Chinese Petrochemical Lubricant Cross-border Business Model Analysis

Since 1992, China has opened the lubricants market to the world. Those multinational companies majored in petroleum and petrochemical industry, such as ExxonMobil, Shell, BPCastrol, ChevronTexaco (Caltex), TotalFinaElf and FUCHS, all increased their investments in China, and the Chinese lubricants market has been inevitably impacted by the development of the world lubricants industry.While SINOPEC develops its lubricants market and competes with foreign brands domestically, it should hold and use the opportunity of economic globalization and the fast development of the world economy to expand its overseas market, set up its production, sales and service network globally, take part in the world competition, create the international brand and realize its development strategies with its high quality and diversified products and excellent services.First, this article reviews the international oil companies'multinational operations theories. Second, it combines the environment of the world lubricants market with the special circumstances of SINOPEC's Lubricants business, uses the successful stories of the well-known multinational lubricants companies as the references to analyse the reasons that SINOPEC should operate its lubricants business globally and the methods to choose the location and enter the overseas market. The author put forward some suggestions, and provides some references for SINOPEC's lubricants business Going-Global.