Business Plan to Sell Oil Rigs in MENA Region Essay

Business Plan to Sell Oil Rigs in MENA Region - Essay Example However, the success rate of a new business is expected remain high, if entrepreneurs is able to develop a realistic and achievable business plan by analysing and assessing the associated risk and by framing a set of effective and plausible strategies. This paper will present a brief business that will include product and company features, market and cost analysis with project timeline of the start up business. 2. Product Feature and its Advtantage The product is the start business is the oil rig machines which are basically a drilling machine to explore the underground oil and natural gas. These machines are huge in size that creates hole within the Earth. Oil rigs are installed and used at site where oil is supposed o deposited under the ground. Generally, the oil rigging machines are available in different sizes run by any of the one power system i.e. diesel engines or electrical generators. The oil rig offered by the new start up venture will be very help for the oil exploring co mpanies as it will be able to run on both types of power system in accordance to the available resources. Besides, its new technology used for rotation system and for circulation system will be very cost effective as installation cost will be very low and will be quite productive in term of its cost including its maintenance cost and power cost. 3. Company Description and Formation The name of the new start up company is OilTech Pvt. Ltd and it will be engaged in the manufacturing and selling of the newly develop oil rigging machines. Primarily, OilTech will be based in MENA region and will also be situated in this region as a large number of buyers will be available in this region. OilTech Pvt. Ltd will be formed by joint venture with an existing engineering company who is engaged in manufacturing of the heavy engineering products. OilTech and engineering-based company will have 40% stake each and rest 20% of the capital will obtained through loans from banks or other sources. Cert ain amount of loan will be very helpful in tax benefits and higher return on equity. Joint venture with engineering-based company will very helpful for the OilTech as it will be able to use the technological expertise. 4. Market Analysis and Target Market MENA region includes the Middle East and North African countries and these countries are highly enriched with mineral oils and gas. The most of these countries are oil-based economies and hence, a large of buyer of oil rigging machines will be available. However, market competition this region is expected to remain high as a number of oil drilling company companies and seller of oil drilling or rigging are present. Moreover, many oil and natural gas producer companies buys the oil drilling machines from the other countries like China, Germany, U.S. etc. Some of the potential and key competitors for OilTech are Allegheny Crane, Focus Oil Tools, Korea National Oil Corp, Parker Drilling, Proforma Safety LLC etc. These competitors also offer services for oil drilling and maintenance services to the oil exploring companies (Rigzone, â€Å"Website Listings†). OilTech is newly formed company and hence, it will enter in the market by targeting the small oil and gas producing companies. Considering the features of the product offered by OilTech will be low cost and will also incurs lower maintenance cost that strives to add value to profitability and efficiency. With the increasing demand of the oil and gas in the World economy, the demand of the oil drilling