Degree
Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Advisor
Dr. Rameez Khalid, Assistant Professor, Department of Management
Committee Member 1
Dr. Rameez Khalid, Assistant Professor Business Administration, Institute of Business Administration (IBA), Karachi
Project Type
MBA Research Project
Keywords
https://ir.iba.edu.pk/do/search/?q=Total%20Addressable%20Market&start=0&context=8598587&facet=">Total Addressable Market, Market potential, Rotary equipment, Cost effectiveness, PACRA
Abstract / Summary
The project estimates the Total Addressable Market (TAM) of Rotary Equipment Maintenance Business within the Oil and Gas (O&G), Petrochemical and Process industries in Pakistan, in order to ascertain the market potential and sustainability of this business line by third party service providers.
An extensive study was carried out covering all the major O&G and fertilizer industries of Pakistan. The project was undertaken through field surveys and literature review to ensure it validity. Both qualitative and quantitative research was conducted to strengthen the findings of the project. Besides, Statistical tools were also incorporated during the study to ensure coherence between the obtained results. The study was also evaluated in context of existing economic conditions and government policies to ensure long term sustainability of this model.
Technical rotary data of eight industries was obtained and analyzed in context of the budget estimates and management opinions to ascertain the feasibility of this project. Nine In-depth on-site Interviews were conducted with the industry people to understand the pros and cons of rotary equipment by third party maintenance model.
The study owing to its maiden nature in this business segment in Pakistan holds immense importance. The results obtained in preview of data and literature validated the existence of huge future market potential in Pakistan for third party rotary equipment maintenance. Currently, the market has an in-house maintenance approach for rotary equipment due to technical complexities and absence of third party service provider’s model.
Despite the available market potential, the model still faces many challenges due to the critical nature of the rotary equipment and its cost effectiveness. Strategic decision making is required within and outside industries to make this model a success. Many Key performance indicators such as skill set, cost effectiveness, response time, and geographical complexity are required by third party service providers to engage with industries on strategic levels to address their issues.
Though the project justifies the existence of market potential, extra ordinary measures are required to penetrate and further strengthen the foothold in this business line. Short term actions such as customized services like high wheel balancing which are in high demand should be provided in addition to other services. Besides, acceptance by client to start with non-critical equipment to engage industries on
multiple fronts is also pivotal in the success of this business line. Similarly, long term actions involving construction of maintenance workshops in new industries and targeting economic zones are of strategic importance. Both short term and long term policies will aid in acquiring long term stakes in this business line along developing a business strategy for allocating commensurate time and resources towards this direction.
Recommended Citation
Afzal, F., Naqvi, H. A., Bajwa, M. D., Ali, I., & Ali, W. (2019). Business potential study of maintenance of rotating equipment in process industries in Pakistan (oil & gas, petro chemicals & fertilizer) (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/212
