Indian Oil Company Case Study

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IOCL is India’s largest oil company and one of the main company in the fortune 500. It has various products such as Oil, Natural gas, Petroleum, Lubricants and fuel. It is one of the biggest public sector company which has the prominent market share. Indian oil has subsidiaries more than 46% share in petroleum products, refining holds 40% share in the market, out of 21 refineries in India Indian oil holds 10 refineries. and the downstream operation has 65%market share In the year 1964 growth of Indian Oil Corporation happens through merging through Indian oil company limited and Indian refineries limited together forming Indian oil corporation. The companies merged are Assam oil company 1981-chennai Petroleum Corporation in 1965, IOBL in 2006,…show more content…
OVERALL COST LEADERSHIP The product especially from the retail lubes sector are priced low compared to the competitors. The engine oil of IOCL product is Rs 130/litre while Castrol cost Rs 150/litre .The products are given at 25-28% cheaper prices compared to other competitors. As the IOCL have huge profits through economies of scale. It has very less advertising cost compared to its competitors. 2. DIFFERNTIATION IOCL came out with a differentiation strategy of using agro spray, helps the fruits from getting contaminated which kills the pest by suffocating it, and it has been very low priced. The product line of Indian oil Corporation is huge. Some of the variety of products is like diesel, petrol, naphtha, kerosene, aviation turbine fuel, paraffin, lubricants and bitumen. And their most prominent brands are Indane LPG, Xtra premium petrol, Auto gas, Servo lubricants and Indian oil aviation. 3.DEFENDING ITS MARKET SHARE Market share of Indian oil: Indian oil has subsidiaries more than 46% share in petroleum products, refining holds 40% share in the market, out of 21 refineries in India Indian oil holds 10 refineries. and the downstream operation has 65%market…show more content…
FORWARD INTEGRATION Forward integration refers to propel and lubes together which dominates. Strategic enabler - Logistics: The facilities used by IOCL include sea, rail, and road. IOCL also provides for fuel for aviation purposes and defence purposes. Customers base : Services provided include toll free number to take care, to give customer feedback through electronic feedback system , IOC loyalty program, vibrant website which helps customer to have knowledge about company’s product, for LPG service they had unique services GRAND STRATEGY The responsibilities of the company is to be responsible towards customers, suppliers, employees, community and defence services usually for the national interest, smooth maintenance, self-sufficiency etc. GROWTH –MERGERS AND ACQUISITION In the year 1964 growth of Indian Oil Corporation happens through merging through Indian oil company limited and Indian refineries limited together forming Indian oil corporation. The companies merged are Assam oil company 1981-chennai Petroleum Corporation in 1965, IOBL in 2006, IBP Co.ltd 2007 and BRPL IN 2009 with Indian Oil

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