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Pacific Drilling The Preferred Offshore Driller Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2297 | 1538 Words (9 Pages) | Haiyang Li, Frederic Jacquemin, Toby Li | Ivey Publishing : W16201 |
A Word File
From the VRIN analysis, it is concluded that the source of competitive advantage for Pacific Drilling is their way of maintaining the relationship with their clients that would create the trust and loyalty of these clients is the factor that would help Pacific Drilling company to keep the large chunk of the customer base. Also, another source of competitive advantage is the high specification fleet which will allow Pacific to do work more productively and quickly. Also, technology-led Pacific Drilling Company to focus more on drilling operations like maintaining the day to day record and working differently as compared to other competitors and in order to ensure this differentiation point, Pacific Drilling has made the contract with Chevron to have access to DGD (dual- gradient drilling) technology that would allow the oil company to access reservoirs that had previously been considered “undrillable” and SAP software.
Following questions are answered in this case study solution
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Environmental Analysis
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Internal Analysis
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Sustainable Competitive Advantage Analysis
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Problem Statement
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Recommendations
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Questions for presenter
Case Analysis for Pacific Drilling The Preferred Offshore Driller
1. Environmental Analysis
i. Industry Analysis
Pestle Analysis
Economic Factors High influence
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Fluctuation of prices would determine either loss or profit. If after the project has been taken, and during that the prices dropped, then there would be a loss of billion dollars. so for that proper forecasting should be done prior acceptance of project.
Technological Factors High Influence
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Companies should see the technological developments by its competitors because technology is continuously evolving and should see at what speed the technology is disrupting the oil and gas offshore industry.
Legal Factors High influence should be considered throughout the drilling process
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To start the oil and gas drilling, the state level government give permission for development, drilling and operation permit separately and all these permits are taken prior to exploration and there may face some delays and penalties related to financial and legal. So legal compliances need to be considered before starting the process of drilling.
ii. Porter Five forces Model
Bargaining Power of Buyers (Strong)There is price fluctuations in this sector also there is high quality provided by the players, so the buyers affecting the industry profits and there are other competitors available to in offshore oil and gas drilling industry, so the power of buyer is higher in this sense. |
Bargaining Power of Suppliers (Low)The bargaining power of the suppliers is low, because the number of suppliers is greater than the number of buyers, so there is little or no price control on the suppliers. As the services or products used are standardized and there won’t be any switching cost of buyers to switch to another supplier. For to tackle with this low power, a differentiation strategy should be used by companies and technological innovation to stand out over other competitors. |
2. Internal Analysis
i. Competitors Analysis
There are several competitors of the Pacific Drilling company which includes: Diamond, Transocean, and Sea drill, Ensco, Noble, Rowan, Atwood, and Ocean Rig. The top two competitors are Atwood Oceanics and Diamond offshore drilling Inc.
Atwood Oceanics:
The future actions of Atwood Oceanics are that through mergers with companies under the same services, they would be going to compete in the market by getting a major chunk of the market. Like in 2017, Ensco acquired Atwood and expanded its fleet with high-end rigs, and become the world’s largest jack-up operator in the offshore drilling market (OFFSHORE ENERGY).
Diamond Offshore Drilling Inc.,
The Diamond offshore announced the comprehensive restructuring plan that would raise the new capital and financial stability and would be supported by the bank. The purpose of this action plan is to ensure that Diamond offshoring can continue to operate their differentiated fleet of offshoring rigs in a reliable and safe manner and face the challenging market. Also, the restructuring plan would allow the diamond offshoring company to have strong cash liquidity and benefit them from an ultimate recovery market (CISION PR NEWSWIRE).
ii. Value Chain Analysis
The value chain analysis helps Pacific Drilling to identify its key strong or weak areas and develop such areas to achieve a competitive edge over the rivals. So each and every activity in the value chain analysis are superior based on the nature of the business.
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Pacific Drilling |
Diamond Drilling |
Atwood Oceanics |
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Human Resource Management (Skilled Labor) |
Superior |
Superior |
Superior |
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Technology Innovation |
Superior |
Inferior |
Superior |
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