Abu Dhabi Gas Liquefaction Company (ADGAS)

Abu Dhabi Gas Liquefaction Company (ADGAS)

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Abu Dhabi Gas Liquefaction Company (ADGAS)

The oil and natural gas industry in the United Arabs Emirates (UAE) region is one of the largest producers of energy in the world. This industry has significantly supported the economy of this zone. For instance, in 2012, the income attained from hydrocarbon exports equated to $ 118 billion (Petroleum Economist Ltd. & Shell Gas & Power, 2001). Consequently, the UAE is one of the chief commercial entities in the Middle East despite the unstable fuel prices and global finance depression. The Abu Dhabi Gas Liquefaction Company (ADGAS) is one of the key participants in the oil and natural gas subsector that benefits the UAE and other countries that depend on these resources as their main energy source. Through the modern oil exploration techniques utilized by this organization, there is an increasing production capacity of natural gas in the region. In 2012, the annual production record of the Abu Dhabi Gas Liquefaction Company was 7,635 cubic tons. This exceeded the approximated quantity by 4.3 % (Sarkar, Al-Ali, Roy & Zamzam, 2012).

The targeted market for the products of this commercial organization is broad in terms of the geographical distributions as well as its clients. One of the major customers of ADGAS is the Tokyo electrical power company (TEPCO). It also has a large market share in such areas as the northern region of the United States, Asia, and Europe. Moreover, it supplies a significant amount of its products to the local market. In order to increase its overall market share and attain customer satisfaction, ADGAS employs various strategic plans in its daily operations. The production of quality goods and use of proper distribution channels has enabled the company to increase its returns over the years. Nonetheless, in the recent past, ADGAS has had to modify its energy exploration techniques in order to cope with the decreasing accessibility of these vital natural resources.

One of the factors that have resulted in the significant financial and operational growth of this corporation is its resources. To begin with, its management is competent and strives to develop all departments within the company including the production, marketing, and distribution subsectors. Additionally, the diversity among its workforce is a vital resource that has enabled the company to record a substantial growth rate. In addition to the current level of success, numerous opportunities will aid in the development of this firm. This involves the enlargement of the corporation’s market segment.

Likewise, the company is competent in its modern production techniques and distribution channels. For instance, it is the chief distributor of various energy sources such as natural gas in the local market as well as the exportation of these resources to other regions such as Europe, North America, and Asia. Its management has also been utilizing modern techniques in the production subsector. In terms of its competitive advantage, this company has a large market share in the local, regional, and international market segments. It also benefits from the support of the federal government and other stakeholders in the United Arab Emirates. This has enabled the company in its efforts to improve and expand its distribution channels, in addition to increasing the quality and quantity of its products. Accordingly, ADGAS has effective and practical strategies that have resulted in customer satisfaction. This is in accordance with the measures adopted by the management in order to portray the customers as a vital aspect of the company’s development (Spilsbury & Spilsbury, 2012).

ADGAS utilizes various concepts of the international strategy framework in order to increase its market share and attain customer satisfaction. One of the major constituents of this strategic plan involves controlling the targeted market segments by increasing the quantity and quality of its products. Subsequently, a larger number of potential clientele from various regions of the world access these commodities through the modern and improved distribution channels. In the recent past, the emerging markets have enabled the company in improving its international strategic plan. In terms of its entry strategy, the main approach employed by ADGAS involves exporting. This method has been effective in the attainment of global expansion for this corporation. For instance, it distributes natural gas on a large-scale entry to various European countries.

In future operations, the management of ADGAS should consider employing other entry strategies such as the wholly owned subsidiaries. This entry mode provides the parent company with full ownership of the properties in its subsidiaries. In addition to providing an appropriate platform on which the firm can engage in global strategic coordination programs, this approach will enable the organization to identify additional markets. It will also be possible to operate in a low production-cost framework (International, B.P.I, 2013). For example, through this approach, it can consider entering various market segments in Africa by distributing natural gas and other petroleum products. In conclusion, the management of ADGAS should modify its strategic plans in order to meet the needs of its clients from various geological zones. It should also strive to reduce its production costs while increasing the quality and quantity of its goods.

References

Petroleum Economist Ltd., & Shell Gas & Power. (2001). Fundamentals of the global LNG industry. London: Petroleum Economist Ltd.

Spilsbury, R., & Spilsbury, L. (2012). The oil industry. New York, NY: Rosen Pub.

International, B. P. I. (2013). UAE oil, gas exploration industry business and investment contacts handbook. S.l.: Intl Business Pubns USA.

Sarkar, P., Al-Ali, A., Roy, S., & Zamzam, M. (December 01, 2012). Workplace monitoring in ADGAS – A step towards employee well-being.