Petromin Case Study Essay

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Professor Kim Smith

EST 325

7h July 2017

Introduction to Saudi Arabia’s leading oil corporation – Petromin

Case Study

History and Growth:

Keeping an oil-dependent economy like that of Saudi Arabia in mind, it’s not astounding to know there are numerous lubrication service companies prevailing in the kingdom. As with any field of service, there is always a dominant one leading that particular sector. In this case, this is where Petromin Corporation stands, with its 40% market share. Saudi Arabia’s leading lubricants and automative services company, Petromin, has four lines of business existing currently; these comprising oil lubricants, car servicing (Petromin Express), fuel retaining, and car dealerships (“petromin” 2016). “Petromins

This was a change that seemingly marked its move towards the bright and dynamic position it upholds today- where its prominence and brand equity is high. It was during 2007, that the company realized there was a big gap in the market in terms of providing a quick oil change service. Service standards were poor and the franchised workshops were inefficient and commanded a high premium. This need had to be dealt with and it could be said that Petromin took this in their hands. The company opened it’s first station named “Petromin Express” (to be noted, this is similar to the Jiffy Lubs concept in the U.S) and thereafter focused on providing quick and cost effective oil change services. Within the next 9 years, Petromin opened up 700 oil change outlets across the Kingdom, serving around 3.5 Million customers a year, along with a loyalty of around 75%. It finally came to be known as what it is today around 2007 and has since seen nothing but ever increasing success. Known by this name now, it started of as ‘Petromin Lubricating Oil Company’, a joint venture at the time followed by a name change of ‘Saudi Arabian Lubricating Oil

This is: “Excellence and continuous improvement is Petromin’s motto. As we strive to exceed expectations — our own and those of others – we aim to undertake new professional challenges and ventures, with a sustainable accountability as a framework. Thus, business-oriented and thinking out of the box are our special characteristics” (“Petromin” 2016). Additonally, the vision is to “Be the leading company of choice in the Middle East and Africa region providing quality petroleum products and automotive services” and the mission is to “produce and market quality petroleum products and automotive services by empowering our people to exceed the expectations of our customers, partners, shareholders and the community at large” (“Petromin”