| Abstract | Currently, Vietsovpetro is still the leader in oil and gas exploration and production in Vietnam. However, its crude oil production outputs have been declining significantly and the company‟s internal growth and benefits have dropped down significantly. For years, the company‟s revenue and profits were merely relied on crude oil production output and sensitive to high price of crude oil. Realizing this problem, the company has expanded its upstream services to the oil and gas upstream market in Vietnam for the purpose of maintaining sustainable growth. Nevertheless its efforts, the current revenue of service sector is still under the company‟s expectation and extremely under the market size. For this reason, the research purpose is to analyze services business situation of the company and find out how to enhance its upstream business efficiency respectively.
The research covers market situation and requirements, core competences, five forces, SWOT and competitive advantage analyses. Primary and secondary data are used for these analyses. Primary data collection is carried out by interviewing customers‟ representatives and the company‟s managers and employees. Secondary data is collected from reports and articles.
The research found out that the big gap of market shares exists between the company and leading international competitors in upstream service industry in Vietnam; the market requires competitors to provide services to customers with full benefit, quality, speed, price and professionalism; the result of industry analysis by using five forces model showed that, in future, the intensity of rivalry would be slightly reduced but still high, buyers would have more bargaining power, suppliers would have less bargaining power, threat of new entrance and substitute would be high; the result of SWOT and competition analyses showed that, the company‟s competition positions would be aggressive, diversification or turnaround, and, the company could use its high resources and capabilities together with certain renewal strategies to gain sustained advantages over competitors.
Finally, the research made important conclusion that, the company should pursue its core competent products and services for the market, by establishing and implementing key strategies such as organization restructuring, renewal of HR policies, knowledge management, differentiation and diversification. |