Business Model of Total Essay

1 IntroductionThere is no finicky and particular slogan used by transmit through its increases. entirety is apply distinguishable slogans for their some(prenominal) kind of product lines in the countries, where they change the products. Winners fill up with score is the slogan in Germany for the B2C segment for their cream stations.2 Company Profile TOTALThe former Compagnie francaise des ptroles, now TOTAL S.A., is founded on March 28th in 1924, unneurotic with its subsidiaries and affiliates. The history of TOTAL began in the Iraqi sands in the 1920s. TOTAL began its Upstream in the Middle East in 1924. Over the ancient decades the fellowship grew up, developed and expanded its presence throughout the world. Since 1999, the company has alter itself by merging with PetroFina and, at the beginning of 2000, with Elf Aquitaine, so as to join the sm both club of crude oil and natural gas majors. like a shot TOTAL is one of France largest corporations and the worlds fift h largest publicly-traded integrated transnational oil and gas company.3 TOTAL is committed to meeting growing competency demand while consistently acting as a amenable corporate citizen.4 The company is registered in office 2, place Jean Miller, La Dfense 6, 92400 Courbevoie, France. Up to and including the fiscal year 2011, TOTAL, with all its subsidiaries and affiliates, employs 96.104 people.3 c be Model tack applied by TOTALA channel type describes the rational of how an organization composes, delivers and captures value.5 The Business Model Canvas uses nine disparate perspectives, in order to portrait where the value of a company is created. It topical anaestheticisees on guest segments, value propositions, distribution channels, customer relationships, gross streams, paint resources, key activities, key partnerships and cost structure.6 The following sections are everyplacetaking to elaborate the theoretic basis of the Business Model Canvas and how it is a h onorable deal applied by TOTAL.3.1 Customer SegmentsCustomers are the heart of every contrast or mercantile model. Therefore they are one of the most grand stakeholders of a company and to have them is the basis requirement for an economic venture. In order to be successful on the grocery, products should be designed accord to customers demand. Those needs can either be usual or rather specific. Customers should be segmented. This depends on contrary expectations towards profitability, distribution channel or particularly the price. Those segments are also divided in groups like common needs, common behaviors or other characteristic features. Kinds of customers segments can be the mass market or the alcove market.7 As ordinary definition customer segmentation is understand as the act of separating a group of clients into sets of mistakable individuals that are related from a marketing or demographic perspective. For example, a product line that practices customer segmen tation might group its current or potential customers according to their gender, buying tendencies, age group and special interests.8 collect to the fact that TOTAL is a company in the sector of forefinger business, they are purchasing the strategy of customer segmentation to fulfill the different expectations at a best possible rate. On account of the spheres of personal credit line TOTAL operates in the area of the mass market, if you would lay a focus on the petrol production. Therefore TOTAL is one of the biggest suppliers in the merchant vessels sector. But the companys products are segmented by the different market segments.The business segment mainly focuses on 3 different branches upstream, downstream and the talent sector. These branches are divided as follows9 Upstream oil and gas transportation, development and production, liquefied natural gas Downstream refining, petrochemicals, medium chemicals, marketing and the trading and shipping of crude oil and petroleum products efficiency sector equity stakes in coal mines, operations in the power generation and renewable capability3.6 pick up ResourcesDepending on the knit stitch of business companies need different resources. According to Canvas describes the theatrical role of the key resources the most economic goods which are needed for functioning a business model.26 According to Canvas TOTAL has the four from Osterwalder/Pigneur mentioned key resources. Physically, intellectually, humanly and financially. To fag after oil and gas and to produce fuel, lubricants and other goods from that, its necessary to have appropriate production plants and equipments.Because these are capital-intensive the financial resource arises from that. To propagate pools or to allow constructing new offshore construction works the enrollprise needs the necessary financial items. Among other things these were gained in the course of the companys history. Chemicals and special fluids, also the different f uels, need the humanly and intellectually resources. The mixture of all these four resources gives TOTAL the possibility to handle its operations in 150 countries. That theres a dependence amidst the key resources is visibly with the fact that TOTAL invested 776 million for R&D in the year 2011. Its necessary to have a good combination between all key resources to get benefits of these investments.3.7 Key activitiesThe component of the key activities describes the most important things which an enterprise must do, so that its commercial model functions.27 In combination with key resources, key activities are prudent for creating unique products and services to carry out the value of the enterprise.The promotion of oil and gas, as well as the production of fuels belongs definitely to the key activeness of the company. Secondly a very important one is the know-how and the ability to create a functioning logistics network to operate through the countries all over the world with the different suppliers and customers.26 Osterwalder/Pigneur (2011) p.3827 Osterwalder/Pigneur (2011) p.40103.8 Key partnersKey partners are the network of suppliers and partners who contribute to the success of the commercial model.28 First of all TOTAL endeavors to use local suppliers of goods and services as often as its possible. This action contents to the local content programs. TOTAL stands for using local resources. Programs are aligned with the projects technical characteristics and local industry. Special key partners are not able to indentify. TOTAL mentioned by itself, that the company purchased 27 billion of goods and services from roughly 50,000 active suppliers worldwide.3.9 personify structureThe cost structure describes all expenses which result by the action of a commercial model.29 This is the definition within the Canvas model. In general a cost structure is a method to determine how such(prenominal) it will cost a company to manufacture a product and how much p rofit will be recognized from manufacturing the product.30TOTAL has a mix of cost-driven and value-driven business model. Covered to the limited reserves of the fossil rough materials TOTAL invests millions of Euros into Research and Development. It is for developing unique and innovative products for helping to subjugate energy consumption but also to find new resources of rude(a) material like oil and gas or coal. Secondly a great part of the R&D portfolio goes to the sector of renewable energy like solar and photovoltaic. The biggest part of the Total expenses falls to the production of the several economic goods.4 ConclusionThe TOTALs business model is very effective. According to the several different economic goods TOTAL is producing, the customers are focused by creating value added processes that are fulfilling their basically needs along with a comprehensive growth of revenue. With production plants and service 28 Osterwalder/Pigneur (2011) p.4229 Osterwalder/Pigneur (20 11) p.4430 http//businessdictionary.com/definition/cost-structure.html 11 stations in 150 countries, a sales of or so 184,693 billion, purchasing goods & services of 27 billion from about 50,000 active suppliers worldwide TOTAL is the fifth biggest oil and gas production company of the world. In order to the growing markets in Asia, especially the Chinese market, TOTAL could be able to increase their sales because of the increasing energy consumption in this area. It is not easy to imagine, that they are able to enter new markets, because they are operating worldwide and satisfy the energy needs of the private and business customers all over the world. Taking into account of the move reserves of fossil fuels it becomes inevitably furthermore to engage very intensively in sector of the renewable energy.