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Phillips 66 Business Model Canvas

Philips 66 Business Model Canvas
Photo by Robin Sommer, Edited by Grey Knight

A Brief History of Phillips 66

Phillips 66 was founded in 1917 as the Phillips Petroleum Company by L.E. Phillips and Frank Phillips in Bartlesville, Oklahoma. The company initially focused on oil drilling, refining, and marketing.

In the 1920s and 1930s, Phillips Petroleum Company expanded its operations across the United States, opening refineries and gasoline stations. During World War II, the company played a significant role in the war effort by producing high-octane aviation fuel.

In the following decades, Phillips Petroleum Company continued to grow and innovate, developing new technologies and expanding its presence in the global oil and gas industry. In 2002, the company merged with Conoco to form ConocoPhillips, one of the largest energy companies in the world at the time.

In 2012, ConocoPhillips split into two separate companies: ConocoPhillips, focused on exploration and production, and Phillips 66, focused on refining, marketing, and chemical production. Phillips 66 has since become a leading energy manufacturing and logistics company, with a strong presence in the United States and around the world.

Today, Phillips 66 continues to be a major player in the energy industry, with a focus on sustainability, innovation, and growth.

Who Owns Phillips 66?

Phillips 66 is owned by a diverse group of shareholders, including institutional investors, mutual funds, and individual investors. The top 10 shareholders of Phillips 66 are BlackRock Inc., The Vanguard Group Inc., State Street Corp, FMR LLC, Capital World Investors, Geode Capital Management, Wellington Management Company LLP, T. Rowe Price Associates, Inc., Northern Trust Corporation, and Capital Research & Management Co. These shareholders hold significant stakes in the company and play a key role in its corporate governance and decision-making processes. Phillips 66 is a publicly traded company, meaning that its ownership is spread out among a large number of investors who buy and sell its stock on the open market.

Phillips 66 Mission Statement

Phillips 66’s mission is to provide energy and improve lives through their strong focus on safety, reliability, innovation, and sustainability. They are committed to delivering high-quality products and services that meet the needs of their customers and the communities in which they operate. Phillips 66 is dedicated to being a responsible corporate citizen and driving positive environmental and social impacts through their business operations.

How does Phillips 66 make Money?

Phillips 66 operates as an integrated energy company, with a business model focused on refining, marketing, and transportation of petroleum products. The company makes money through various revenue streams, including refining and marketing of fuels, natural gas liquids, and petrochemicals, as well as through its midstream and chemical segments. Phillips 66 also generates revenue from its marketing and specialty products, lubricants, and licensing agreements. Additionally, the company has investments in joint ventures and equity affiliates, which contribute to its overall revenue stream. Overall, Phillips 66’s business model is centered around the efficient production and distribution of a wide range of energy products, driving its revenue and profitability.

Phillips 66 Business Model Canvas

The business model canvas is a strategic management tool used to visually map out a company’s business model. It consists of nine key components that help organizations understand, analyze, and develop their business models, including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure. In this business model canvas, we will explore the specific components of Phillips 66, a leading energy manufacturing and logistics company.

Customer Segments:

– Refining segment
– Midstream segment
– Chemicals segment
– Marketing and Specialties segment
– Diverse customer base including wholesalers, retailers, manufacturers, and other end-users

Value Propositions:

– High quality products and services
– Commitment to safety and environmental stewardship
– Innovation and technology advancement
– Global reach and reliable energy solutions


– Physical distribution channels including terminals, pipelines, and marine vessels
– Online and digital platforms for customer engagement
– Wholesale and retail distribution networks

Customer Relationships:

– Strategic partnerships and alliances
– Customer service and support
– Market intelligence and customer feedback

Revenue Streams:

– Sales of refined petroleum products
– Transportation and storage services
– Petrochemical and specialty chemical sales
– Licensing and technology agreements

Key Resources:

– Refineries and manufacturing facilities
– Pipelines, terminals, and storage assets
– Industry expertise and intellectual property
– Human capital and skilled workforce

Key Activities:

– Refining and processing of crude oil and natural gas
– Transportation and logistics operations
– Research and development
– Marketing, sales, and customer support

Key Partners:

– Suppliers of raw materials
– Distribution and logistics partners
– Research and technology partners
– Regulatory and industry associations

Cost Structure:

– Raw material procurement
– Production and operational costs
– R&D and technology investment
– Marketing and sales expenses

Phillips 66’s Competitors

Phillips 66 faces tough competition in the energy industry from companies like Exxon Mobil, Chevron, Shell, Valero Energy, and Marathon Petroleum. These competitors are major players in the oil and gas sector, and they continuously strive to expand their market share and maintain a strong presence in the global energy market. As a result, Phillips 66 must continually innovate and adapt to market trends to stay ahead of the competition and remain a leading force in the industry.

Phillips 66 SWOT Analysis


1. Strong brand recognition and reputation.
2. Diversified operations in refining, marketing, and midstream businesses.
3. Strong financial performance.
4. Extensive network of refineries and marketing outlets.


1. Susceptibility to fluctuations in oil prices.
2. High operating costs in a competitive market.
3. Limited international presence compared to competitors.


1. Expansion into renewable energy and alternative fuels.
2. Strategic partnerships and acquisitions to increase market share.
3. Growing demand for petrochemical products.


1. Increasing regulatory pressures and environmental concerns.
2. Volatility in commodity markets.
3. Intense competition from global and domestic competitors.

Concluding Analysis

In analyzing the business model of Phillips 66, it is clear that the company has embraced diversification and innovation to drive growth and increase shareholder value. The company’s focus on sustainability and commitment to meeting the needs of the changing energy landscape demonstrates a forward-thinking approach that will likely lead to continued success in the future. As an analyst, I am optimistic about the potential for Phillips 66 to thrive in the evolving energy sector, particularly as they continue to invest in future-focused initiatives and adapt to the changing market dynamics. Overall, I believe that Phillips 66 is well-positioned for long-term success and I look forward to seeing the company’s continued growth and innovation in the years to come.

Additional Resources

To keep learning and advancing your career, we highly recommend these additional resources:

Business Model Canvas of The Top 1,000 Largest Companies by Market Cap in 2024

A List of 1000 Venture Capital Firms & Investors with LinkedIn Profiles

Peter Thiel and the 16 Unicorns: The Legacy of Thiel Fellowship

9 Biggest IPOs of All Time

List of Fortune 500 Companies in 2023

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