Entering China: A Strategy for Electromagnetic Geoservice AS in the Offshore Oil Exploration Industry

ElectroMagnetic GeoServices AS (EMGS) is a pioneer in using the SeaBed Logging (SBL) technique for offshore exploration and field management. SBL technique is a patented electromagnetic exploration method that can significantly increase reliability of discoveries of oil fields and identify the most attractive drilling sites in deep water areas. Through leading-edge SBL technology and high quality services, EMGS has established itself as a market leader in emerging electromagnetic survey industry. In order to broaden its customer base and increase profitability, EMGS intends to expand into rising Chinese offshore industry. For this purpose, a strategic analysis of electromagnetic survey industry and EMGS is conducted. By identifying critical success factors and incorporating those factors into company's core competencies in technology and services, the report further recommends the combined differentiation and cost leadership strategy, followed by a detailed implementation plan, for EMGS to enter Chinese offshore exploration market and enhance its long-term business opportunities in China.