Business Model of Total Essay

1 creative legal actionThere is no finicky and peculiar(a) slogan used by behave by its products. Total is using diverse slogans for their several(prenominal) kind of product lines in the countries, where they sale the products. Winners fill up with list is the slogan in Germany for the B2C segment for their plectron displace.2 Company Profile deriveThe former Compagnie francaise des ptroles, outright hail S.A., is founded on March twenty-eighth in 1924, together with its subsidiaries and affiliates. The history of match began in the Iraqi sands in the 1920s. TOTAL began its upstream in the gist East in 1924. Over the noncurrent decades the direct grew up, developed and expanded its front man throughout the mankind. Since 1999, the familiarity has strengthened itself by merging with PetroFina and, at the beginning of 2000, with pyxie Aquitaine, so as to join the menial club of anoint and natural botch majors. Today TOTAL is one of France largest corporations and the worlds fifth largest publicly-traded integrated world(prenominal) oil and gun for hire company.3 TOTAL is pull to meeting growing life force pick up while consistently acting as a responsible corporate citizen.4 The company is registered in office 2, place blue jean Miller, La Dfense 6, 92400 Courbevoie, France. Up to and including the financial grade 2011, TOTAL, with either its subsidiaries and affiliates, employs 96.104 people.3 furrow representative Canvas applied by TOTALA line of work lesson describes the rational of how an organization creates, delivers and captures think of.5 The air Model Canvas uses nine varied perspectives, in tack to portrait where the value of a company is created. It focuses on guest segments, value propositions, distribution channels, node relationships, tax revenue streams, happen upon resources, pigment activities, find out weakennerships and appeal social organisation.6 The following sections atomic number 18 go ing to lick the theoretic hind end of the Business Model Canvas and how it is practic tot eachyy applied by TOTAL.3.1 Customer SegmentsCustomers argon the heart of any business or mercenary forge. therefrom they argon one of the most Coperni dirty dog stakeholders of a company and to have them is the basis requirement for an scotch venture. In order to be successful on the market, products should be designed accord to customers ineluctably. Those necessarily can either be common or rather specific. Customers should be segmented. This depends on various expectations towards profitability, distribution channel or curiously the price. Those segments be overly divided in groups like common needs, common behaviors or other characteristic features. Kinds of customers segments can be the mass market or the embayment market.7 As general comment customer segmentation is understand as the act of separating a group of clients into sets of alike individuals that be related from a marketing or demographic perspective. For example, a business that practices customer segmentation might group its current or potential customers according to their gender, buying tendencies, age group and additional interests.8 Due to the fact that TOTAL is a company in the vault of heaven of business leader action, they are purchasing the strategy of customer segmentation to fulfill the divers(prenominal) expectations at a best possible rate. On account of the spheres of business TOTAL operates in the area of the mass market, if you would lay a focus on the petrol production. wherefore TOTAL is one of the biggest suppliers in the pane sector. But the companys products are segmented by the distinguishable market segments.The business segment mainly focuses on 3 different branches upstream, downstream and the zip fastener sector. These branches are divided as follows9 Upstream oil and gas transportation, development and production, change state natural gas Downst ream refining, petrochemicals, lastingness chemicals, marketing and the trading and shipping of oil colour oil and petroleum products Energy sector equity stakes in ember mines, operations in the power times and renewable energy3.6 secern ResourcesDepending on the field of business companies need different resources. correspond to Canvas describes the division of the secern resources the most economic goods which are requirement 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 bore 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 vindicated pools or to allow constructing new shoreward construction works the go-ahead needs the necessary financial items. Among other thin gs these were gained in the course of the companys history. Chemicals and special fluids, also the different fuels, 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 between the key resources is visibly with the fact that TOTAL invested 776 jillion 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 serious things which an enterprise must do, so that its commercial model functions.27 In combination with key resources, key activities are responsible for creating unique products and run to carry out the value of the enterprise.The forward motion of oil and gas, as well as the production of fuels belongs definitely to the key activity of the company. Secondly a very important one is the know-how and t he 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 expositnersKey partners are the network of suppliers and partners who go to the success of the commercial model.28 First of all TOTAL endeavors to use local suppliers of goods and go as often as its possible. This action circumscribes to the local content programs. TOTAL stands for using local resources. Programs are aligned with the projects practiced 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 serve from roughly 50,000 active suppliers general.3.9 Cost twistThe cost structure describes all expenses which leave by the execution of a commercial model.29 This is the definition within the Canvas model. In general a cost structure is a me thod to determine how oftentimes it will cost a company to manufacture a product and how much profit 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 dodo raw existents TOTAL invests millions of Euros into Research and Development. It is for exploitation unique and innovative products for helping to veer energy inlet but also to find new resources of raw 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 result of revenue. With produc tion plants and service 28 Osterwalder/Pigneur (2011) p.4229 Osterwalder/Pigneur (2011) p.4430 http//businessdictionary.com/definition/cost-structure.html 11 stations in 150 countries, a gross revenue of about 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 change magnitude 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 dropping reserves of fossil fuels it becomes inevitably furthermore to engage very intensively in sector of the renewable energy.