Introduction
Oil is a very important commodity since its products are used for domestic and industrial purposes. However, its supply is scarce and this makes it be a very precious commodity. This explains why countries that have oil deposits command international markets. For instance, the Arab region is an indispensable player in the international market even though it does not have another reliable source of income apart from oil. This paper is a report about the history and growth of the Canadian International Oil Corporation.
Background
Canada is the third largest world producer of oil after Venezuela and Saudi Arabia; therefore, this country has a lot of oil deposits in its deserts. In 2007, it was estimated that this country had more than 167 billion barrels of oil that were mostly concentrated in Alberta. The Canadian International Oil Corporation is a privately owned company with subsidiaries in Houston, Calgary, and other regions in the world. It focuses on onshore mining and drilling of gas and oil respectively using conventional and unconventional ways (Charleston 2010). It has employed permanent and part-time highly qualified specialists to manage its activities and ensure it produces world-class products. The company was established in 2010 in Texas to ensure it maximizes the potential of Canada in providing oil products to the public.
Many companies were working in these oil fields under different names and controlled by different investors. However, they faced serious challenges in establishing their foundation in Canada and competing with other established companies. Therefore, it was prudent for these players to come together and form the Canadian International Oil Corporation. They have invested a lot of human and monetary resources in the company to ensure its activities can attract huge international and local clients (Martins 2011). Therefore, this has enabled it to invest heavily in other countries and compete with giant exporters of oil from the Arab region.
International Investments
The demand for oil and its products is usually felt in all regions in the world and this allows this company to make use of the international market. It started widening its operations by investing in other regions like Houston and Texas. The success of these branches motivated the stakeholders to start investing in international markets like the United States. However, before this was done, it ensured the following issues addressed. First, it ensured it had acquired adequate oil fields and deposits to supply the local and international markets. This means that it assessed the market volume offered by both foreigners and locals before investing in the international market.
This ensured that it had adequate funds and stock to participate in international trade. It is common sense that international trade requires a huge volume of goods or services since there is a large market for them (Andibas 2010). This company acquired both offshore and onshore oil deposits that are estimated to last for the next seventy years. This means that it will supply oil to international markets for more than six decades. Besides, it invested in human resources and ensured it hired qualified professionals in its branches. Moreover, it trains workers regarding various issues that are associated with oil products. This ensures they have relevant skills and knowledge to promote the activities of this company. The availability of trained and qualified employees motivated it to expand its activities to international standards.
Entry and Marketing Strategies
International operations are very complex and time-consuming; therefore, they require efficient strategies to ensure a company’s activities are relevant. This company has adopted different ways of managing various issues regarding international competitions and operations. First, it has partnered with other similar companies in ensuring it enters international markets without getting stiff competition from local investments. Its branch in the United States was not just opened in isolation but the company used another related business to enter this market (Mayors 2011).
This becomes an effective way of minimizing the costs of establishing new branches in other countries. Secondly, it has identified the need to maintain stable prices even though this field is highly influenced by global activities. It has developed financial and operational strategies to ensure it manages to control the prizes of its products. This has motivated and developed trust in many clients who are usually affected by price fluctuations. This company has taken advantage of this situation and ensured its clients rely on its services despite the economic crisis and terrorism effects that have affected most international operations. For that reason, the future of this company is very bright given the high demand for oil and gas products in local and international markets.
Conclusion
The Canadian International Oil Corporation is a well-established company that has a high potential for widening its operations since it has developed trust with clients. Also, it has maintained stable prices of its commodities and a constant supply of products. Even though it faces stiff competition from other operators, it has managed to control the international oil market by producing cheap and affordable products.
References
Andibas, T. (2010). Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. New York: McGraw-Hill.
Charleston, S. (2010). The Boston Consulting Group on Strategy: Classic Concepts and New Perspectives. New York: Wiley.
Martins, D. (2011). Financial Crisis Management and the Pursuit of Power: Global Finance. Farnham: Ashgate.
Mayors, M. (2011). Understanding Michael Porter: The Essential Guide to Competition and Strategy. Boston: Harvard Business Review Press.