CASE STUDY ON

FRANK’S DRILLING SERVICES

CASE BACKGROUND
• Frank’s Drilling Service (Frank's International) specializes in drilling oil and
gas wells
• Scott Atkinson (salesperson) was preparing to contact the drilling engineer
at Oilteck
• Oilteck plans to drill approximately 12 new wells in the next six (6) months.
• Each oil well will require a drilling depth of approximately 10, 000 feet.
• The drilling service the company currently uses charges:
• Cost = $0.90 a foot
• Personnel = $1,200/hr (to operate the equipment)
CASE BACKGROUND
• They take about 16 days to drill each well.
• Frank’s charges:
• Costs = $1 a foot
• Personnel = $1,200/hr
• They only take 12 days to drill each well
• Scott believes his drilling crews save customers time and money
because they can drill a 10, 000 - foot well in 12 days.
Features, Advantages and Benefits

• FEATURE: Fast and efficient service

• ADVANTAGE: saves time
• (It will only take 12 days to drill a 10,000 feet oil well.)
• BENEFIT: saves money
• ($1,370,400.00 savings for 12 wells)
 Swot Analysis

• STRENGTHS
• Frank's International Drilling Services will take only 12 days to drill a
10,000 feet oil well compared to 16 days from the competitor
• They offer fast and efficient service
WEAKNESSES
• The price cost for the drilling is a little higher than the competitor
• $1.00 compared t0 $0.90
OPPORTUNITIES
THREATS
• Oilteck's loyalty to the current drilling service since they have been
using that for quite some time
• The $0.10 difference for the drilling cost