Research On Development Strategy For CNOOC Energy Technology & Services-Pipe Engineering Company

CNOOC Energy Technology & Services-Pipe Engineering Company(in short as Pipe Engineering Company,hereinafter referred to as “the Company”)is one of the subsidiary companies providing professional services of CNOOC.The Company is dedicated in production,R&D,coating and installation of offshore gas pipeline,as well as relevant business of port construction.The Pipe Engineering Company realized breakthrough in submarine gas pipeline techniques in 2007 when the company was established.With the growing international gas price,the Company made high returns through domestic sales and created remarkable achievements.However in 2014 when there was a sharp drop on international gas price,as an offshore oil exploration company,its business was severely affected.A number of conflicts and problems hidden in previous high price market arose.The Company focused on lowering the cost and increasing the efficiency,and explored overseas business,which resulted in moderate recovery.What's worse,the international gas price especially Brent and WTI plummeted to 30 USD,the lowest price since last 4 years.Winter comes again and there are more challenges for the survival and development of the Company.Based on the current market situation of offshore gas pipeline industry,the study applies enterprise strategic management theories and methodologies to summarize and analyze the problems found and experience accumulated during the crisis.According to the pros and cons of the Company and market development trend,a suitable development strategy along with strategy targets and strategy protection measures will be tailored as a reference for the survival of the Company in long-term low price market.Analysis include PEST of macro environment,Porter Five Force Model of industry status quo,and SWOT of company internal situation.Strategies adopted are Turnaround Strategy as direction,Intensive Development Strategy as strategy type,and Internal Development and Strategic Alliance as implementation approaches.Core suggestions for implementing the strategies are accelerating the organization restructure,laying emphasis on R&D,increasing overseas business and focusing on lowering cost and improving efficiency.Advices on modification and protection measures will be explored.The development issues that the Company is facing share high similarities with those of state-owned SMEs.This study is closely related to national strategies like supply-side reform,strengthening international collaboration,deepening the reform of state-owned enterprises.It is meaningful to prosper the Northeast Industrial Base and solve the issues of state-owned enterprises in this area.