A New Company Called OilMasters Makes and Sells Oil-Drilling Equipment

question 40

Essay

A new company called OilMasters makes and sells oil-drilling equipment such as pumpjacks. The pumpjack is an essential part of drilling operations, and customers need the equipment to be operational at all times. What would be a typical pattern for OilMasters to develop a postsale service strategy?

---

Definitions:

Sells Assets

Involves the process of disposing of or selling off physical or intangible assets by a company or individual.

Vertical Integration

The expansion of a business by acquiring or establishing control over different stages of its production or distribution processes.

Acquires Suppliers

The process where a company takes ownership of its suppliers to control the supply chain or reduce production costs.

Acquires Distributors

The process by which a company purchases or assumes control over distribution firms to streamline its supply chain and improve market access.