Dominant Firm Model

Dominant Firm Model

Table of Contents

NoSeam - Company Background 3
The Product – Seamless Carbon SteelTubulars for Petroleum Industry. 3
Production process 4
Industrial standards: 4
Seamless Pipe Market Worldwide 5
NoSeam’s Global Low Cost Competitive Strategy 5
The Oligopolistic Market of Seamless PREMIUM Pipes in Egypt 5
Oligopoly by Definition: 6
Key characteristics of the Oligopolistic Market of Seamless PREMIUM Pipes in Egypt: 7
The Dominant-Firm model adopted by NoSeam 8
Dominant Firm Price Leadership Model 8
How NoSeam applied the Dominant-Firm Model: 9
No Seam - Dominant Firm Model Graph and economic data. 10
Conclusion 12
References 13

NoSeam - Company Background
NoSeam is a multinational seamless pipe manufacturer that entered the oligopolistic market of seamless tubulars in 1990. The company started with acquiring and renovating its 3 main steel producing mills in Japan, France, and Brazil. By the year 1999, NoSeam had expanded its operations exponentially to include 2 other steel producing mills in China and Czech Republic, and various finishing facilities in different countries worldwide such as USA, Taiwan, and Saudi Arabia.

The Product – Seamless Carbon SteelTubulars for Petroleum Industry.

Seamless carbon steel tubulars are basically pipes that are installed in the oil & gas wells.
In order to drill a well, a pipe –referred to as “casing”-has to be inserted into the well hole so the well does not collapse. Consequently, in order to be able to produce the fluid (oil or gas) from this well, another smaller pipe -referred to as “tubing”- has to be inserted into the casing to allow for fluid production.

As you can see in the illustration, a well comprises a set of pipes of different sizes placed into one another in a telescopic manner and can reach total depths ranging from 5000 up to 15000feet under the ground.

Production process
The most important characteristic of a seamless pipe is that it has no seam. The...

Similar Essays