Evaluating & prioritizing market adjacencies in oil & gas

The Situation
  • A tech solutions provider operating in the oil & gas (O&G) space hired Stax to support their growth strategy by helping better understand growth opportunities in O&G production operations.

The Assignment
  • Carried out a collaborative working session to gain a thorough understanding of our Client’s current and intended strategic position, define the production operations ecosystem and identify which segments aligned best with their vision.

  • Used a multi-layer approach, assessing customer needs, market characteristics and potential entry strategies to prioritize market adjacencies to evaluate in more detail.

  • Applied market attractiveness metrics and synergy metrics to objectively assess each prioritized segment.

The Benefits
  • Based on findings, Stax prioritized four adjacent markets which provided our Client with a means for expansion as well as an opportunity to mitigate future risk.

  • We also highlighted the near term opportunity in tech solutions which mitigate the existing challenges faced by O&G producers.

The Finding
  • We identified several challenges faced by O&G firms, which made our Client’s plans for expansion within O&G production operations timely.

  • Furthermore, producers recognized and embraced technology-based solutions as a means to help stabilize and improve oil and gas production operations in this challenged market environment.

  • Initial findings revealed that Seg B and Seg E were compelling growth markets for our Client where Seg F & G presented sizeable opportunities.

  • Further research and the market attractiveness metrics highlighted Seg B and Seg F as most attractive for our Client while synergy metrics highlighted Seg E and Seg B as being best aligned with our Client’s existing footprint and strategic vision.