Answer to Question #198227 in Marketing for hilma

Question

Clearly indicate the challenges that an oil company may face in terms of balance profits, consumers want and society interest

Answer 1

The challenges that oil firms face include prices risks and demand and supply risks. Based on the former risk, the companies may face higher production costs, where they are required to incur intensively in geological costs to extract the product. The increased expenditures at the early stages of the production process incline the oil companies to increase their price. However, the increased prices scares away buyers making the firms to endure some loses as they sell the products to a lower cost.