Huabei Petroleum Administration Bureau Operating Strategy

It is vital for a company to craft and implement a strategy under the situation of marketing economy. The company will lost its direction and energy if there is no corporate strategy guide. With our country's entry into WTO, more domestic companies have now realized the importance of crafting a strategy and implementing it. This dissertation clarifies the strategy of the Huabei Oil Field Company, for which the author is working.First, the author tries to identify the dominant economic traits of the industry, that is, oil technique operational service, Second,by using Michael Porter's five forces model of competition to analyze the industry's key driving forces. Using the least cost analytical tool, it is estimated that the oil technique operational service industry has a high entry barrier. At the meantime, the author finds out the four key success factors (KSFs), including innovation of technique, high quality of service and fame, low cost and good relationship of customer. Based on this, the author draws the conclusion that this industry is attractive to the Huabei Oil Field Company.Basically, the "SWOT" analysis method is used in evaluating the company resources, competitive capabilities and how to fit the external environment,and a clear understanding of the company's resource strengths, resource weakness, opportunities and external threats is thus obtained. Using the brand competitiveness index, the Huabei Oil Field Company is assessed as high in its market competitiveness and the goal of the company is to become the leader of the oil technical service area. After that, strategic group mapping of market is adopted for analyzing the market direction and principle. As a result, the author suggests that the best-cost provider strategy should be chosen as the company's competitive strategy. After that, four functional strategies are worked out, including human resources, marketing, R&D, and operations.