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Halliburton Swot Analysis and Evaluation of Competitive Businesslevel Strategies

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SWOT Analysis Strengths As earlier mentioned, Halliburton is among the leading players in the oilfield services provider in the world. This gives the firm a strong market position and a considerable market share. Moreover, the company shows strong financial performance as far as their financial reports and statements are concerned. The company offers diverse services and products, thus has a diverse stream of revenue. Due to its early establishment and expansion to over 70 countries, the company has a strong manufacturing capability, as well as an established research and development department capable of carrying out comprehensive research on oilfield related concerns (Data Monitor, 2008). Weaknesses Among the most significant weaknesses of the company are litigation issues. In recent years, Halliburton has seen several lawsuits regarding its performance and other work related issues (Data Monitor, 2008). The latest of these charges that Kellogg, Brown, and Root, a subsidiary of Halliburton, refused to pay over $20 million for food and other work carried out by Morris Corporation and Kuwait Company for Process Plant Construction and Contracting (Bruno and Valette, 2001). This, among other charges, may effectively paint a bad company image to the company. Another weakness of the company is the subjection to criminal investigations, and the impairment of gas and oil properties. Opportunities Due to its strong establishment and financial prowess, the company has numerous opportunities for expansion, including acquisitions. Moreover, North America has an ever-increasing demand for natural gas. This, combined with the positive outlook for the gas and oil sector, provides the company with opportunities for growth and expansion. The company recently opened a second corporate headquarters in United Arabs Emirates, which is a successful move considering that UAE is among the leading oil exporters in the world (Halliburton, 2007). Threats The company is among the leaders, thus all competition is directed towards the company. In addition, the recent financial downturn and slow economic growth in the European Union and the US may adversely affect the operation of the company. Lastly, environmental regulations are becoming stricter globally, thus affecting the company’s operation (Bateman and Snell, 2007). Competitive Business-level Strategies Halliburton has grown in leaps and bounds to top the oilfield service industry and maintain its competitiveness despite significant challenges. The company employed several strategies and streamlined their operations to reflect their objectives. The most evident business-level strategy is setting up business in the area of experience and knowledge. Experience and knowledge in the business area is very crucial to the success of a business startup. Indeed, most businesses fail in their initial year of operation due to the limited knowledge and experience of the proprietor. The founder of the company, Erle Palmer Halliburton, has considerable experience and expertise in the oilfield industry before venturing to start a company (Griffin, 2007). His greatest asset was not capital, but experience and knowledge. In addition, the company was unyielding to initial rejection. In all industries, companies face rejection in their initial years of operation. Indeed, all successful businesses experience such occurrences. In essence, the market is often hard to break