Premium Essay

Porter Analysis Electricity Industry

In:

Submitted By toyeolat
Words 1719
Pages 7
Regulated Electricity Utility Industry
The electric utility industry generates, transmits and delivers electrical power to consumers, businesses and governments. Today there are three primary business structures in the regulated electrical utility industry—public companies owned by shareholders, municipally owned companies, and those owned and operated by the federal government. Shareholder owned companies are the largest group, providing half of all electricity in the United States.
Burning fossil fuels to power steam turbines produces over half of electricity consumed today.1 Other generation methods include harvesting the power of nuclear reactions to power turbines and, increasingly, renewable methods such as wind or water-powered generation. Unlike most manufactured products electricity cannot be stored, so a complex and delicate fabric of transmission systems (know as the power grid) exists to deliver power when and where it is needed. Many firms involved in the generation of power are also involved in its transmission and sale to end-users, making vertical integration commonplace within the industry. This end-to-end integration, as well as end users’ dependence on electricity, has led to historically strict government control of the industry. The most significant piece of regulation in the last century was known as the Public Utility Holding Company Act of 1935 also known as PUHCA. The act had a profound effect on the regulated electrical industry. First, and most importantly, it set limits on the rates that electricity and natural gas companies could charge payers. Secondly, it restricted the ownership structure of firms involved in the electrical utility industry, preventing non-utilities from owning interest in regulated businesses. Third, it formalized the jurisdiction that federal, through the Securities and Exchange Commission, and state

Similar Documents

Premium Essay

Grameenphone

...1.0 Micro and Macro Analysis Micro Analysis: Micro Analysis is individual study of the factors affecting firms in a specific sector or industry. Micro factors include competition, suppliers, customers, labor and competition. The effect of changes in these factors on the individual decision makers, how their choices are coordinated by markets, and how prices and demand are determined in individual Macro Analysis: Macro Analysis is the study of the behavior of the individual firms or markets. through the analysis of major economic factors that show predictable patterns and trends, and of their influence on one another. Introduction to Grameenphone Grameenphone, widely known as GP, is the leading telecommunications service provider in Bangladesh. With more than 37.7 million subscribers (as of April 2012), Grameenphone is the largest cellular operator in the country. It is a joint venture enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister concern of the internationally acclaimed microfinance organization and community development bank Grameen Bank. Telenor, the largest telecommunications company in Norway, owns 55.8% shares of Grameenphone, Grameen Telecom owns 34.2% and the remaining 10% is publicly held. Grameenphone was the first company to introduce GSM technology in Bangladesh.[5] It also established the first 24-hour Call Center to support its subscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony...

Words: 1995 - Pages: 8

Free Essay

Enbw

...customers. The core activities of EnBW are divided into three business areas: Electricity, Gas, and Energy and Environmental Services. The Electricity area is divided into Electricity generation and trading, and Electricity grid and sales divisions. It generates electricity from nuclear power, hydropower, solar power, geothermal energy and wind power, among others. In the area of electricity generation EnBW is one of the ten largest companies in Europe. In terms of the installed generation capacity as of the end of the fiscal year 2010, it was in eighth place. EDF has by far the largest generation capacities in France. With regard to Germany, EnBW is number three in electricity generation, after E.ON and RWE. Since 2009, EnBW has been involved in a joint venture to expand generation capacities in Turkey, primarily in the area of renewable energies. EnBW is one of the four transmission system operators in Germany and operates various grids in Baden-Württemberg. EnBW’s electricity distribution network has a total length of 162,101 km; the combined length of all of EnBW’s high, medium and low pressure gas grids comes to 17,984 km. In terms of the number of customers and unit sales, the EnBW group is the third largest electricity supplier in Germany. In its home market of Baden-Württemberg, EnBW is the market leader in the B2B and B2C customer groups. The national sales brand Yello supplies electricity to retail and business customers throughout Germany. The Watt brand stands for...

Words: 2310 - Pages: 10

Free Essay

Industry Analysis Global Paper Products

...Porter’s Industry Analysis of the Global Paper and Paper Products Industry BY: Craig I Dworkin Date: March 12th, 2012 Threat of New Entrants Rate of Force: 4 (Moderately - High) 6 Economies of Scale 3 Product Differentiation 6 Capital Requirements 2 Switching Costs 4 Access to Distribution Channels 2 Cost Disadvantage Independent to Size 5 Government Policy The Global Paper and Paper Product Industry are considered to have a high barrier to entry. It is “rather costly, due to the high capital outlay and fixed costs involved in setting up and running production plants.” Economies of scale provide a competitive advantage for larger companies as they are able to increase production in order to reduce cost per unit. New entrants could also be discouraged by increased governmental and environmental regulation. Larger players tend to also control access to distributions and could discourage new entrants from entering. Switching costs are rather simple because there is no uniqueness to the product. “However, entry barriers are lowered by the lack of differentiation within this industry.” Some countries have also introduced economic incentives for the Global Paper and Paper Products market. These incentives could create a favorable investment environment for new entrants. Rivalry Among Existing Firms Rate of Force: 4 (Moderately High) 2 Rate of Industry Growth 1 Product or Service Characteristics 5 Amount of Fixed Costs 6 Capacity ...

Words: 1322 - Pages: 6

Premium Essay

Juwi Analysis

...in the areas of green building and solar electro-mobility. What was originally a two-man operation has grown into a multi-award winning company with 1,750 employees in 15 countries. As there isn´t one specific problem to be solved we chose to apply the Strategy Orientation Analysis. 1.) History, growth & development 1996 the company was founded by Fred Jung and Matthias Willenbacher 1997, the first wind energy plant in Alzey was installed 1999, a business unit for services and technical support was created in order to enlarge the current portfolio, and offer maintenance services for the existing wind mills. Same year, the largest wind-energy park was finalised. 2000, juwi opened the first photovoltaic plant 2004, juwi’s first wind energy park outside Germany was successfully completed.( France) 2007, the construction of the world's biggest photovoltaic power plant. 2.) Internal Strengths & Weaknesses Strengths: * one of most diversified players in the overall market of renewable energy. * Decentralized and therefore independent (producing power in small plants on a local level and by doing so, diminishing the dependence on huge power plants distributing their electricity via high voltage power lines to large regions * Strong focus on local-based value creation as well as a positive investment return (“Profits and values does not contradict each other”). Their vision is affirmed in everything they do. Therefore also their: * Headquarters...

Words: 1280 - Pages: 6

Premium Essay

International Business Environment

...The global group of energy and petrochemical companies is a multinational company with worldwide recognition rodrigo | December 5, 2012 Table of Contents [show] Introduction BACKGROUND OF SHELL Shell, a global group of energy and petrochemical companies is a multinational company with worldwide recognition. Shell is best known for its service stations and for exploring and producing oil and gas on land and at sea. In truth Shell deliver a vast range of energy solutions and petrochemicals to customers, produce and sell petrochemical building blocks to industrial customers on a global scale, invest in making renewable and lower-carbon energy sources, competitive for large scale use. LITERATURE REVIEW Corporate Strategy of shell By being more upstream Shell aims to focus its investments on long term, high return projects to develop oil and gas resources, and grow the companies leading liquefied natural gas business. Downstream profits involves; generating more cash by reshaping integrated oil products and petrochemicals portfolio to enhance operations and focus on growth markets, particularly in Asia. Shell believes that this strategy will improve their business performance and increase their contribution to sustainable development. “Stronger emphasis on our upstream activities and fast growing markets will help us deliver the energy the world needs for economic growth and poverty reduction”. Shell aims to increase focus on producing cleaner burning natural gas, in so doing...

Words: 2633 - Pages: 11

Free Essay

Business Plan Solar Panel Production

... Submitted To Prepared by Letter of Authorization TABLE OF CONTENTS EXECUTIVE SUMMARY 1 CHAPTER 1: INDUSTRY OVERVIEW 2 CHAPTER 2: COMPANY OVERVIEW 5 2.1 Mission Statement 5 2.2 Vision Statement 5 2.3 Key Products & Services 5 2.4 Strategic Goals and Objectives 6 2.5 Management 6 CHAPTER 3: INDUSTRY ANALYSIS 7 3.1 Threat of New Entry 7 3.2 Bargaining Power of Buyer 7 3.3 Bargaining Power of Supplier 8 3.4 Degree of Rivalry 8 3.5 Threat of Substitution 9 3.6 Company’s Core Competencies 9 CHAPTER 4: COMPANY ANALYSIS AND PRODUCTION PLAN 10 4.1 Company Analysis 10 4.1.1 Cost Advantage and the Value Chain 11 4.1.2 Differentiation and the Value Chain 12 4.1.3 Technology and the Value Chain 13 4.1.4 Linkages between Value Chain Activities 14 4.1.5 Analyzing Business Unit Interrelationships 14 4.1.6 Outsourcing Value Chain Activities 15 4.1.7 Existing Core Competencies 15 4.1.8 Future Competencies 16 4.2 Production Plan 17 4.2.1 Product/Service Overview 17 4.2.2 Facilities 17 4.2.3 Products and Manufacturing Process 20 4.2.4 Research and Development 20 4.2.5 Quality Assurance 20 CHAPTER 5: STRATEGIC PLANNING 21 5.1 Marketing Environment Analysis 21 5.2 SWOT Analysis 23 5.3 Competitive Advantage 27 5.4 Additional Strategic Consideration 28 5.5 Strategic Group Analysis 29 CHAPTER 6: MARKETING PLAN 31 6.1 Market overview 31 6.1.1 Potential Customer 31 6.1.2 Size and Growth...

Words: 11562 - Pages: 47

Premium Essay

Ge Wind Strategy Case Study

...Strategy and Global Business Policy - GE Wind Strategy Study - Date turned in: 05.01.2014 For: BI Norwegian Business School-Fudan University MBA Programme 05.01.2014 Content Table  of  Contents   Content  ............................................................................................................................  i   Introduction  ..................................................................................................................  ii   1.   Industry  Analysis  ................................................................................................  1   2.   Competitive  Analysis  .........................................................................................  4   3.   Value  chain  analysis  ...........................................................................................  7   4.   Strategy  core  analysis  ........................................................................................  8   5.   Advantages  and  disadvantages  ......................................................................  9   6.   Conclusion  ..........................................................................................................  10   7.   Reference  ............................................................................................................  11   ...

Words: 4576 - Pages: 19

Premium Essay

It as a Competitive Advantage

...Advantage Marcus Liubakka The College of Saint Scholastica Introduction In 2003, Nicholas Carr, published a controversial article titled “IT Doesn’t Matter”. The premise of his article defines IT as a digital data infrastructure, and compares its build-out to previous impactful infrastructure build-outs like electricity and the railroad. Carr claims that IT has become a commodity, and businesses can no longer use their IT as a competitive advantage. This paper will further analyze Carr’s article, and make recommendations as to how businesses can leverage IT as a competitive advantage for the future. Analysis Rationale To fully understand how a business can leverage IT as a competitive advantage, one must fully understand the concept. In short, a business has a competitive advantage if it has the ability to provide an added value to its customers that its competitors cannot. A competitive advantage is also obtained by providing a value to a customer equal to its competitors, but with a lower cost. There are many factors which play into achieving a competitive advantage, however, organizations need to focus on sustainable competitive advantages. “In his book Competitive Advantage, Porter claims the ‘fundamental basis of above-average performance in the long run is sustainable competitive advantage’” (Pearlson & Saunders, 2013, p. 28). A sustainable competitive advantage is predicated on successfully creating barriers to erosion (Piccoli & Ives, 2005). The strength of these barriers...

Words: 1855 - Pages: 8

Premium Essay

Bus 499

...Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://blogs.ft.com/energy-source/2010/03/02/bps-strategy-presentation-growth-cost-cuts-biofuels-ma-and-more/#ixzz3AHpONpiH Overall, the theme from Tony Hayward, the CEO, is that BP has great assets, in part thanks to the deals of the past decade, such as the takeovers of Amoco and Arco and the creation of TNK-BP, but is still not managing them as well as it could. Having lagged well behind the pack of oil majors when Hayward took over, as measured by return on capital, BP is now about average, but it would like to get closer to the leader, Exxon. That is the context for all the plans B The key points of that plan are: 1. $3bn to be saved through cost-cutting and efficiency improvements over the next 2-3 years. 2. Roughly $2bn from refining, putting the emphasis on efficient operations rather than just getting the refineries running, which has been the priority. A further $1bn from better project management, resulting from the creation of a new global development unit...

Words: 1759 - Pages: 8

Premium Essay

Bp Deepwater Horizon Accident

...BP Deepwater Horizon Accident Part 1(week 4) A Study of Strategic Implications of the Recent BP Deepwater Horizon Accident Date: Submitted by: Mohamed Ahmed Mohamed Student ID Number: H00032634 Chapter 1 Introduction History of British Petroleum (BP) Company British Petroleum is one of the oldest companies in the oil industry. According to BP Global (2010b), the company was founded in the year 1909 in the UK under the name Anglo-Persian Company. Later, in the year 1954, the company changed its name to British Petroleum (BP). Being in the gas and oil industry, BP conducts various operations including exploration and refining of oil among others. According to BP Global (2010), Bp is the largest energy company globally with presence in over 100 countries. Overview of the Deepwater Horizon Accident In the year 2010, BP experienced a Deepwater Horizon oil spill disaster which involved gas release and subsequent explosion in the Gulf of Mexico. According to Webb (2010), the fire lasted for 36 hours and this was followed by leaking of hydrocarbon into the Gulf for eighty-seven days. BP admitted responsibility explaining that the accident occurred following loss of control related to pressure within the well blowouts in which a special type of is designed to keep constant pressure. Impacts of the Deepwater Horizon accident This tragedy impacted immensely on various BP stakeholders i.e. local communities, global customers...

Words: 2865 - Pages: 12

Premium Essay

The Future of Energy: Rooftop Solar Panels

...The Future of Energy: Rooftop Solar Panels Coal fired energy plants have long been recognized as extremely damaging to the environment. The role of carbon dioxide, a greenhouse gas, in precipitating climate change is well documented. Carbon-dioxide emissions have increased manifold since the Industrial Revolution and have led to an increase in the Earth’s temperature in the past 50 years, worsening forest fires, drought and coastal flooding among other disastrous side effects of climate change, according to the U.S. Global Change Research Program. (NOAA National Climatic Data Center). In Kentucky where 91% of its power is generated from coal (Department for Energy Development and Independence; Kentucky Coal Association), there is a great impetus for utilities to cut down on carbon emissions. Unfortunately current efforts to reduce carbon emissions are largely insufficient because they do not attempt to reduce America’s and Kentucky’s overreliance on fossil fuels such as coal and natural gas. Rather, currently adopted technologies like carbon capture and storage (CCS) and natural gas-fired plants that halve carbon emissions merely seek to reduce the environmental impact while still relying on fossil fuels for energy. (Nijhuis) (Breeze) For a solution to be viable in the long run, it must propose an alternative energy source to reduce our reliance on fossil fuels for energy which is the root cause of excessive carbon emissions. Investing in renewable energy like solar power is...

Words: 2947 - Pages: 12

Free Essay

Marketing

...UNIVERSITY NAME Assignment Title Marketing STUDENT NAME 3/8/2012   Executive summary Hidden Valley Cabins and Tours is an award winning solar power user which runs their resort fully by solar power. They have a solar power plant of their own and this plant provides them with their essential electricity. This electricity and power is cheaper to them than the fossil energies. The price of fossil energy is increasing day by day. But expense for solar energy is not increasing. So, this helps their economically also. This solar power plant is very much eco-friendly and helps them to reduce the emission of carbon at a high rate. Hidden Valley Cabins and Tours are creating the example for the people that solar energy are very eco-friendly and they can be used for large facilities also. Contents Executive summary 1 Introduction 3 Purpose of the report 4 Findings 5 Conclusion 10 Recommendations 11 References 12 Introduction Solar power energy is one of the most discussed issues now a day. The whole world is experincing a crisis for the fossil energy. The day is not so far when all the available energy will be ended. So, the quest for an alternative source of energy was going by many people. As a result of this quest the solar power energy technology has been invented and this energy source is becoming more and more popular day by day. But there are only a few examples around the world and even in...

Words: 1682 - Pages: 7

Premium Essay

Thaipolyester

...ETUDE DE CAS Thai Polyester Company I. A. Identity of the French firm - This firm has a very big success in France: it’s one of the largest chemical groups in France. - The sector of activities is the following: basic chemicals, fine chemicals, pharmaceuticals, textiles, agro-chemicals and fibers). - This firm is used to deal with foreign partners: half of the turnover came from export and foreign subsidiaries especially with the northern hemisphere and Latin America. - The organization is not the best: the group gives autonomy to divisions which were separate legal corporate entities. - The new sector will be the following : manufacturing and marketing of polyester staples and threads I. B. Identity of the Thai firm by Mr Yipsoon - Mr Yipsoon knows very well the Chinese culture because he has Chinese origins. That could be a good point if the firm will have partnership with China in the future. - Mr Yipsoon is one of the few textile magnates in Thailand. He has a very big impact in Thailand in the world of the textile and he knows lot about that branch and the type of management in that branch. - He is used to deal with foreign partners and so he knows the culture of each one and so can deal with them more properly. - The group controls 40% of the Thai market. He has a big impact in this region. - He can not speak English. - He is a good manager. II. Problematic: Is that joint-venture...

Words: 2858 - Pages: 12

Premium Essay

Clean Energy Markets: Jobs and Opportunities

...nature of future global climate agreements. Annual investments in global renewable energy markets could reach $106-$230 billion a year in 2020 and as much as $424 billion a year in 2030 (in year 2000 dollars). Over the next decade, assuming strong global action on climate change, cumulative global investment totals for clean power generation technologies could reach nearly $2.2 trillion. Recognizing the potential of these markets, China, Europe, and other nations are moving to cultivate their own clean energy industries and position them to gain large market shares in the decades ahead. In 2009, China invested more money in clean energy technologies than the United States for the first time, and Europe continued to lead the world in clean energy investments, spending over $41 billion. Nearly 90 percent of today’s market for clean energy technologies is outside of the United States, primarily in Asia and Europe. China now boasts the world’s largest solar panel manufacturing industry – which exports about 95 percent of its...

Words: 10639 - Pages: 43

Premium Essay

Renewable Energy

...hotmail2008 Table of Contents Executive Summary 2 Introduction 3 Wind Energy Data 5 Analysis 6 Conclusion 8 Bibliography 9 Executive Summary The majority of our nation’s energy is highly dependent on finite fossil energy sources, like coal and oil. Using fossil fuels to create electricity creates emissions that are both harmful to the environment and our health. Renewable energy sources provide a clean and viable long term alternative to fossil fuels. Renewable energy is energy generated by natural resources in the form of solar, wind, geothermal, hydroelectric, and tidal waves. Among the diversity of renewable energy, wind energy is the fastest growing power technology in the world. According to the U.S. government Energy Information Administration, the production of wind energy will be at least 20% by the year 2030. This report will prove the validity of this statement by using hypothesis analysis. Hypothesis analysis will reject the null hypothesis that wind energy production will be less then 20% in favor of the alternate hypothesis that states wind energy production will be at least 20% or greater. Introduction The majority of our nation’s energy is produced from the burning of fossil fuels, like coal, oil, and natural gas. Life as we know it and our economy revolves around these finite resources. Unfortunately, with our great demand for energy, especially gasoline, world production of oil has already reached its maximum capacity and seems to...

Words: 1694 - Pages: 7