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Consulting brief: Shell Oman Marketing Company

3.2 Consulting plan/ New product line

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Expected deliveries:

What are we expecting to deliver to Shell Oman?


What is the timeline of our delivery over the next few months?

Measures of success:

How do we measure our success?

Consulting brief: Shell Oman Marketing Company

1. Current Situation

1.1 Basic Company Information


Established in 1958, Shell Marketing (Oman) Ltd became a public limited company in 1997 and was renamed Shell Oman Marketing Company SAOG.

Ownership of the company is shared between Shell, with 49%, and private investors, many of whom are members of the Omani public. This ensures that the company not only benefits from Shell’s world-class marketing expertise, it’s also able to utilise first-hand knowledge of the Sultanate’s business needs and practices.

Today, Shell Oman Marketing provides services and sells a wide range of Shell automotive, aviation and marine products, including fuels, lubricants and greases (DOWNSTREAM FOCUSED). SOM also has a network of over 200 Shell retail service stations strategically located throughout the Sultanate.

1.2 Vision and Mission

Mission : “To enhance profitability through innovative management strategies while ensuring cost-effectiveness and harnessing creative ideas.”

Vision : “To be the market leader and deliver the best value to our stakeholders.”

 1.3  Product and services

 Oil marketing industry: % contributions to turnover (2016-2019)

Sector / Year2016201720182019
Aviation711* (Aviation, Marine & Bitumen)1014
Commercial Fuels9/12
Turnover (RO mn)392.9465.8528.9524.8
Gross Profit (RO mn)39.437.935.736.5
Net Operating Expenses (RO mn)28.029.527.028.4

1.4 Core Competencies

Innovation: Shell utilises a new Vehicle Registration System for company fleet vehicles in Oman. Shell utilises a new Vehicle Recognition System (VRS). Company vehicles fitted with VRS are recognised automatically at VRS pumps at Shell stations. This enhances customer experiences through better convenience, control and security. VRS system means that there is no manual input in the fuelling process. Instead, the right product is dispensed to the right vehicle. Real-time online reports and invoices are available to download. Though this is a service only available for company fleet vehicles, it demonstrates innovationand offers a service unique to Shell filling stations in Oman.

Relationships: Main aviation fuel supplier to PDO’s airfields. In 2019, SAOG won a 2-year contract with Oman Air

Quality: The winning of tenders to supply key customers is a testament to high standards

Brand Image: Shell has the leading brand value of all oil and gas companies globally. In 2021, valued at $42.2 bn

1.5 Focal issue

Competitive scoping

Assess productivity of Shell Oman’s main competitors

Improve bottom line

Suggest data-driven recommendations on an industry level (to address Oman’s depleting oil reserves). This might include recommendations to enter a new market such as the chemicals segment.

Attend to Oman’s depleting oil reserves within the industry

·   Biofuels

What are sustainable alternatives to oil?

The first-generation biofuels currently available are made by processing crops or animal by-products to produce alternative energy sources for fossil fuels. Second-generation biofuels, such as municipal waste, algae, perennial grass and wood chips. These fuels include cellulosic ethanol, biobutanol, methanol, and many synthetic gasoline/diesel equivalents (EESI), 2021). After facing electric vehicles powered by renewable energy, biofuels are still the only clean energy widely available.

Some results prove that CRISPR manipulated gene expression can improve the tolerance of biofuels and provide a constructive starting point for optimizing the microorganisms that produce biofuels (Otoupal and Chatterjee, 2018). For example, plants, algae, and cyanobacteria will naturally convert carbon dioxide and sunlight into by-products. The sugar, fat, or alcohol produced are all potential alternative fuel sources.

Government energy policies are accelerating demand for liquid or gaseous biofuels for use as transport fuels. Currently, two-thirds of the rapeseed crop in the EU is used for biodiesel. In the US, bio-ethanol is using 40% of the nation’s maize crop.

First-generation biofuels made from vegetable oils often create more greenhouse gas emissions than the fossil fuels they replace. Second-generation biofuels, made from non-food ingredients such as wood, straw, residues and waste matter, are still in development and are not yet available on a large scale. The third-generation biofuels are still R&D which made from non-food (cellulosic and algae-based) resources.  

2. External Environment / Context

2.1 PESTEL analysis

2.2 Main Competitors

Oman Oil Company

Owned by the government of Oman 100%. Except for oil and gas, the company invests in power generation, energy transportation and infrastructure, oil refining, and petrochemicals manufacturing. The company has invested in more than 50 projects in 15 countries/regions.

Al Maha Petroleum

Founded in 1993, has more than 200 service stations in Oman, including convenience stores and car services. Al Maha also has commercial and aviation fuel divisions. They are committed to protecting the environment and upholding international safety standards for sustainable development

Ownership is shared between the Government of Oman (47.2%), ABS Lubricants (40.0%), and Civil Service Employees Pension Fund (12.8%)

2.3 Competitive Advantages

·  Globalization company, mature supply chain which has a lot left at the centre of generating value from our supply chain to create a competitive advantage.

·  Supply professionals play an important role in creating value across the entire supply chain

·  An incredible team of in-operations enables us to deliver innovative products to retail and commercial customers through our logistics network – how are these competitive advantages for shell?

·  Such a connected and cross-functional environment has plenty of advantages. – how are these competitive advantages for shell?

·  Attract quality talent worldwide, Enhance the company’s competitiveness by increasing the talent pool of the company

3. Strategies and Plans

3.1 Strategic objectives

·  Retain market leadership in the oil marketing industry

·  Improve bottom line by exploring data-driven recommendations

·  Competitive scoping – what does this mean? How can this benefit shell Oman

·  Explore alternative segments in the oil marketing industry (as practised by other Shell downstream marketing companies internationally)

3.2 Consulting plan/ New product line

Expected deliveries:

What are we expecting to deliver to Shell Oman? 

·  Build a new product line and supply chain. Decrease the company’s dependence on sales of petroleum products and change the company’s revenue model through innovation and sustainable strategy.

·        Shell’s gas-to-liquids (GTL) technology converts natural gas – the cleanest-burning fossil fuel – into high-quality liquid products that would otherwise be made from crude oil. These products include transport fuels, motor oils and the ingredients for everyday necessities like plastics, detergents and cosmetics.



What is the timeline of our delivery over the next few months?

Measures of success:

How do we measure our success?

Plant-based fuels for aviation and transportation have been created. More than 150,000 flights used biofuels, but the amount of aviation biofuel produced in 2018 only accounted for less than 0.1% of total consumption. Therefore, increasing the amount of biofuels in the shipping field and occupying this market will undoubtedly prove the success of this measure.

4. Financial Analysis

In light of the economic impact of the COVID-19 pandemic and the parallel challenges in the market, the Board of Directors has decided to propose to the shareholders that no Dividend be distributed for the year ended December 31, 2020. 2020 Full-year Revenues were OMR 367 million, lower than the same period last year due to the continued impact of COVID-19 on sales volumes Full-year Gross Profit was OMR 27.2 million, lower than the same period last year mainly due to reduction in sales volumes across all businesses during the pandemic and the decline in petroleum product prices. Profit and Comprehensive Income for the year 2020 was OMR 2.584 million, lower than the same period last year, mainly due to the drop in Gross Profit

5.  Risk Analysis

5.1  SWOT Analysis


The strong brand recognition of the company helps in gaining the most share of the customer base and overperforms over performs the other brands. 

It has a significant supply chain of suppliers who prefer to provide the company with all the raw materials without switching to other oil brands


The profit generation and the overall contribution ratio in the market is comparatively less than its competitors

Poor analysis of the customer demand rate and hence overlooked various opportunities, which shifted to the competitors.


New trends in the customer demands open up doors for Shell Oman to create more revenues and diversify product categorization

Online branding helps in gaining access to more customer databases and thereby increase sales volumes.


The higher profit generation has created severe competition in the market, which obligates Shell Oman to bring up new policies and product variations.

The fluctuating laws in different markets cause the company to face legal issues.

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