Benefits of partnership Combining resources and capabilities of different companies --Learning from one another --Reducing time-to-market for

innovations --Risk sharing

European directives on compition limit its downstream to 50% and transport (2001,snam rete gas) and storage(2008, stogit) to seperate companies. The physicals difficulties of transportation and storing gas meant different companies and lack of integrated global market in gas. Eni was unsual when compare with compitiors it concentrated on natural gas than oil. Pursuit of global strategy from home base Strategy, technology development, and

manufacture concentrated at home National subsidiaries primarily sales and distribution companies with limited autonomy. e.g. Toyota, NEC, Matsushita pipelines played a major role to transport for eni. Scaroni Took risk of investing on chemicals

which was loss maker for eni by joint ventures,acqustions,licensing and alliances. porters compitive advantage of nation. Extends and adapts traditional theory of comparative advantage to take account of three factors: the role of the national environment is providing a home base for the company. dynamic factors-- innovation and the upgrading of resources and capabilities impact upon the dynamics of innovation and upgrading. problem: difference in opinion.
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***************** Paolo scaroni (may 2012)-10th most valuble in Europe.

Upstream means oil search, drilling and operating crude oil. Down stream: refining, processing of crude oil; Marketing and distributing consumers.(vertical integrated approach) touching

Bernable era:::Dynamic management through acquisitions,joint ventures and divesments.

/////////////////////////////// MINCATO(1998-2005) 2005 he retired, he extended upstreamin different nations like Kazakhstan, iran, gulf of mexico. Other oil majors were engaged in mega mergers,eni limited itself to medium sized acqustions. Major pipeline projects included the blue stream pipeline. which include blue stream pipeline and green steam pipeline .

Eni acquired Spains union fenosa business and extending its aqucations. Eni also entered gas market in germany Within Italy ENI began investing in power generation.ENI s chemical business was consolidated into a separate company,polimeri europa.

////////////////////////////////////////////////////// Barganning power as thecountry who have the oil reserves which was also stated by scaronis the fact is the oil is theirs . If you are looked at as a partner, you are allowed to exploit their oil; if not you are pushed aside. Key success factors in mature industry: Oppurtunites for success Sources for economies of scale and cost advantage Segment and customer Sources of differentiation

 Sources of innovation Incentives. Eni used the strategies of the declineing industry to its advantage by acquisions. 1995 2007 Rapid increase in global concentration (steel, aluminium, oil, beer, banking, cement). Week7

For petroliem majors all the upstream were the primary source of profit for the energy industry.Saudi Arabia acts as a swing producer adjusting its output to stabilize world prices. Italy accounted for almost one third ENI total revenue. Def: Vertical integration is the merging together of two businesses that are at different stages of productionfor example, a food manufacturer and a chain of supermarkets. Merging in this way with something further on in the production process (and

thus closer to the final consumer) is known as forward integration. foreign direct investment and international trade is high for the oil industry. Lower entry barriers into national markets Increased industry concentration rivalry --lower seller

--- greater diversity of competitors Increased buyer power---wider choice of suppliers for distributors & consumers Industry enviornment key success factors important to attain competitive advantage is

National Influences on Competitiveness: The Theory of Comparative Advantage A country has a relative efficiency advantage in those products

that make intensive use of resources that are abundant within that country. E.g. Philippines relatively more efficient in the production of footwear, apparel, products than in and assembled electronic

the production of chemicals and automobiles. U.S. is relatively more efficient in the production of semiconductors and pharmaceuticals than shoes or shirts.

/////////////////////////////////////// /////////////////////////////////////////// Transactional (week 8) every one has power. ////////////////////////////////

////////first ceo///// He wanted ENI to become an integrated international oil and gas company postwar regeneration.hew was a new man who made it himself without the old boy network. mattei signed with the shah of Iran established eni as the as enfant terrible of the oil business. his plans were implemented by Libya, Egypt, Tovenment created joint with Tunisia and Algeria. Iranin government (Iraian national oil company)and eni .

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Potter six force models:

Potential entrants

suppliers

Industry competitors Reviver among existing firms

substitutes complements

buyers

Suppliers-countries in Europe and Africa are the suppliers of oil and gas Potential entrants-Manufacture, drilling and selling in oil business is hard process so it had few potential entrants Buyers- European countries. Substitutes- other resources should be used instead of oil or provide the energy of the resource. Complements- ENI suppliers have the governments that are involved in the supply as the gas is natural found in different places around the planet. Second strategy Cooperate strategy : Business strategy is concerned with how a firm computes. while business strategy is concerned with where the firm competes. The scope are

geographical scope- Most of the ENI oil reserves are outside the Italy . Vertical scope-one method of avoiding hold up problems. Product scope- Not every where we get to drill and refine oil/gas.

Recommendations: 1)In my analysis I found that top management was only of Italy people but begins a global company it should have the at least one person to represent the country in which they are doing business. 2) Transactional corporation helps in heavy flow of technology. people and different discussion of strategy. Each national unit and source of ideas, skills and capabilities that can be made to benefit whole corporation.