Case Study DQs - HBS Case 9-914-513 SafeBlend Fracturing...

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HBS Case 9-914-513: SafeBlend Fracturing Preparation Questions: • What decision does John Dudley face in 2011? What actions did Dudley and SafeBlend take – or not take – that led them to this point? The decision John Dudley faced in 2011 is to bid 50% less price to BNG in order to compete with FloatWise’s offer. It was a matter of time until another supplier would try to bid for BNG’s business. I think SafeBlend took all the right steps so far in building their business, relationship, and competency with BNG. SafeBlend was innovative in developing an organic citrus based fracturing fluid additive. The main feature was the fact it was environmentally friendly because it contained no environmentally harmful chemicals. The inorganic materials being used before this was developed was harmful and created risks for surrounding residents and businesses. BNG was peering down a dark hole of litigation due to lawsuits from affected people near the fracking. The fracturing fluid was getting into the water and creating problems such as people able to set their faucets on fire due to the chemicals in their water. BNG needed to spend the money to find a better way to do their business process, so SafeBlend created a product to serve their need. The way John Dudley negotiated not only BNG’s business, but AOG’s as well was bold but successful, at least short term. He got investment from both companies into non-recoverable expansion and start up costs. By working together with BNG’s engineer, it created a good relationship professionally and personally. SafeBlend proved to be competent and reliable. I don’t think SafeBlend made any blinding mistakes; it’s a given that other suppliers were going to try to bid them out for business. SafeBlend now needs to remind BNG and AOG why they chose SafeBlend to start. SafeBlend needs to retell the rigorous, monumental, success story to BNG in order to persuade them to stick with their wise choice in supplier. If I was John Dudley, my story would go something like this: “When I think about our valuable rapport that we have built, three key words come to mind: belong, believe, and be. The first term belong is a feeling I have felt since
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we started to co-develop this product with you. Through every step, small or large, this relationship gives me chills. This sense of belonging surges through my body because something is telling me this is where both our companies belong – in a state of mutual success. With this keystone of mutual benefit, I believe we can continue to grow your company and help you become the market leader in this niche. Finally, to be, is to not fix what isn’t broken. Our business plan has been working wonderfully. Are you willing to risk everything we built for a company they may not service your needs like we can. You need a competent, dependable, and reliable supplier in order for you to stay competitive. Other companies may be offering you extreme price cuts, but a lower price usually means lower quality. You have already faced litigation. Do you want to back track to being those situations again? Also, you have invested so
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  • Spring '14
  • LawrenceKleiman
  • Marketing, BNG

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