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Overview of Lubrizol Additives Research Paper

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Updated: Apr 27th, 2022

Discussion of company and industry

Lubrizol additive is a transnational corporation, which the founders positioned well geographically to meet the needs of its customer. It has headquarters in Ohio and specialises in lubricants production for the automotive industry and oil companies. Globally, Lubrizol has branches in automobile producing nations, as they are one of the chief consumers of its products; therefore, it has been able to keep at par with customer requirements. The corporation operates in an industry, which is highly regulated globally. In effects, it means the company has to invest substantial amount in research. Moreover, the clientele requires specially tailored products that have to meet certain standards. The main risk in this industry is the precariousness of the raw material market. Crude oil trade is very vulnerable to global politics, terrorism and speculation of price. These factors drive up cost of raw material thus reducing the entities’ profitability ratios.

Market position

Not to mention, Lubrizol is a leading force in a highly competitive market, and several multinational dominate it. With majority of its income arising from sales to the automobile industry, the corporation’s geographical positioning has only played to its advantage. It has positioned market representatives who work closely with customers and set up laboratories that replicate the customer operation, enabling it make effectual products that suit its customers’ ever-changing needs. The oil sector is exceedingly regulated due to environmental concerns hence players of this industry have to be innovative in product creation. Lubrizol research department has done well in meeting these regulations. With clients in over 100 countries and no single customer, contributing for surplus of 10% of its revenues implies that the company’s market base is very diverse and no single client can reasonably sabotage its operations. The corporation has well differentiated product variety that has enabled it compete appropriately with its rivals.

Historical performance

It is imperative to note that Lubrizol commenced operations in Cleveland, Ohio in the late 1920s, and has emerged as a dominant player in the global lubricants market. Its rapid growth is attributable to research, innovation, dedicated staff members and sticking to the values of its founders. From its onset, the management had their objectives well figured out. In spite of the harsh economic times in the mid 1930s, Lubrizol began establishing plants in other countries. This was a clear indication that the company was experiencing a boom as it had enough resources to fund a fundamental strategic decision. Lubrizol’s management was definitely competent, as it had made gigantic strides in the right direction. In recent times, Lubrizol has asserted itself not only as a dominant force in the lubricant production but also as a believer and a leader in innovation. It serves a significant market share, which is a clear indication of its success.


Chief consumer of Lubrizol products the automobile sector, an industry whose demands keeps on shifting due to market standards and environmental concerns. Therefore, Lubrizol has to persistently, invest significant amount of resources into research. With an ever growing middle class that demands fuel-efficient vehicles, the automobile industry will grow and consequently that of lubricants. Stability of the oil industry will be an imperative determinant of this corporation’s future. Instability in the oil market will lead to disruption of raw materials that will be later purchased at inflated prices hence lowering profit margins and output level. During such time, oil-producing firms will have cut back on their production thus utilising less lubricants. Overall stability in the oil industry will be pivotal, as it does not only serve as a customer but also as a font of raw materials. The differentiated product portfolio means that it is cushioned against loss in demand of one product.

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"Overview of Lubrizol Additives." IvyPanda, 27 Apr. 2022, ivypanda.com/essays/overview-of-lubrizol-additives/.

1. IvyPanda. "Overview of Lubrizol Additives." April 27, 2022. https://ivypanda.com/essays/overview-of-lubrizol-additives/.


IvyPanda. "Overview of Lubrizol Additives." April 27, 2022. https://ivypanda.com/essays/overview-of-lubrizol-additives/.


IvyPanda. 2022. "Overview of Lubrizol Additives." April 27, 2022. https://ivypanda.com/essays/overview-of-lubrizol-additives/.


IvyPanda. (2022) 'Overview of Lubrizol Additives'. 27 April.

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