It’s no secret that Exxon has been a major player in the fuel industry for decades. Recently, however, there has been a lot of buzz surrounding their decision to change from Speedway, one of their most well-known brands. Many have been left wondering why this change was made, and what it means for the future of Exxon and their customers.
The decision to change from Speedway was not made lightly, and there were a number of factors that contributed to it. While some customers were initially concerned about what this change would mean for them, there are actually a number of benefits that come with this change, both for customers and for Exxon.
In this article, we will delve into the reasons behind Exxon’s decision to change from Speedway, the impact it has had on customers and employees, and what the future holds for Exxon and Speedway. So buckle up and get ready to discover the truth about this mystery!
Ready to uncover the secrets behind Exxon’s change from Speedway? Keep reading to learn more about this decision, and what it means for you as a customer.
What is Speedway?
Speedway is a chain of gas stations and convenience stores that was originally founded in 1959. With over 4,000 locations across the United States, Speedway is one of the largest and most recognizable brands in the fuel industry. Speedway is known for offering customers a wide range of services, including fueling up their vehicles, grabbing a quick snack, or even filling up their propane tanks.
History of Speedway
The first Speedway location was opened in 1959 in Michigan under the name “Speedy.” Over time, the company expanded and rebranded to Speedway in the 1990s. In 2018, Speedway was acquired by Marathon Petroleum Corporation, which led to the eventual split from Exxon.
Services Offered at Speedway
- Gasoline: Speedway offers customers a range of gasoline options, including regular, mid-grade, and premium fuel. They also offer diesel at select locations.
- Convenience Store: Most Speedway locations have a convenience store attached, which offers a variety of snacks, drinks, and other items for customers to purchase.
- Speedy Rewards: Speedway’s loyalty program, Speedy Rewards, allows customers to earn points on their purchases that can be redeemed for discounts or free items.
Exxon’s Decision to Change from Speedway
Exxon’s decision to change from Speedway was not made lightly. While Speedway had been a part of the Exxon family for many years, changes in the industry and the acquisition by Marathon Petroleum Corporation led to a reevaluation of the partnership. Ultimately, Exxon made the decision to focus on their core business and split from Speedway in 2021.
The Reasons Behind the Change
So why did Exxon change the name of Speedway? There are several reasons behind the rebranding.
Firstly, the change was a strategic move to focus on Exxon’s core business of oil and gas. As Exxon continues to face challenges in the industry, the company has been making efforts to streamline its operations and reduce costs. The sale of Speedway to 7-Eleven is part of this strategy.
Branding
The second reason for the rebranding was to consolidate Exxon’s branding efforts. By rebranding Speedway, Exxon has been able to align its convenience stores with the Exxon Mobil brand, creating a more unified image for the company. This move is in line with Exxon’s overall branding strategy of presenting a clear and consistent message to customers.
Competitive Landscape
Another reason for the change is the highly competitive convenience store industry. Exxon faced stiff competition from major players like 7-Eleven, Circle K, and Wawa, which made it difficult for Speedway to gain market share. By selling Speedway to 7-Eleven, Exxon has been able to reduce its presence in a highly competitive market while still maintaining a strong presence in the oil and gas industry.
Financial Benefits
Finally, the sale of Speedway to 7-Eleven provided financial benefits to Exxon. The deal was valued at $21 billion and will allow Exxon to focus on its core business of oil and gas, while also providing a significant cash infusion. The sale also aligns with Exxon’s broader efforts to divest non-core assets and focus on higher-margin businesses.
In conclusion, the rebranding of Speedway to 7-Eleven was a strategic move by Exxon to focus on its core business of oil and gas, consolidate its branding efforts, reduce its presence in a highly competitive market, and provide a significant cash infusion.
The Impact on Customers
The recent changes made by Speedway have a direct impact on its customers. Many have noticed differences in the store layout, product selection, and overall customer experience.
One major impact has been the change in product selection. While some customers appreciate the new selection, others are disappointed that their favorite products are no longer available. This has caused frustration and inconvenience for those who relied on Speedway for their preferred snacks and beverages.
Longer Wait Times
Another impact has been longer wait times. With the new layout and selection, customers are taking longer to navigate the store and make their selections. This has resulted in longer lines and increased wait times at checkout, leading to frustration for some customers who are in a hurry.
Rewards Program Changes
Speedway’s changes have also affected its rewards program. Some customers have reported difficulty redeeming points or receiving rewards, while others have noticed changes in the value of rewards offered. This has caused confusion and frustration for customers who have come to rely on the rewards program for discounts and perks.
Improved Customer Service
Despite these challenges, some customers have noticed an improvement in customer service. The changes have allowed for more staff to be available to assist customers and answer questions. This has resulted in a better overall customer experience for those who may have had concerns or issues in the past.
The Impact on Employees
Any significant change within a company can have a profound effect on its employees. This change is no exception. The uncertainty that comes with such a major decision can leave employees feeling anxious about their job security and future within the company. The communication of the change and how it affects them is vital to alleviate these concerns and maintain morale.
With that in mind, let’s look at the impact this change could have on employees from three different perspectives:
Job Security
- Some employees may be concerned about the stability of their role within the company.
- It’s important for management to provide clear communication about the future of the company and how the change will impact employees’ positions.
- Offering job security in the form of contracts or guarantees can help alleviate these concerns.
Skill Development
- With a new direction for the company, employees may need to develop new skills or adapt to different ways of working.
- Investing in employee training and development can help prepare them for the change and demonstrate the company’s commitment to their growth.
- Management should provide clear expectations and goals to encourage employees to take ownership of their development and embrace the change.
Company Culture
- Any significant change can impact the culture of a company and how employees perceive it.
- Management should actively work to maintain the company’s values and culture throughout the transition, which can help employees feel a sense of continuity and stability during a period of change.
- Encouraging open communication and feedback from employees can also help maintain a positive and inclusive company culture.
The Controversy Surrounding the Change
The decision to change the company’s policy was met with mixed reactions from the public. Some customers were thrilled with the change, stating that it showed the company’s commitment to inclusivity and diversity. However, others were outraged, with some even threatening to boycott the company altogether.
The controversy surrounding the change mainly stemmed from the fact that the company had not consulted with its employees or customers before making the decision. This lack of transparency led many to feel that the change was forced upon them without their input or consideration.
Lack of Communication
One of the main issues that sparked controversy was the lack of communication from the company. Many customers and employees felt that they were blindsided by the change and had no idea that it was coming. This lack of transparency led to confusion and frustration among those affected.
Perceived Political Agenda
Another issue that fueled the controversy was the perceived political agenda behind the change. Some customers and employees felt that the company was catering to a specific political ideology rather than making a decision based on what was best for the business and its stakeholders.
Impact on Brand Image
The controversy surrounding the change had a significant impact on the company’s brand image. Some customers felt alienated and chose to take their business elsewhere, while others saw the change as a positive step forward for the company. The media coverage surrounding the controversy also attracted negative attention to the company, which may have damaged its reputation in the long run.
What Are the Alternatives?
When faced with controversial changes in the workplace, it’s important to consider alternative solutions. One alternative is to seek feedback from employees before implementing any major changes. By gathering input from the workforce, management can make more informed decisions that take into account the needs and concerns of the employees. Another alternative is to offer training and support to help employees adapt to new systems or procedures. This can alleviate some of the stress and anxiety associated with change and help employees feel more comfortable with the new way of doing things.
If the change is particularly disruptive, another option is to consider delaying the implementation until a more appropriate time. This allows management to address any concerns or issues that arise, and gives employees time to adjust to the idea of the change. In some cases, it may also be possible to find a compromise that addresses both the needs of the organization and the concerns of the employees.
Seeking Employee Feedback
One alternative to controversial changes in the workplace is to seek feedback from employees before implementing any major changes. This can be done through surveys, focus groups, or one-on-one meetings with management. By gathering input from the workforce, management can make more informed decisions that take into account the needs and concerns of the employees. This approach can also help to build trust and improve communication between management and employees.
Offering Training and Support
Another alternative to controversial changes in the workplace is to offer training and support to help employees adapt to new systems or procedures. This can include training sessions, user guides, and access to technical support. By providing employees with the resources they need to succeed in the new environment, management can alleviate some of the stress and anxiety associated with change and help employees feel more comfortable with the new way of doing things.
Delaying Implementation or Finding a Compromise
If the change is particularly disruptive, another option is to consider delaying the implementation until a more appropriate time. This allows management to address any concerns or issues that arise, and gives employees time to adjust to the idea of the change. In some cases, it may also be possible to find a compromise that addresses both the needs of the organization and the concerns of the employees. This can involve making adjustments to the implementation plan, or finding a middle ground that satisfies both parties.
The Future of Exxon and Speedway
Following the controversial change to the Speedway branding, the future of both Exxon and Speedway is uncertain. Exxon has been struggling with declining sales and a tarnished reputation due to its association with climate change denial, while Speedway had been a bright spot with its strong performance and loyal customer base. Now, with the change in branding, there are questions about how Exxon and Speedway will fare in the future.
Despite the uncertainty, there are several potential paths forward for both companies.
Rebranding
- Exxon could consider rebranding itself to distance from its negative image and emphasize its commitment to sustainability and renewable energy.
- Speedway could revert back to its original branding if the change does not prove successful in attracting a wider customer base.
Diversification
- Both Exxon and Speedway could look into diversifying their product offerings beyond traditional gasoline and convenience store items to appeal to changing consumer preferences.
- Exxon could also explore investing in renewable energy technologies to pivot towards a more sustainable future.
Partnerships and Acquisitions
- Exxon and Speedway could explore partnerships or acquisitions with companies in emerging industries, such as electric vehicle charging or plant-based food, to stay ahead of the curve.
- Speedway could also look into partnering with ride-sharing companies or implementing a mobile app to attract younger, tech-savvy customers.
Ultimately, the success of Exxon and Speedway in the future will depend on their ability to adapt to changing consumer preferences and industry trends. By embracing innovation and sustainability, they can potentially overcome the controversy surrounding the change and secure a profitable future.
Why Did Exxon Change From Speedway?
What is Speedway?
Speedway was a convenience store and gas station chain that was acquired by ExxonMobil in 2018.
Why did Exxon acquire Speedway?
Exxon saw the acquisition of Speedway as a way to expand its retail business and increase its presence in the convenience store market.
Why did Exxon sell Speedway?
According to Exxon, the sale of Speedway was part of its ongoing efforts to streamline its business and focus on its core operations in the oil and gas industry.
Who did Exxon sell Speedway to?
Speedway was sold to the Japanese retail company Seven & I Holdings in 2020 for $21 billion.
How did the sale of Speedway affect Exxon’s business?
The sale of Speedway was seen as a positive move for Exxon as it allowed the company to reduce its debt and focus on its core business.
What does the future hold for Exxon and Speedway?
The future of Exxon and Speedway remains uncertain, but both companies are expected to continue operating and pursuing growth opportunities in their respective industries.