Ka Wah Enterprises Low-density Oil Well Cement Replacement Capacity Study

Jiahua Enterprise developed low density series oil well cement and correlativeapplicable solution project recently, which is to resolve the problem of classificationcementing on low pressure fluid loss oil well in petroleum & gas field, which is also thesubstitute for ordinary oil well cement in low pressure fluid loss oil well market.Aiming at the substitute process of low density oil well cement, this thesisdistinguishes and analyses the competition structure between "incumbency"(existentproducts and service) and "substitute"(new products and service of low density seriesoil well cement substituting for "incumbency"), pointing that the competition between"incumbency" and "substitute" is not the competition of standard products but is thecompetition of service and series benefit gainers. Through the point of view from buyerand seller of trade, discussing the substitute value deeply; by analyzing the ratio ofsubstitute's performance and price and the conversion cost and conversion will of buyerto evaluate the value for buyer created by substitute;analyzing the payoff capacity ofsubstitute and establishing a new payoff pattern to evaluate the value for seller createdby substitute. Pointing that the buyer and the seller should urge the occurrence ofsubstitute and put forward the competition strategy of urging substitute or defendingsubstitute if they can achieve higher value through substitute.