Business Strategy

1.  Five Forces Analysis for GASCO Company:
   
   
   
   
   

   The gas industry is considered profitable, because of the high and comparatively stable demand for gas. It is extremely significant and used in processes, automobiles, and industries. GASCO company can generate revenue through long-term contracts with industrial customers and government entities. Moreover, it plays an important role in our lives because various industries and personal uses depend on natural gas, such as electricity and heating.

   2- GASCO follows a cost leadership strategy. It enables a company to offer competitive prices, increase market penetration, create barriers to entry, improve operational efficiency, achieve profitability, and maintain a sustainable competitive advantage. Moreover, it establishes the business as the market leader in cost-effectiveness, attracting customers, and ensuring long-term success. GASCO focuses on operational effectiveness, cost optimization, and competitive pricing in order to obtain a competitive edge in the market.

    

   

   Addressing the Threats from the Five Forces:

   - Bargaining Power of Customers: Customers will be less inclined to negotiate for lower costs because GASCO can offer competitive pricing according to its cost leadership approach. GASCO prioritizes providing great customer service and fostering deep bonds with them in order to retain customers.

   - Threat of Substitutions: GASCO addresses this threat by promoting the advantages of natural gas usage over alternative energy sources. It highlights how natural gas is a better choice because it is more affordable, sustainable, and reliable.

   - Bargaining Power of Suppliers: GASCO maintains significant relationships with transmission companies and gas suppliers. It looks for several sources and competes for advantageous terms to guarantee a consistent supply at reasonable costs. The cost leadership strategy used by GASCO aids in managing supplier costs effectively.

   - Threat of New Entrants: GASCO benefits from high entry barriers in the gas industry like high capital needs, regulatory obstacles, and the requirement for substantial infrastructure. These barriers provide GASCO a competitive edge by making it difficult for new competitors to engage successfully.

   - Rivalry: GASCO positions itself apart from competitors through its cost leadership strategy by emphasizing cost management, technological investments, and operational efficiency. The company seeks to provide exceptional service quality, applies creative solutions, and pursues strategic alliances to keep a competitive advantage in the market.

   Through adherence to the cost leadership approach, GASCO successfully manages the threats that arise from the five factors within its sector. It positions itself as a major player in Egypt's gas distribution business by utilizing its cost advantage, operational efficiency, and strategic relationships.

   

   GASCO, as a well-known and prominent player in the gas industry, operates through a complex value chain than includes a variety of core activities.  Some of the most important activities include Exploration and production as a Structured process and Supply Chain Management as a dynamic one.  Starting with Exploration and production, it’s a phase that revolves around finding natural gas reservoirs and extracting it. This process starts with conducting seismic surveys to mark potential natural reservoirs beneath the earth’s surface. It utilizes advanced tech to create a map of subsurface geology, marking traces of organic matter that help identify potential drilling areas for the extraction of gas. Once a drilling site has been identified, drilling operations start. This involves careful planning, mobilization of drilling rigs, and execution of drilling operations to reach the gas’s depth. If the well shows promising positive results, production wells are drilled into that well to begin the extraction of gas. Just like oil, gas also needs to undergo the process of removing impurities, usually methane from other hydrocarbons. Transitioning to Supply Chain Management, being effective is crucial to ensure seamless flow of materials, tools equipment, and services needed for the success of the Exploration and Production process. It starts with evaluating suppliers, equipment, materials, and services, and negotiating potential contracts, needed for exploration & production operations. Suppliers are usually selected based on a number of factors which are price, quality, and reliability. Logistics and distribution are vital processes in Supply Chain Management. (For example, transporting natural gas from the dig site to production areas to be refined, then delivering refined gas to the consumer, whomever they may be). This process involves managing transportation routes, managing inventory levels, and coordinating shipments to meet the deadline of a contract or to meet the demand of a consumer. This is done efficiently and effectively when GASCO forecasts the future demand and sets a strategy for this demand.

   
   
   In terms of information systems, GASCO uses a Geographic Information System (GIS) to analyze and interpret any data collected from the seismic surveys as it helps better visualize the subsurface map, such as its geology and potential digging sites, giving better options that help in decision-making in exploration activities. GIS is used to analyze and translate the collected seismic data. By covering the seismic data with geological info, GASCO can identify and mark potential natural gas reservoirs, which can also help in choosing drilling locations more accurately. GIS can also analyze and visualize spatial data related to possible drilling sites, subsurface geology, and environmental factors, and it helps in monitoring natural gas assets which allows GASCO to manage its assets effectively, allowing it to track its performance and plan for future demand.

   GASCO also uses an Enterprise resource planning system (ERP) in Supply chain management to streamline procurement, inventory management, and logistics operations. ERP systems play a crucial role in integrating and managing core business processes across many departments within GASCO. ERP ensures that GASCO always has enough materials and equipment for exploration and production processes. It also enables GASCO to manage its financial departments, giving it the ability to manage budget and revenue, and track costs like expenses and sales. ERP systems are also used to manage GASCO’s human resources, tracking their data and allocating resources effectively.

   
   
   GASCO currently relies on traditional methods for customer inquiries and surveys, which can be time-consuming, full of red tape, and prone to error during data entry, which can lower the quality of the data collected and hinder customer analysis, feedback and overall experience.

   We are proposing a solution for this issue, we believe that developing a mobile app designed specifically for GASCO would improve customer experience and add a competitive edge as well. This user-friendly app would allow customers to submit their feedback conveniently at their own pace, without the need to go anywhere, and surveys can be Pre-Programmed with clear instructions and a skip option, which would allow the customers to answer how they wish, which would minimize errors during data collecting and maximize customer satisfaction. The data collected through the app should be analyzed in real-time to allow GASCO to identify customer's concerns as fast as possible and act on them. The idea of this app would also lower expense costs for both, the customer and GASCO Corp.