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Discussion Questions for the SafeBlend Fracturing Case
For this case, please write your report taking the perspective of an outside consultant who is evaluating the company and recommending the appropriate actions to its managers.
Question 1. What decision does John Dudley face in September 2011? What actions did Dudley and SafeBlend take - or not take - that led them to this point?
Question 2. Describe SafeBlend's 2010 pricing strategy. Will that same strategy work in September 2011? What other pricing strategies might Dudley choose to employ?
Question 3. Describe the nature of the sourcing teams (or "buying centers", those responsible for purchasing SafeBlend's fracturing fluid) at BNG and AOG. Who are the key members of the teams? Who wields the most/ least power? How might SafeBlend leverage its relationships with individuals at BNG and AOG to sustain their status as sole and/or primary suppliers?
Question 4. What price should SafeBlend charge BNG in 2012 after hearing about AOG's proposed contract price and percentage of business secured?
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