The chief executive officer of SafeBlend Technologies should establish an amount for the firm's environmentally favorable fracturing liquid additive. The company and its largest customer, Bristol Natural Gas is negotiating a fresh contract. Due to limited opposition and competitive negotiation, SafeBlend has become the exclusive supplier of additives to Bristol for the last two years.
New competitors are going into the marketplace, as well as the chief executive officer believes one opponent is prepared to provide Bristol a chemical-free additive less per-gallon than SafeBlend. Expecting bids that are lower from rivals, the CEO contemplates reducing the cost in the contract that is brand new to keep the connection with Bristol-despite the effect on revenue. But the opposition might be unable to provide enough additive to satisfy with all of the requirements in Bristol, therefore the CEO also considers the effect of establishing a a prosperous and more aggressive cost that presumes losing just some of the company in Bristol.
SafeBlend Fracturing case study solution
PUBLICATION DATE: September 23, 2013 PRODUCT #: 914513-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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