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Helping pipe energy to the world's shores Return Home // Table of Contents |
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Offshore Joint Services' founders knew from the start—almost 20 years ago—that their business neighborhood was the world. Today, co-founders Paul Pool and William Gowan, and their OJS staff have made the company a global leader in its field in the oil and gas industry.
On installation vessels, OJS applies the protection and coating to the joints that connect the pipes. Those joint coatings include joint infill, corrosion protecting coating and thermal insulation. Dennis Lee, Vice President of Marketing at OJS, says the nature of the offshore oil and gas industry makes the company's worldwide presence essential. Although based in Houston, OJS reaches far outside the U.S. borders. In recent years, OJS has been involved in projects in the Gulf of Mexico, Black Sea, Persian Gulf and North Sea, and off the shores of Argentina, Brunei, Ecuador, Egypt, India, Indonesia, Korea, Malaysia and the North Sea. Operating in so many countries and regions poses challenges familiar to any company conducting business beyond the United States—cultural differences, varying regulatory and taxing structures, etc. Lee says OJS uses a trigger question when considering a new territory: "How do we launch successfully into that area and differentiate?" "The answers have been heavily influenced by the OJS representative in that area," Lee explains. The OJS representative is the staff person or company in that region who has been recruited or contracted to the company to serve as its agent. Finding the right person for that critical representative role is essential, Lee says. He explains that two or three competitors can begin operations in the same area with similar circumstances, pricing, etc., yet one outshines the others' performance. "The difference is heavily influenced by the representative," he notes. Before OJS even hires its staff member or agent, company executives travel to the new area, establish references and conduct market research. They also ask potential clients whom they would recommend as an OJS representative.
"For example, the same international oil company might operate in Houston, Aberdeen, Jakarta (Indonesia) and Egypt, but each location has different ways of doing business," Lee explains. When working with the indigenous companies, the differences of doing business are only heightened, he adds. OJS offers its clients a sophisticated, technological process—something that businesses in newly developing countries are more resistant to consider. They rely on historical industry practices, Lee says. "You have to get across that things have moved on, change can be beneficial and better products are available," he explains. Though it offers prospective clients at any locale the relatively same process and product attributes, OJS knows it cannot use the same selling system for all locations. "How the message comes across is what we can differentiate," Lee says. Communication, though, can pose its own challenges. Lee recently was in China—a new territory for OJS. Armed with a Powerpoint presentation, he faced a room with more than two dozen people, almost none of whom spoke English. "On each slide, I would speak, and then have to wait for the translator to communicate to the group," he says. Lee had to take into account that immediate audience feedback, both verbal and nonverbal, was not possible. Tailoring OJS' style to the audience—no matter the country—has been effective. Lee says that successful business models have been implemented in Egypt, South Korea, Malaysia, Middle East and Paris, the latter being home to the oil and gas industry operating in West Africa,. "It is obvious, but some people don't do it. We ask, 'what does the client want' and tailor our supply model accordingly?" he says. Developing a response to that answer can happen quickly because OJS is a private company with a responsive board who can proceed quickly. "Good representatives and flexibility," Lee says, are the keys to OJS' proven international business model. For more information visit www.ojs.com. e Offshore Joint Services is a client of Leading Edge accounting firm PKF Texas. The firm has provided the company with tax compliance, both international and domestic tax consulting services, in addition to consultation and assistance in various accounting and assurance matters. |
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