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6,288 $m

Shell issued a rare profit warning earlier this year after declining oil prices, rising exploration costs, and a massive oil theft problem in Nigeria impacted its bottom line. Seeking to improve profitability, Shell appointed Ben van Beurden CEO in January 2014. and is responding to market developments by using scenario planning and focusing on economic trends, politics, and energy through 2100. Consumers who traditionally used premium brands steeped in innovation and sustainability are increasingly shifting to alternative energy brands. Renewable energy had a record year in 2013 and the demand for eco-friendly energy shows no signs of slowing. In response to this trend, Shell plans to design and develop an energy system that drives economic progress through sustainability-it already plays a key role in growing natural gas and is investing in biofuels. However, the brand continues to face challenges in this area. It will, for example, have to suspend Alaskan exploration in January 2014 due to court rulings on U.S. government environmental analysis. The clear positioning of this industry leader continues to be reflected in brand communication and consumer relationships. The annual Motorsport event emphasizes Shell's performance, while the Eco-marathon elevates its sustainable image. In addition, Shell's collaboration with Ferrari and LEGO is a successful move-one that will help the brand connect with consumers and their children. Shell is unique in its focus beyond energy. It has a clear understanding that the future of its business and brand lies in successful global management of what it calls the "stress nexus" of energy, water, and food-set against the backdrop of climate change. Treating energy as an essential component of a wider system allows Shell to be more responsive and significantly more relevant in a rapidly changing world.

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