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Baker H

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Submitted By ekna
Words 733
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Baker Hughes:
Brief Overview:
World’s second largest fracking company (Seeking Alpha)
Formed as a corporation in April 1987 by the merger of Baker International Corp and Hughes Tools Company
Operate in 80 countries (10-k)
59400 employees (10-k)
45% of revenues generated in US, 55% generated in North America (Hoovers)
Customers: larger integrated oil & gas companies- US companies, international independent companies, and national or state-owned companies
Segments:
Drilling and Evaluations,
Completion and Production,
Industrial Services and Other (provide products and services to downstream chemicals and process & pipeline industries) (10-K)
Key Resources and Capabilities:
Sales organizations- market its own products within the four geographic areas
Provide service for products through stock point and service centers located in areas of drilling and production activities throughout the world (10-k)
Placed managment close to customers to facilitate strong customer relationships and quick reactions to local market condutions and customer needs (10-K)
Remote operation centers allow for the interpretation of data in the field to help customer's "steer" as drilling well (Youtube interview with Derek Mathieson)
New advances: sand control for deepwater markets, MWD, LWD (EPMag Interview)
Acquired BJ services
Greatest competitive advantage in drill bits, packers and downhole motors
Reputation for quality downhole tools and equipment (Seeking alpha)
FracPoint completion system?
Strategy to Increase Viability and Sustainability:
Investments in technology
R&D increased 12% in 2013 and 8% in 2012
Aquistions
Branding strategy
Increase brand recognition and value associated with brand
Minimized use of BJ services trade name after acquistion to promote Baker Hughes branding strategy (10-k)
Announced strategy transition in 2009 (still in

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