Large and very large lubricant marketers enjoy many competitive advantages tied to scale – favored relationships with the majors, geographic reach, ability to attract talent and acquire technology, access to capital, and more – yet they also have some significant challenges. And some of these challenges are directly related to their size and accelerated growth.
The first and often most difficult set of hurdles arises when a marketer transitions from being a mid-size outfit to one that is large-size and upward. This progression often includes mergers or acquisitions along the way that must be integrated. And any marketer who has been through the process will attest that integration can be very complicated and even painful.