The natural resources industry – oil, gas, and mining – is in the midst of a particularly exciting and worrying, but altogether fascinating, period in history. While, on the one hand, oil prices reached the lowest point in years, creating an apprehensive atmosphere for businesses and corporations, on the other hand, newer discoveries of resource-rich areas continued to create opportunities for the sector.
During all the chaos surrounding the industry, small-to-medium businesses and large corporations alike are re-evaluating the approach to their commercial models to better position themselves to secure tenders and bids. Some of the strategies include readjusting priorities and finding ways to cut costs and increase savings. We also need to reconsider some of the requirements of commercial models in order to come up with an improved approach for tendering. However, in order to do that, let us first consider: what exactly is a commercial model?
Commercial models for the natural resources industry
Just like any other business or financial organization, oil and gas companies need commercial models to define their approach to the business to create maximum value. It is a vision. It is a plan. To put it simply, the commercial models of the industry can be seen as: the generation of revenue through extracting, processing, and marketing natural resources or facilitating the process in any way.
However, therein lay a multitude of complexities. The first of these is identifying the components and their function in the business process. Another one concerns creating flexible commercial models that are adaptive to the radical changes the industry is going through at the moment. Yet another is about finding ways to maximize value and increase savings while staying ahead of competitors.
Tendering and commercial models
An integral part of the business model is the company’s approach to securing tenders and bids. It is disconcerting to observe that a lot of companies do not realize the value of including a distinctive approach to securing tenders and bids in their commercial models. To them, it is simply not significant enough.
However, through its extensive experience in dealing with both small businesses and large corporations, Rowe SMG can assist companies in better understanding tendering processes and requirements of a good tender response, leading to a more productive approach to tendering. Thereby, your organization would be able to more successfully integrate an approach to tendering within your commercial or business models.