ProdEng: Services for Oil & Gas Extraction

Frank V. Cespedes; Maria Fernanda  Miguel; Mariana  Cal

Case | HBS Case Collection | September 2018

ProdEng: Services for Oil & Gas Extraction

by Frank V. Cespedes, Maria Fernanda Miguel and Mariana Cal

Abstract

In 2016 unforeseen Oil and Gas industry-wide demand slump drove ProdEng’s average service rates down by more than 37%, with EBITDA margins falling from 50% to 24% in the second half of 2016. Although the Partners remained optimistic about ProdEng’s long-term fundamentals and management team, the short-term challenges required that they act rapidly. However, they had divergent views on the path forward. Should they stay the course and focus on their core competencies or should they rethinking their approach to sales and driving profitability via spot contracts in a highly uncertain time?

Keywords: entrepreneurship; Sales; marketing; pricing; strategy; Entrepreneurship; Sales; Marketing; Price; Strategy; Latin America; Argentina;

Language: English

Format: Print

28 pages

Educators

Citation:

Cespedes, Frank V., Maria Fernanda Miguel, and Mariana Cal. "ProdEng: Services for Oil & Gas Extraction." Harvard Business School Case 819-003, September 2018.

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ProdEng: Services for Oil & Gas Extraction

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