| As one of indispensable parts of world petroleum industry, oilfield service companies have over 100 year's flexuous histories together with oil companies. In recent years, oil price rises continuously, and accordingly the investment of oil companies in upstream E&P increases, which provides an uncommon opportunity for the development of oilfield service companies. As a trend of world economy, economic globalization is deeper from 1990's. It drives the development of world economy and also provides oilfield service multinational companies a wider arena. Facing more opportunities and challenges worldwide, these companies are changing their business scope and competitive strategy in order to achieve more competitive advantages.Weatherford International Ltd. is one of the world's largest diversified upstream oilfield service companies. This paper chooses its ESP GUB as the research object. Firstly, this paper reviews the new features of multinational companies under globalization trend and influence of high oil price to oilfield service companies. It also has a brief introduction to the business of Artificial Lift System and Electrical Submersible Pumping System in world oilfield service market. Secondly, it has a deep research to the outside environment of industry and inside resources and capabilities of Weatherford and its ESP GBU. Then it analyses the competitive structure of ESP business using Michael Porter's 5 Forces Framework and summarizes the opportunities and threads from outside, advantages and disadvantages from inside of ESP business. Finally, it reviews the strategy objective of Weatherford and its ESP GBU, then it brings forward that Integrated Low-Cost & Differentiation Strategy is applicable to ESP business. After study internal relationship between Customer Value Based Competitive Strategy and Integrated Low-Cost & Differentiation Strategy, it confirms that ESP business should take customer value as the base to build competitive advantages. |
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