Answer To: Schlumberger LtdCompany Project details • Coverpage and references page are required. • Total number...
Deblina answered on Oct 28 2021
SCHLUMBERGER LIMITED: COMPANY DETAILS
Table of Contents
Company Background 3
SWOT Analysis 3
Marketing Strategy 4
Marketing Mix 4
Consumer Analysis 6
Segmentation 6
Targeting & Positioning 7
Organizational Competitive Strategy & Competitive Advantage 7
Sustainability Approach 8
Porter’s Five Forces Analysis 9
Brand Equity of Schlumberger Limited 10
Technological Development of Schlumberger Limited 10
References 11
Company Background
Schlumberger Limited is an American oilfield services company. It is one of the world's leading oilfield services companies that supply technology, information solutions, and integrated project management that operates in optimizing the performance for the customers that are operating in the oil and gas industry globally. Schlumberger Limited is known for the knowledge and technical innovation that they render in their services. The company has been started in the year 1926 as an Electric Prospecting Company in France by Conrad and Marcel Schlumberger. Initially, the company sold electrical measurement mapping services and recorded the first-ever electrical resistivity well in France in 1927 (Schlumberger Limited, 2020).
The company expanded quickly thereafter and it locked its first well in the United States in 1929 in Kern County of California. Thereafter, in 1945 the Schlumberger Well Surveying Corporation was founded in Houston later it was evolved into Schlumberger Well services and Schlumberger Wireline and testing services finally. In the year of 1960, Dowell Schlumberger founded pumping services of the oil industry. And in 1962 it became listed on the New York Stock Exchange. In 1964 the company purchased 50% of the FOREX and merged with 50% of Languedocienne and created the Neptune drilling company. This company later merged with the SEDCO FOREX Drilling Company in 1984. Over the years it continued to expand with its operations and acquisitions.
In recent times the company has been deliberately delivering real-time technology, services and solutions search enabling the customers to translate the acquired data into relevant and useful information. This is also helping them to transform the information into knowledge and take improved decisions anytime and anywhere. The company has been operating in more than 120 nations and has an employee of over 1.5 hundred thousand of more than 160 nationalities. The company is presently operating with 25 Research and Engineering facilities globally and it operates with a strong emphasis on developing innovative technologies that multiply the value for the customers.
SWOT Analysis
Schlumberger Limited is a world leader in the oil and gas industry. It supports oil and gas exploration and production globally. As all business is influenced by different factors company also experiences several factors that influence the operation of the organization. It includes the external and the internal factors that are guided by the strengths weaknesses opportunities and threats faced by the company in the industry.
Strength
· The strong market position.
· The company has a steady growth of revenues.
· The Global presence and diversified services offered by the company.
· A leader in Technologies and innovations.
· Availability of the diversifying workforce. The company operates with more than 150,000 employees and operates in over 12 countries.
· Technology Innovation and infrastructure of the organization.
· Extensive service offering by the company makes it a leader in the market position and a vast market share.
Weakness
· The slow growth of revenues in the Western GECO products and services.
· The industry is flooded by several companies and there is a large number of companies that offer similar products and services.
· The company has serious issues regarding the lawsuit challenges that it faces due to environmental factors. For instance the aspect of Norwood Resource Crisis.
· The weakening financial position of the company in the past five years has also been a major issue with the company.
· Significant revenue from the non-US states exposes the risks of the company to several extents.
· The dependency of the revenue on the level of the expenditure of the clients is also an aspect that the company has been facing.
Opportunities
· The company has got and a significant position in the global market.
· It has an entire range of necessary tools to improve on the existing technology and innovations.
· The company can associate with the increase in oil and gas production during the peak season.
· It has continued to explore and discover new oil fields.
· The company has always searched and got the aspect of new mergers and acquisitions.
· The rising demand from the developing countries like India and China for oil and natural gas as fuel.
Threats
· The company faces political risk in some of the oil-producing nations that have been deliberately harmful for its operation.
· Dynamic price movement and fluctuations of the economic variables in the oil and petroleum market are another significant threat to the company.
· The oil and gas industry is relatively volatile and it usually follows the disruptions of the economy.
· The number of firms in this industry has increased over time and numerous alternative forms had come up with innovative technologies.
· With the increase in the environmental aspects, the company is facing a serious issue with high environmental compliance costs.
Marketing Strategy
The company offers products and services that are associated with the modern methods of exploration and production of oil and gas. It is also associated which services that provide innovative solutions and technical consultancy services for a wide range of global clients. It also aims to create products and services that have been permanently significant in the fast-paced hydrocarbon market. The company strives to be one of the best aspects in the current supply and exploration. However, in recent times it has been investing heavily in research and development and opting for more innovative technological solutions (Schlumberger Limited, 2020). The company holds a leadership position in the oil and gas industry and uses an effective marketing strategy to keep its position as a leader in the market. The company has initiated several strategic aspects to position itself as a market leader and can succeed in the international market because of the aggressive approaches that it uses for oil and gas exploration to production. Schlumberger uses promotional strategies that focus on social responsibilities and has deliberately emphasized environmental conservation.
Marketing Mix
The marketing mix model of Schlumberger is effectively discussed in the section. The marketing mix comprises of 4 P's that include product, pricing, place, and promotion.
Product- the marketing strategy of the company reflects the solution that the company provides to the customers by developing a unique product design and unique services that make it to be an outstanding brand in the competitive market. The product strategy of the company is usually contemplated by quality, variety, features, packaging, brand name, and augmented services. These aspects are considered to develop a unique product strategy.
Pricing- The marketing strategy that focuses on evaluating the value of the products to the consumers is an effective way to take a position within the market. It focuses on setting the list price, credit terms, payment period, and discounts that the company will be operating to get the maximum profitability in the market. Schlumberger has made an effective move by choosing the price penetration strategy which emphasizes setting a lower price than the competitors in the initial stages of operation. This has been one of the most strategic aspects in the market that makes the company win the market share based on discounted pricing. However, this is managed accordingly in response to the retaliation from the competitors which makes it an eminent company to be the winner in an undesired price war. Schlumberger is an eminent company that has also taken up the skimming strategy and requires effective communication of differentiation based on the differentiation that is operating justified by the extra price that is charged (Virman, 2019)
Place- The marketing strategy of Schlumberger Limited makes use of an important decision while developing its distribution plan. It effectively decides whether the customer company demands the product based on the channels or it needs a unique distribution partner to solve them. It also focuses on the aspect that the distribution will be direct or indirect. Direct distribution usually involves no middleman whereas the indirect distribution strategy adopted involves several middlemen. Schlumberger makes a prime focus on the traditional brick-and-mortar distribution network and online distribution networks or a combination of both.
Since in modern days, the customers give high importance to the convenient aspects and easy availability, Schlumberger focuses on the selection of the right distribution channels. The company mostly considered the product characteristics. If the product is a...