RUNNING HEADER: ENVIRONMENTAL ANALYSIS
Strategies for Competitive Advantage MMPBL/590
April 30, 2012
Professor Adeline Boomgaard
Wilson began as a private distribution company in 1921. In April 1998, Wilson was purchased by Smith International, Inc. and has since executed major acquisitions on its own accord, purchasing Continental Emsco in 1999, Texas Mill Supply in 2000, and Van Leeuwen (USA) in 2001, as well as a number of smaller acquisitions along the way. These acquisitions have strengthened Wilson’s ability to offer products and solutions to the customer, including PVF, Mill, Tool, Safety, and Janitorial products, Integrated Supply, Inventory ...view middle of the document...
These issues do not directly affect the production of the Bakken but could turn the Bakken into a resource that not only provides oil companies with oil, but other resources as well. If one was to drive around the Bakken during the night hours one will see many flair stakes and flames across the prairie lands. These flair stakes are burning off natural gas that is being released during the fracking of the land. These gases can be captured and used to heat the homes in the North Dakota region. However, the capture of the gas has not been considered until recently. The average well head produces enough gas to heat a home for up to one year. Currently however there is no effective technology available to capture process and return to home for a fuel heating source. But as the wellheads increase across the region many companies are stepping up to the social and ecological issue and finding ways to enhance the technology to do so.
The CNG Technologies wellhead capture of natural gas is a project that applies compressed natural gas in conjunction with CNG technologies to economically capture and transport produced natural gas and gas liquids to market (Maloney, 2010). The technology was limited to only five well heads within the Bakken oil field. However, over the last couple of years the need to capture the gas has come to the forefront. The reasoning is that the larger oil companies feel the companies have a social responsibility to not leave an ecological impact on the prairie lands of North Dakota by allowing for further expulsion of these gases into the environment.
Wilson Supply can benefit from this type of services for the company has an extensive purchasing power that will allow for the company to become the sole if not the major supplier of the fittings and piping that would be required for such an operation. Currently it is estimated that the Bakken has thousands of wellheads that are releasing gases into the environment (Gonzales, 2010).
Wilson Supply is only one of the three companies that are providing supplies within the Bakken area. The competition is friendly and yet very competitive. Wilson Supply is based out of Houston Texas which is also the home for the distribution center for the company. However, this is not the only source that any branch within Wilson can transfer inventory. The branches are able to pull products from other branches from around the United States. If the company does not own the product the sales personal have the ability to purchase the product direct from the supplier or even one of the competitors. Considering the amount of branches within Wilson, Wilson takes pride in the fact that the company has established many purchasing contracts with the suppliers. The contacts allow for Wilson to have buying power that is much greater than the competitors.
With the growth of the Bakken increasing daily there are more companies entering into the area that want a piece of the American dream....