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Mobil Oil: Defending market leadership in synthetic lubricants in China. Comment on Mobil Oil: Defending market leadership in synthetic lubricants in China
Author(s) -
Chen Ivy S. N.,
Deng Lihua,
Luk Sherriff T. K.,
Wong Chiho,
Lee Philip
Publication year - 2008
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.20193
Subject(s) - china , lubricant , position (finance) , business , market share , commerce , marketing , finance , engineering , law , mechanical engineering , political science
China's lubricant market was dominated by PetroChina and Sinopec. Foreign brands together controlled about 25% of the market, and these brands offered the higher‐grade lubricants. Most vehicle lubricants used in China were low‐grade lubricants. However, this was expected to change. Continued economic growth and rising incomes had led to increased demand for cars. New models and luxury cars would likely stimulate demand for higher‐grade lubricants. The case focused on synthetic lubricants of which Mobil was the market leader. Mobil's leadership position here was being threatened. Local brands were gradually improving in quality, and a few have secured rights to supply joint venture car manufacturers. Armed with deep pockets, their aggressive advertising had helped their brands gain prominence. The case required some recommendations on how Mobil should respond. © 2008 Wiley Periodicals, Inc.