COMPANY PROFILE -Schlumberger Limited
Business Sector :Oil Field Services & Equipments
Operating Geography :Europe, France, Global
About Schlumberger Limited :Schlumberger, founded in 1926 in France, it is world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. The company has four principal executive offices located and in Paris, London, Houston and The Hague. It employs over 100,000 people of over 140 nationalities operating across 85 countries
Schlumberger Limited Revenue :US$ 27.8 billion in 2016
Competitive Analysis of Schlumberger Limited
|1. Diversity of workforce|
2. Technology innovation & infrastructure
3. Extensive service offering
4. Market share leadership
|1. Weakening financial position from past two years|
2. Significant revenue from Non-US states exposes company to several risks
3. High dependency of revenue on the level of expenditure by clients
|1. New mergers & acquisitions|
2. Rising demand of oil and natural gas as fuel
|1. Dynamic prices of crude oil and natural gas|
2. Rise of substitute fuels
3. High environmental compliance cost
4. Failure to retain skilled personnel
5. Severe weather conditions
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Detailed SWOT Analysis of Schlumberger Limited
1) Diversity of Workforce: Individual of diverse nationalities, values and culture work together and share common objectives. The company operates in truly global context and encourages fair employment practices worldwide. The company strives to attract and retain its best performers worldwide by addressing their needs and concerns in terms of quality of life and career expectations. Company maintains its competitive edge by creating variety of perspectives through diverse workforce that stimulates creativity and innovation.
2) Technology Innovation & Infrastructure: The Company’s commitment to technological innovation and quality services are point of differentiation to compete with small and large competitors which vary geographically w.r.t. different services offered. Also, developing IT infrastructure by implementing Software Integrated Solutions to customers for excellent data analysis for different services.
3) Extensive service offering: Schlumberger Oilfield Services operates in each of the major oilfield service markets covering the entire life cycle of the reservoir. These services are organized into seven technology product lines which are Reservoir Characterization, Drilling, Reservoir Production, Drilling Solutions, Wellbore Productivity and Environmental Solutions. Schlumberger holds leading positions in many product lines within the Geo Market Regions.
4) Market Share Leadership: Schlumberger dominates the oilfield segment with 11.81% market share. Followed by its competitors Baker Hughes Inc., General Electric Company and Halliburton Comany with market shares of 5.36%, 5.48% and 4.53% respectively.
1) Weakening Financial Position from past 2 years: Schlumberger’s revenue of $ 27.8 billion in 2016 decreased by 22% from 2015, without the revenue from Cameron Group, this decline accounts for 34%. This drop was due to weak exploration and production spending as a result of deepest industry downturn in more than 30 years (up to $26 per barrel).
2) Significant revenue from Non-US states exposes company to several risks: Non-US operations accounted for significant portion of revenue, approximately 80% of consolidated revenue in 2016, 78% in 2015 and 71% in 2014. Operations in each of the over 85 countries exposes the company to various social, political, legal and economic risks in doing business.
3) High dependency of revenue on the level of expenditure by clients: Demand for majority of services is heavily dependent on customer expenditure on the exploration, development and production of oil and natural gas reserves. These expenditures are directly dependent on customer’s view of future oil and natural gas prices and affect the demand. As a result, many customers have reduced their spending on E&P which had adverse financial impact.
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Schlumberger SWOT and PESTLE analysis has been conducted by Manashvi Mistry and reviewed by senior analysts from Barakaat Consulting.Copyright of Schlumberger SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions page for usage guidelines.