Cases Study On The International Maket Development Stategy Of Private Oil Service Enterprises

The industry of oilfield technology service was separated from large state-owned oil companies,and most of the oil service companies were founded in the 1990 s.There are more than 1000 private oil service companies in China at present,among which about 50 are of large scale(Annual sales revenue is more that 50 million yuan).Compared with state-owned oil companies,private oil service companies have the features of short development period,small scale,limited business scope,small market share,flexible and rapid development.The most share of oil service market is taken by affiliates of CNPC,Sinopec and CNOOC,as a result,private oil service companies are struggling by seeking difference.On the contrary,the international oil service market has large scale,although some large international oil service companies,such as Schlumberger,Halliburton,have taken the most of market share,their business is concentrated in the exploration,drilling,completion and fracturing which belong to the front end of the industry,seldom gets involved in workover,water flooding,chemical flooding,and formation rebuilding at which private oil service companies are good.Compared with the domestic market,private oil service companies are more likely to take the market via their own differentiated products and service.Therefore,the research on strategies of exploring overseas market by analyzing the previous experience and lesson has great theoretical and practical significance for the internationalization of private oil service companies.Based on the research on strategies of exploring overseas market of private oil service companies,the comparison of cases of three representative companies,TOP SELECT Co.,Ltd.,Kerui Group,Petro-king Oilfield Services Ltd.,this paper analyzed the target market selection strategy and entry strategy for private oil service companies.During the selection of the target market,private oil service companies should follow three basic principles,including fully understand the macro and micro environment of the target market,risk control comes first and individuality.There are three main modes to enter the international market in China at present,including taking advantage of other large-scaled companies,contract mode and investment mode.In the selection process of market entry mode,control degree,resource commitment,risk communication are inconsistent with each other,so private oil service companies evaluate all of the factors and select an appropriate entry mode.