November 25th, 2019
“Leadership is the capacity to translate vision into reality.”
Warren G. Bennis
Shell has impressively managed to remain a leader in the lubricant industry, as a top supplier of industrial and automotive lubricants, for over a decade now. The Shell Group has been able to keep their hold on the pulse of the market through their strong growth strategies, ability to tap into different opportunities and lead the market.
This has kept Shell the number 1 global lubricant supplier for thirteen years in a row and the largest North American lubricants supplier in 2018.
The Global Finished Lubricants Market Study gave a methodical and detailed analysis of the current market situation with regard to its size, demand, share, potential growth and forecast in the years to come. Shell outperformed BP and ExxonMobil, which have a 7% and 11% of global market share, respectively. After which, Chevron, Total, and Petro-China follow (Kline & Company, 2019).
Huibert Vigeveno, Executive Vice President at Shell Global Commercial, stated that it is their balanced portfolio of market-leading products along with their growing digital services, that have been enabling Shell to build a business across various market segments. This is what has led Shell to demonstrate the resiliency of their business as a global and dynamic market for lubricants.
Shell has been focusing on the needs of customers and ensuring that the businesses adapt themselves accordingly to what the consumers want. This has resulted in material earnings growth and has also contributed significantly to the resilient free cash flow to the Shell Group, keeping Shell the number 1 global lubricants supplier.
“Creativity is thinking up new things. Innovation is doing new things.”
The Shell Group has taken the lubricant industry forward by advanced innovation in the field. John Abbott, the Shell Downstream Director, had stated that the success of the group is due to such a customer-focused approach, coupled with continuous product and service innovation.
The technological leadership and brand investment has allowed for close customer and industry collaborations, which Shell will continue to do in the future. Shell has consistently invested in growing and updating their world-class supply chain, to meet with the dynamic global demand patterns.
In 2018, Shell had a growth in its leading global market share, while other IOC competitors saw declines. Shell’s sold a total volume of approximately four thousand five hundred kilotons of finished lubricants, the sales of which were split between the industrial segment (36%), commercial automotive segment (34%), and consumer automotive (30%) (Kline & Company, 2019).
Shell, a global lubricants supplier, has a rich and vibrant history of innovation in lubricants and was the first lubricant company in the industry to market lubricants which were cleaner and purer and made from natural gas.
Shell understands that in the modern world, with increasingly new customer demands, as the needs evolve, innovation is necessary. The Shell Group launched Shell E-Fluids, which were specifically designed for the growing electric vehicle market, and even introduced a new digital service for optimisation of operation of machinery.
Shell Lubricants as the number 1 global lubricants supplier have documented over a hundred million dollars in cost savings by using value-added Shell technical services. These services for a select few industrial customers assist customers in choosing, using, maintaining, and monitoring lubricant applications in their equipment.
Shell is technologically up to date with its very own artificial intelligence-powered Virtual Assistant to answer lubricant related questions, and it can only get more exciting from here.
Kline & Company. (2019). Why Shell Remains a Market Leader in 2019 and How Lubricant Suppliers Can Capitalize on the Shifting Mobility Ecosystem – Kline & Company. [online] Available at: https://klinegroup.com/news/why-shell-remains-a-market-leader-in-2019-and-how-lubricant-suppliers-can-capitalize-on-the-shifting-mobility-ecosystem/ [Accessed 22 Nov. 2019].
Shell.com. (2019). Shell retains leadership of global lubricants market for 13th consecutive year. [online] Available at: https://www.shell.com/business-customers/lubricants-for-business/news-and-media-releases/2019/shell-retains-leadership-of-global-lubricants-market-for-thirteen-consecutive-year.html [Accessed 22 Nov. 2019].