Marathon Oil Corporation Case Study Solution

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OVERVIEW Marathon oil corporation is United states based oil and natural gas exploration and production company. Principal exploration activities are in the U.S, Norway, Poland, angola and Iraqi kurdistan. Principal production activities are in the U.S, the U.K and Norway. Marathon Oil has recently focused development efforts on liquids - rich shale plays, including the Bakken and Eagle Ford formations. Marathon Oil owns interests developing Athabasca oil sands (Canada) resources and in Waha Oil Company (Libya). Marathon 's headquarters facility is the Marathon Oil Tower in Houston, Texas. Originally called the Ohio Oil Company in 1887, in 1889 it was purchased by J.D.Rockefeller 's standard oil trust. They remained as a part of the…show more content…
Low concentration of suppliers: means that there is a plenty number of suppliers with reduced or limited power of bargaining. Low concentration of suppliers is very positive and affected the marathon in a positive way. 2. As mentioned in the strengths of the company, the more diverse distribution channel becomes the less and weaker becomes the bargaining power of single distributor. BARGAINING POWER OF CUSTOMERS: 1. Buyers require special customizations: customers nowadays desire and want special customizations for the demanded product and would less likely switch to a supplier without the ability to offer special customizations. This positively affects marathon oil. 2. Low buyer price sensitivity: when buyer do not care about the price about the demanded product, the price of the product increases and they still will but the product. Positively affects the marathon oil. 3. Product is important to customers : when the customer wants a particular product, they will pay more for that one desired product, this positively affects the marathon oil company. 4. Large numbers of customers : this is helping marathon oil company, because limited bargaining leverage because no customer wants have bargaining leverage when there is a large number of

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