International Business Strategy of Royal Dutch Shell. This is a report on Shell international strategy using their entry in the Nigerian Oil industry, as a benchmark for their international activities.

Segmentation Evaluation

Based on the market segmentation, Nigeria was favourable for them to explore Oil as proven through their increased profits.

Ansoff Matrix

As oil was already an existing product, but was new to the Nigerian Industry which was mainly Agriculture export at the time, Shell entered the market through Market Development. Implementing different pricing policies and distribution channels, whilst exploring in the Country, has been beneficial, as after entry they formed Alliances with the Government and other oil company, which have yielded high returns.

PESTEL OF Shell in Nigeria

Political Analysis

Conclusion

The political analysis reflected the positive approach toward foreign business in the interest, of the government, which Shell capitalised on through strategic relationships.

Economical Analysis

Conclusion

The Economical benefits from operating in these region arte reflected in the increasing profits,.

Social Analysis

Conclusion

Although, there have been criticism of Shell approach to social responsibility, the company still benefited from the increase in oil prices, however the backlashes negatively affected the country’s brand image, hence the annual report of their positive approach.

Technology

Conclusion

Shell benefited from the advanced technological capabilities and increased the volumes of oil and gas produced, as well as production in environmental friendly products.

Environmental Analysis

Conclusion

Environmental pollution as a result of Shell operations reflected poorly on the company, however they had what some perceive as ethical epiphany, as they released sustainability reports, reflecting changes to majority of their previous approaches and operations.

Legal Analysis

Conclusion

Despite the civil law cases brought against the company, Shell has endeavour to abide by the laws and policies, hence positively build their brand image in the international market

Core Competences

In reporting Shell capabilities which are critical to their success in the Nigeria Oil industry, the ideas of Hamel & Prahalad (1990)

Conclusion

The core competences central to Royal Dutch Shell’s operations, have resulted in the companies competitive advantage over rivals in the market.

Entry Mode

Royal Dutch Shell entered the Nigeria Oil market through forming alliance and establishing strategic relationship with the country’s government and other oil companies. Whilst standardising the prices of export barrels of oil, in the global market, which aided economies of scale, resulting in increased returns, as observed in their annual/quarterly financial reports.

Evaluation

Royal Dutch Shell international business strategy has been a proven success as shown in their growth and reflected on their balance sheets, in generate extravagant rewards for the company’s share holders, whilst having an a positive approach to social responsibilities.

Bibliography

Website

1. Shell. 2010: Shell Nigeria [Online] (Updated 2010)Available at:  [Accessed 19 August 2010]
2. BBC. 2009: Shell settles Nigeria deaths Case [Online] (Updated 2009) Available at:  [Accessed 19 August 2010]
3. SUITE101. 2010: Corporate Social Responsibility at The Body Shop [Online](Updated Mar 20,2010) Available:

4. Guardian. 2009: ’14 years after Ken Saro-Wiwa’s death, family points finger at Shell in court [Online](Updated May 27 2009) Available at:

5. thisismoney. 2009: Shell to face court over African Oil Spill Calims [Online] (Updated Deember 31 2009) Available at:

 last at August 19 2010)