Journal of Production Economic

Running head: OIL AND GAS INDUSTRY
Strengthening Market Position
Name of the student
Name of the university
Author Note:

1
OIL AND GAS INDUSTRY
Table of Contents
Answer 1..........................................................................................................................................2
Dependency on third party firms in terms of core operations:....................................................2
Lack of competitive strategy:......................................................................................................2
Answer 2..........................................................................................................................................2
Its new status in the ‘intelligent pigging pipeline services’:........................................................2
Lack of training:..........................................................................................................................3
Answer 3..........................................................................................................................................3
Technology:.................................................................................................................................3
Sustainability:..............................................................................................................................3
Answer 4..........................................................................................................................................4
Long term supply chain:..............................................................................................................4
Bibliography:...................................................................................................................................5

2
OIL AND GAS INDUSTRY
Answer 1.
SEG should eliminate the following factors in order to strengthen its position in the Asia-
Pacific oil and energy market:
Dependency on third party firms in terms of core operations:
SEGA Oil and Gas Sdn. should eliminate its dependency on third party firms especially
in order to carry out core operations. The very fourth paragraph clearly mentions that SEGA has
entered into agreement with GE and TPS as operate as its technology partner and marketing
partner respectively. The case study then goes to mention that TPS, its marketing partner, is
providing it insufficient job contracts. This means that the dependency of these two companies
were proving unprofitable and should be terminated.
Lack of competitive strategy:
SEGA should eliminate its lack of competitive strategies to compete with its main rivals
namely, ROSEN and ROMSTAR. This would boost its competitive strength in the Asia-Pacific
region and revenue generation.
Answer 2.
The following are the factors which SEGA should reduce in order to strengthen its
position in the Asia-Pacific market:
Its new status in the ‘intelligent pigging pipeline services’:
SEGA should aim to reduce its new status in the intelligent pipeline market in the Asia-
Pacific region. The very ‘Strengths’ section in the case study clearly mentions that the oil
operators of Malaysia, the main customers of the pipeline clearing companies have limited

3
OIL AND GAS INDUSTRY
knowledge about the company namely, SEGA. This means the company has limited customer
base and revenue base. The company should aim to reduce its newness in the market.
Lack of training:
SEGA should aim to reduce the lack of training of its employees and in fact emphasize
on training its employees. This would enable it to gain autonomy over its core operational
aspects like technology and marketing. This would strengthen its position and revenue
generation in the extremely competitive market energy in Asia-Pacific region.
Answer 3.
The following are the factors which SEGA should raise above the standard of the
industry to strengthen its position in the market:
Technology:
SEGA should raise its level of technology under command in order to serve more
business customers. The ‘Opportunities’ section of the case study clearly that the company
owing to its presence in the introduction stage in business life cycle has access to limited
resources compared to its already established competitors like ROSEN. Thus, access to advanced
technology would enable it to use technology to make up for the scarcity of resources.
Sustainability:
SEGA should aim to strengthen its sustainability in the Malaysian market in order to
strengthen its position in the market. The ‘Conclusion’ section in the case study clearly mentions
that the company should aim to cement its position in the energy industry to survive in the
intense competition from already players like ROSEN.

4
OIL AND GAS INDUSTRY
Answer 4.
The following is the factor which should be exclusively created in to strengthen the
position of SEGA oil and gas industry:
Long term supply chain:
SEGA should aim to create supply chain which would serve its business needs
exclusively. The case study clearly mentions that SEGA is dependent on TPS to market its
services and acquire pipeline tenders. The case study also mentions succinctly that the latter was
acting unethically by providing SEGA with less works contract, thus contributing to the lack of
the revenue generation of the former. Thus, it is clear that SEGA should acquire its own supply
chain which would provide it with works contracts. This would strengthen its inflow of revenue
generation and strengthen its position in the market. This increase in revenue generation would
enable the firm to acquire technology and manpower. Thus, it can be concluded that acquisition
of long term supply chain would strengthen the position of SEGA in the oil and gas pigging
market.

5
OIL AND GAS INDUSTRY
Bibliography:
Investkl.gov.my. (2019). Retrieved 29 December 2019, from
http://www.investkl.gov.my/Relevant_News-@-
The_opportunities_and_the_outlook_of_the_Malaysian_oil_and_gas_industry.aspx
Maktoubian, J., Ghasempour-Mouziraji, M., & Noori, M. (2018). Oil and Gas supply chain
optimization using Agent-based modelling (ABM) integration with Big Data technology.
Raut, R. D., Narkhede, B., & Gardas, B. B. (2017). To identify the critical success factors of
sustainable supply chain management practices in the context of oil and gas industries:
ISM approach. Renewable and Sustainable Energy Reviews, 68, 33-47.
Silvestre, B. S. (2015). Sustainable supply chain management in emerging economies:
Environmental turbulence, institutional voids and sustainability trajectories. International
Journal of Production Economics, 167, 156-169.