U.S. shale gas production has grown rapidly in recent years and has significantly changed the landscape of the energy industry. As more opportunities emerge, new organizations are entering the energy sector at an unprecedented rate. This influx of new competition drives each company to revisit its strategy and identify potential competitive advantages.
One of the more common methods is to streamline operations and work to increase the bottom line through strategic partnerships. Organizations across the industry are outsourcing business processes to cut costs, create efficiencies or remove noncore functions. By partnering with outside providers, these companies can engage experts in a particular area to address certain business needs while allowing management to focus on core competencies.
However, obtaining a competitive advantage through strategic partnerships does not come without risk.