Critical Thinking 6
Halliburton has positioned itself in the Rocky Mountain Region (Colorado to North Dakota) over the last 3 years as a large, reliable company with superior oilfield service capabilities (Go Further, Faster) primarily in Production Enhancement, or frac. During the recent boom, it has captured a majority market share and set itself up well for the coming years in retaining it.
Oilfield is a very dynamic industry, fluctuating widely with the price of crude oil and technology (Williams, 2011). It is these large fluctuations that have led to the boom-and-bust nature of the business, including the recent boom in North ...view middle of the document...
S. was simply too high, Halliburton predicted a coming boom and maintained a large, dormant fleet (Brighton Newhire Class, 2010)**. In 2010, beginning with the gas boom and continuing with the pursuit of fracking for oil, that boom came and they were ready. The competition caught up, but not before Halliburton obtained a dominant market share and a number of guaranteed work contracts. In this aspect, Halliburton lived up to its promise to employees and customers to “Go Further, Faster” to the tune of bringing in $24.8 billion in 2011, over $14.7 billion in 2009 (Yahoo Finance, 2012) (Halliburton, 2012).
I support Halliburton’s strategy in this particular instance. Running a good business is all about knowing your market well and being ready when opportunity knocks. Halliburton did just that, by readying equipment for a boom few others predicted, and being ready to mobilize when the demand arose (this occurred most noticeably in the Rockies, but worldwide as well). They also marketed their position well by advertising just what customers wanted: Superior service, faster. Already well-known, Halliburton had a very simple strategy to provide a solution for a very big problem: getting tight formations to produce. Upstream oilfield is a small world, where customers saw what Halliburton did even before they advertised it. And it worked-to the tune of several...