1 AIT Asian Institute of Technology

Strategic analysis and implementation plan for better utilization of local petroleum contractors in Vietnam : the case of Schlumberger Vietnam Oilfield Services (SVS)

AuthorTran Ngoc Thach
NoteA project submitted in partial fulfillment of the requirements for the degree of Master of Business Administration (Executive) in International Business – Management of Technology (VN)
PublisherAsian Institute of Technology
AbstractUtilizing local products and services is often a strategic solution for companies, especially foreign firms in a local market to gain operational efficiency and at the same time prove its corporate social responsibility for the local community. Very often, governments set policies to favor companies who run a high “local content” ratio in their operations in order to reinforce better use of local resources for community development. However, in Vietnam today as a developing country, the challenge is that the local supporting industry is still premature. Low quality of the local products and services is the biggest issue for foreign companies in this context. As a subsidiary of the Schlumberger group (SLB) – a leading multinational firm in the oilfield services sector worldwide – Schlumberger Vietnam Oilfield Services (SVS) had been a dominant player in the local market in Vietnam since its establishment, taking advantage of SLB’s technological competence and global resources. However in recent years SVS sees an ever increasing competition and its business has been fluctuating. SVS has taken countermeasures including utilizing local products and services to reduce operating cost and more importantly to increase its “local content”. However SVS has been struggling to find qualified local contractors in Vietnam that meet the SLB standard requirements on service quality. In a continuous effort to find an effective way for SVS to work with the local contractors for a win-win solution, this research examines SVS’s strategic competitive position, in order to systematically define the important role of the local contractors for SVS, look at how outsourcing of common operations could improve SVS’ operational efficiency and eventually come up with the implementation plan for improving the service quality of the selected local contractors for its utilization. The major aims of the research are on how to measure and manage service quality of the local contractors, make them improve their quality and conform to the Schlumberger worldwide quality standards.
Year2014
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (Executive) in International Business - Management of Technology (VN/BKK))
Chairperson(s)Badir, Yuosre;
Examination Committee(s)Winai Wongsurawat;Zimmermann, Willi ;
Scholarship Donor(s)Schlumberger Oilfield Services, Vietnam. ;


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