Background and Challenge

The client is a leading industrial products OEM whose energy business unit comprises two companies that have historically operated as independent entities. In the context of growing demand for artificial lift technologies driven by development of unconventional oil and gas reserves, the client’s independent energy companies may not be able to fully capitalize on artificial lift opportunities as isolated entities.

Consequently, the client believes that there may be an opportunity to develop an integrated artificial lift strategy for exploiting the group’s existing capabilities and is also considering international expansion. The company enlisted L.E.K. Consulting to assess the global artificial lift market and to analyze the potential benefits and risks associated with developing an integrated artificial lift strategy.

Approach and Recommendations

We developed an actionable strategic roadmap with quantified expected outcomes. Key components of our approach include:

  • Rigorous analysis of the economic drivers and current market conditions to build a robust view of the market’s size and growth by product and region
  • Extensive in-depth interviews with domestic and international customers (e.g., engineering, procurement and construction firms, national oil companies, international oil companies) to gain insights into purchasing behaviors and criteria across artificial lift product lines and regions (including North America, the Middle East, Eastern Europe and South America)
  • Primary and secondary research to determine competitive dynamics and competitor strategies and tactics
  • Identification of high-priority opportunities based on market attractiveness, customer needs/requirements, potential competitive intensity and ability to create value for the client’s business unit as a whole
  • Establishment of high-level business plans for implementing the recommended initiatives, including implementation costs, resource plans, milestones and potential acquisition candidates


We prioritized four growth initiatives that will allow the client to expand across the most attractive product categories and geographic regions and developed actionable strategic roadmaps for each initiative. The client acted on our recommendation to develop an integrated go-to-market approach, and the business is now growing at a double-digit rate.

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