The And Integrated Systems Management

804 Words Aug 13th, 2015 4 Pages
4.4 Yips Framework Analysis
• Market Drivers
There is a rising global demand for oil, which has prompted many oil companies to increase their oil production outputs. Common customer needs in the area of drilling and integrated systems management mean that Schlumberger can standardize its services across continents. This means that the need for global marketing is significantly reduced, as marketing techniques become transferable. Ultimately, this results in economies of scale for Schlumberger.
• Cost Drivers
Schlumberger enjoys global technological advantages over its competitors. This not only lowers its product development costs due to decreased inefficiencies, but also increases its global brand value. In addition to technology, Schlumberger also enjoys a wide range logistical advantage over is competition in regards to its global operations. Thus, Schlumberger is able to drive down its operation costs by leveraging on its logistical advantage to identify the most cost-effective countries around the world to set up operations.

• Competitive Drivers
The manor global competitors of Schlumberger besides Halliburton and Baker Hughes are but a handful. Like Schlumberger which has operations in over 80 countries, Halliburton and Baker Hughes have also diversified their operations from their initial countries of origin. The rationale for this diversification is that the oil and gas industry is characterized by both high import and export volumes and therefore favors close…
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