is also time, and monetary wastage is trying to figure out the perfect product for the consumers. An excellent example of a company that suffered from the loss of public trust and its reputation is BP Oil and Gas Company. The company was accused of reckless conduct and negligence, which was settled by the U. Due to the improved sales showed by statistics on Exxon Mobil oil products, great investors and economists such as Andrew P Swiger, Mark Albers, and Rex Tillerson have shown interest into the company (Axon, 2018).

Eventually, the company has been ever-growing as their shares gradually increase in value compared to other rival oil producing companies such as Chevron Corporation and Valero Energy Corporation. For instance, the share prices in Valero Energy Corporation have been reducing for some time. The customer-driven strategy has served over the years to Exxon Mobil Company as one of the most common and safe procedures used in new product development. Recommendation The risks involved with a consumer-driven approach can ruin the company’s reputation and more loss of trust by the market. This and many more measures have been adopted by the company to avoid oil spills. Moreover, Exxon Mobil Company has been using the risk analysis strategies such as SWOT analysis to prevent all these risks.