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San Donato Milanese, 24/05/2019
CORPORATE AND BUSINESS STRATEGY
DETERMINATION TO PRODUCE SUPERIOR PROFITS
COMMITMENT TO TECHNOLOGY
PEOPLE
Creating fully integrated drilling and production systems around its various products
SCHLUMBERGER
OVERVIEW
oilfield services company
A history of success since 1926
One team. One view.
CORPORATE AND BUSINESS analysis
WHERE YOUR COMPETITORS ARE
WHERE YOU ARE
Revenue
Net Income 2018, M$
Net Income, M$
STRENGTHS
High level of customer satisfaction
Superb performances in new markets
Succesful track record of developing new products
Strong
Free Cash Flow
Highly skilled workforce
WEAKNESSES
Inability to tackle new entrants
Low investments in Research and Development
VALUE CREATION
VALUE CREATION
THE ISSUE
THE ISSUE
The threat of substitutes: renewable and clean energy
Risk of core rigidities
CUSTOMERS' STRATEGY
World top 34 publicly-listed companies spent 1.3% of total budgets of 260 billion$ on low carbon energy
Shell future plan: 1-2billion$ per year on clean energy technologies out of a total budget of $25 to $30 billion
Equinor future plan: 15-20% of the budget on renewables by 2030
POSSIBLE SOLUTIONS
Research and Development:
Improve investment in R&D of renewable energy sources to meet the growing demand.
ENHANCE INTERNAL COMPETENCE IN RENEWABLE ENERGY SOURCES
Resource Capability Enhancement Improve resources in Geothermal Services department since it is already part of the business.
M&A or JV with a start-up company which has strong financial performance in renewable energy business.
DIVERSIFICATION
Focus presence in high potential regions (i.e. Africa, Middle East and South America)
GEOGRAPHICAL CONCENTRATION
Thanks for the attention