Exxonmobil's Six Paths Framework

Superior Essays
Six Paths Framework
Kim and Mauborgne (2005) assert that in order to break out of red oceans firms must break out of accepted boundaries that define how they compete (p. 48). In fact, breaking out of boundaries is the first principle of the blue ocean strategy and based on that principle the six paths framework was created. The six paths challenge six assumptions that companies tend to follow while creating their red ocean strategies. Within those assumptions, companies tend to focus on the same buyer group, they define their industry similarly, focus on being the best in that industry, and focus on the same point in time (Kim & Mauborgne, 2005, p. 48).
Path 1: Look Across Alternative Industries
Because a company competes within its industry and with companies in other industries that produce alternative products or services, the first path encourages a company to look across those alternative industries. This includes products or services that have different functions and forms but share the same purpose (Kim &
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ExxonMobil has focused on how to evolve over time. In particular, they’ve achieved this by developing engine oils that are environmentally friendly. Motor oils and other industrial lubricants are vital to our economy and living standards. However, technological advances are redefining the motor oil industry. Therefore, ExxonMobil faces a new challenge in the future. With the rise of electric cars, the reliance on motor oil and lubricants will decrease. More and more car manufacturers are starting to build electric models that attract customers who are looking for economical feasible vehicles or concerned about the environment. As previously stated, electric cars do not need motor oil to operate, consequently, ExxonMobil will have to come up with a way to make an impact and appeal to existing customer as well as

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