Strategic Group Mapping Essay

1503 words - 7 pages

Strategic Group Mapping
According to Michael Porter whom developed the concept of a “strategic group” it is used in strategic management in order to group companies within an industry which share similar business models or combinations of strategies. The concept’s main focus is to aid in identifying direct competitors and how they directly compete with the firm. Strategic mapping can also be used to identify opportunities. In 2006, China’s government enacted a renewable energy law with a goal of directly supporting the growth of clean energy companies (Bradsher 2010). Companies that fall within the strategic group along with NRG Energy includes Camco International, Canadian Solar, Inc. ...view middle of the document...

Also in China, the Shanghai Power Transmission and Distribution Joint Stock Company entered into a joint venture agreement with Canada’s Xantrex Technology, Inc, to build a factory to design, manufacture and sell solar and wind power electric and gas electronics products (Bradsher 2010).

Mobility Barriers
Renewable energy technologies have an extremely high potential in China and that potential can be realized at a reasonable cost. Market research has proven that a reasonable number of consumers will acquire renewable power although the costs are somewhat higher than conventional power (Farhar 1996). However, economic concerns and even experience suggest significant market barriers and market failures that will hinder the development of the renewable energy industry in China and globally. There are four main barriers to the renewable industry in China which are (1) commercialization barriers caused by innovation to an old technology, (2) price differences resulting from established subsidies as well as unequal tax charges between renewable energy and other energy sources, (3) the limiting of the market compared to the value the population will benefit from renewable energy, and (4) market barriers such as miscommunication, lack of resources for consumers, and high transaction costs for making small purchases (Harrison 2009).
As far as commercialization barriers, there are two major barriers that would affect NRG Energy in China. First there is an issue of undeveloped infrastructure. 
In order to develop renewable energy resources, the company will require large initial investments to construct the proper infrastructure (Harrison 2009). Of course, these investments will increase the cost of providing renewable electricity to consumers, especially during early years in China. The second major barrier within commercialization barriers would be a lack of economies of scale. According to Merriam-Webster Dictionary, economies of scale are defined as the increase in efficiency of production as the number of goods being produced increases. While in the manufacturing stage, most renewable energy technologies are developed on assembly lines, where mass production can highly reduce costs (Jacobsson 2000). Also, economies of scale are certain to lead to cost reductions for wind, fuel cell, and biomass technologies (Porter 1996). Unfortunately since renewable fuel is such a relatively new industry to not only China but the world, as long as demand requires relatively few units to be produced, prices will remain high. This cause and effect situation will lead to low demand, and therefore low production volumes (Jacobsson 2000).
NRG Energy will face a major barrier in China considering the unequal government subsidies and taxes compared with nuclear and fossil fuel technologies, which already occupy a relatively high advantage in government funds for research and development (Porter 1996). According to a study conducted by the Energy Information...

Other Essays Like Strategic Group Mapping

Fewafawefawfwaef Essay

5691 words - 23 pages Model of Competition to the Industry and how the concept of the value-net has modified this analysisApply the concept of strategic group mapping to further clarify competition within an industryApply ethical reasoning and ethical principles in gathering competitive intelligence in this phase of the strategic management processLearning Activities:Read:Chapter 2: Analyzing the External Environment of the FirmAssignment:Conduct External Environment

Materials Management Proposal Essay

1080 words - 5 pages capacity and providing effective and efficient flows of products and services. This proposal will address effects of and justification for the planning process, constraints in the supply chain, and handling supplies during times of disaster. The Planning Process To achieve operational excellence at this facility, a strategy will be created through careful operational planning. Operational planning involves mapping the external opportunities

Project Roles and Responsibilities

1180 words - 5 pages organization as a whole. Makes key organisation/commercial decisions for the project. Assures availability of essential project resources. Approves the budget and decides tolerances. Leads the Project Board. Ultimate authority and responsibility for the project. Role This group, normally containing management grade personnel, is responsible for overseeing the progress of the project and reacting to any strategic problems. The group is optional

Establishing a Workforce Plan for a Proposed Integrated Health and Social Care Service in a North London Borough

2222 words - 9 pages organization has given consent for the project to go ahead. | September 2014. | 2. Mapping Service Change | Service reconfiguration to be matched with changes to workforce. Drivers to be identified and analysed using PESTLE/ SWOT analysis. By focus group. | November 2014 | 3. Defining the required workforce | Analysis the future needs and by a focused group management team and service managers | November/December 2014 | 4. Understanding

Rightsizing

2372 words - 10 pages downsizing, the result is the same since positions will be eliminated. They are either looking or going to look at every group in the entire corporation to evaluate processes, consolidate groups, and eliminate positions. When an employee is hired by a financial institution, they must go through the process of being finger printed and background verification. My employer has begun separating the chaff from the wheat by having every employee go

Strategic Leadership

2978 words - 12 pages strategic partners rather than obstacles. To improve your ability to align: Communicate early and often to combat the two most common complaints in organizations: “No one ever asked me” and “No one ever told me.” Identify key internal and external stakeholders, mapping their positions on your initiative and pinpointing any misalignment of interests. Look for hidden agendas and coalitions. Use structured and facilitated conversations to expose

STR 581 Week 6 Capstone Final Exam

1813 words - 8 pages affect a firm's strategic actions are__________. • economic, political, and legal • industry, business, and product • local, national, and global • general, industry, and competitor 6. The proper matching of what a firm can do with what a firm might do__________. • balances the internal characteristics of the firm with the characteristics of the external environment • overcomes the rigidity and inertia resulting from a history of

Review of Starbucks as a Business Organization

5809 words - 24 pages strategic planning in your chosen organization Starbucks identifies the major ideal issues involved as protection of coffee gardeners to achieve future supply, keep the brand picture and remain impressive, new market technique, authority and lifestyle (Winer and Dhar, 2010). 1.3 Select two different planning techniques which you could apply to your chosen organization Planning is a critical issue for every organization, so every organization want

Team Dynamics

1772 words - 8 pages TEAM DYNAMICS A team is any group of people organized to work together interdependently and cooperatively to meet the needs of their customers by accomplishing a purpose and goals. Teams are created for both long term and short term interaction. A product development team, an executive leadership team, and a departmental team are long lasting planning and operational groups. Short term teams might include a team to to plan the annual company

Benchmarking Concepts

3006 words - 13 pages similar operations within your own organization • Competitive – Comparisons among competitors for a specific product • Functional – Comparisons to similar functions within the same industry • Generic – Comparisons of processes independent of industry or overall functions E&S Tucson - November 1999 “Benchtrending” • The latest approach to benchmarking • Continuous monitoring of specific process performance with a select group

A Global Competence Management System

1724 words - 7 pages . However, it was concluded that exceptionally the implementation processes have to be changed. The executives have set up new strategic targets and called it “Vision 2015”. For 2015 the executive board is determined to reach a customer satisfaction value of 90%, sales of 8 billion CHF, a profit of 800 million CHF and an increase to 30.000 employees.[1] The “Vision 2015” foresees a rapid growth, which could lead to big changes in strategic

Related Papers

Information System Essay

570 words - 3 pages Executive summary Strategic options development and analysis and Cognitive mapping can be used for a variety of purpose for solving problems through structure, analysing and making sense of accounts of problems. Nowadays these become more and more important tool for decision making. This report will do a research for the SODA/Cognitive mapping from theory, advantages, disadvantages, application and the range of applicability. And as well, the

Facility Planning I Essay

764 words - 4 pages Minnesota, called Redwood Area Hospital Outpatient Center. This paper will describe the community or facility need of the building, the people the facility serve, and the description of the facility. Community or Facility Need of the Building There is a need for strategic planning within any business or healthcare organization. The planning should consist of mapping out the objective, idea and purpose for the project. The renovation or expansion

How To Win Essay

1003 words - 5 pages on completion and profitability as a result. An integral part of analysing an industry’s competitive structure is understanding which firms are strongly and weakly positioned. Strategic group mapping is the best way to visualise market positions of industry competitors. A strategic group is a cluster of industry rivals that have similar competitive approaches and market positions. To construct a group map you identify the competitive

Art Of War And Risk Management

770 words - 4 pages Universidad Autónoma de Nuevo León Facultad de Contaduría Pública y Administración International Business Program Finance VI Assignment: The Art of War by Sun Tzu & Risk Management Roberto Mauricio Sandoval Salazar Group: 8Vi ID: 1568794 Teacher: Eduardo Treviño Ciudad Universitaria de Nuevo León, February 28th, 201 The Art of War by Sun Tzu & Risk Management “If you know the enemy and know yourself, you need not fear