| Confronting with fierce market competition, oilfield service companies must be proactive in multinational business to enhance capability in world oil & gas exploration & development by making full use of global resources and increase competitiveness.China Oilfield Services Limited (COSL, stock code: 2883HK) is one of the largest integrated oilfield service players in China. The services COSL performs cover all phases of exploration, development and production. COSL specializes in four major services which include geo-physical, drilling, well services, marine support and transportation.This thesis, based upon the actual situation of COSL, proposes it get involved in international market to shorten the gap with oilfield services giants, such as Schlumberger, Halliburton and Baker Hughes, in business turnover and profits, asset operation efficiency, R&D input and output, and resist from overseas business risks. The challenges lie in both business expansion and management capabilities.In the process of overseas development, COSL encounters quite a few major problems, including but not limited to the following aspects, cycle fluctuations in oil prices lead to imbalance of equipment utilization rate, lacking of talents and experience in overseas business operations, being shortage of management system, cultural differences shock and cross-cultural communication barriers, intellectual property protection risks, world regional layout and optimization.This paper systematically analyzes COSL overseas development strategy, including strategic objectives and positioning. The company's overall strategic objective is to become one of the top-ranking international oilfield service companies in the world till the year 2020.After careful assessment of SWOT, COSL comes up with four core strategies, including Technology driven, Competitive cost structure, Integrated solution & Internationalization. Four main business segments make a clear strategic position as follows: drilling segment shall continue to expand overseas market share by virtue of its cost advantage and superior management. Well-tech segment shall be endeavored to create and add value to company through R&D, application and develop technology chain to offer comprehensive and better services to overseas operators. Shipping Segment shall be mainly working for domestic market and moderate tap overseas market on the condition that it has monopolized China market share and possesses excessive production capacity. Geophysical Division shall keep a close eye on oil companies'requirements, upgrading both technology service capability and equipment capacity.COSL must lay special emphasis on developing international markets to achieve its long-run strategy by means of cost leadership and business differentiation competitive advantages to demonstrate its operation high quality and efficiency.Finally, the paper proposes effective measures to realize COSL overseas development strategy including: organizational structure adjustment and BPR; building & strengthening corporate culture and international human resources; strengthening overall risk management; implementation of technology-driven to ensure sustainable development; establishing marketing network, using IT to improve efficiency; adopting asset and capital operation tactics to achieve leap development; establishment of overseas marketing BSC evaluation and incentive mechanism; outsourcing and value chain integration; building a learning organization & concept of innovation; strengthening international marketing capabilities and set-up CRM & client classification system to yield high percentage of economic value from major accounts.All these measures have practical and significant impact on building COSL to be one of the top-ranking international oilfield service providers in the world. |
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