How Company Can Use It To Fight For New Opportunities In The Market - 1100 Words

How Company Can Use It To Fight For New Opportunities In The Market (Coursework Sample) Content: STRATEGIC DECISION MAKINGNameCourseInstitutionTutorDateStrategic Decision MakingGood Energy Company is one of the firms that are dominating the market in United Kingdom (UK). It majorly supply electricity from several renewable sources. The company main sources of its electricity is own generated wind and solar energy from farms. They also use independent generators to generate the power from water, wind and sunshine. The main purpose of Good Energy Company is to provide companies and individuals with electricity that causes little or no effects on the environment. This came as there was a big call for companies and individuals to cut on the rate at which they were affecting the climate.The period from the year 2014 to 2017 experienced a great challenge in the gas and oil industry in the United Kingdom. With the unprecedented withdrawal of firms in the gas and oil industry, it is clear that firms are not able to sustain themselves in the industry. Moreover, new firms may also not be able to enter in the troubled industry. This could be as a result of barriers to entering the market. This calls for the need to strategize on how to penetrate into the market with new market opportunities (Chernatony, Daniels and Johnson 2015).Good Energy Company has to analyze critically how it will continue improving its sales in the market. Its market share has been a great advantage in its performance. Nevertheless, the company needs to improve its market entry strategies and even come up with new ones to help it compete favorably well in the UK. With other renewable energy companies in UK coming up, Good Energy Company need to strategize more not to lose its market (Andreu, Claver and Quer 2017). A company like Tonik Energy provide renewable electricity and green gas. Their services are very attractive to new customers and can also result to stiff competition in the market.One of the major challenges is the threat of new entrants into the market. Entry of more firms in the gas and oil industry will bring high competition to Good Energy Company in the UK. The new firm usually tends to capture customer attention as customers think they could have brought into the market new and better products compared to the existing firms (Ensign and Lunney, 2015). Customers end up shifting from their former companies to the new ones if they find good products elsewhere. This will pose a great threat to existing companies and particularly Good Energy Company. The firm will need therefore to keep their services more impressive to the customers. Even when customers explore in the new firms, they will end up coming back to their original sellers. Good Energy Company, therefore, will improve its front office services and its customer approach. This will maintain the existing customers and attract new customers as well.Other renewable energy companies can bring substitutes in the market. Substitutes are goods and services that serve the same purpose but from d ifferent industries. Products from other firms may be serving the same purpose as products from Good Energy Company (Chetty, Ojala and Leppaho 2015). In other cases, products may not be of the same type but meet the same purpose. For example, electricity can be a substitute for gas and oil since it is also a source of power. Substitutes, therefore, provides users with different varieties of products and services to choose from. Where demand is more than supply, buyers will be compelled to find alternative products that serve nearly the same purpose. Conversely, if they find that the substitutes are cheaper and more effective, they might end up shifting to the products instead of the existing products. This may pose a big threat to Good Energy Company. The company, therefore, need to reevaluate its products and services and see whether they can compete favorably well with the available substitutes from different industries. However, if the substitutes are of low standards and high c ost, Good Energy Company will have a high competitive advantage over other firms in and out of the industry.Good Energy Company also needs to strategize on the bargaining power of customers. Customers also have high bargaining power in regards to low prices, high-quality product quick and immediate delivery and other terms of sales such as credit purchase and after-sales service. Customers will tend to find where they can get those services and hence competition increases. Sellers in the market try to satisfy these things to win more customers and retain the existing ones. This competition will be to the advantage of the customer as they will end up getting the best quality at a better price. Good Energy Company will ensure that it has the best of these things and it will end up winning even more customers from less competitive firms. Nevertheless, some factors may lower customer's bargaining power. These factors may include few supplies in the market, the high cost of shifting to different sellers, few substitutes in the market, among others.Supplies can also influence the production cost by adjusting the cost of factors of production and other inputs. Increase in price of the inputs will transpire to a rise in the cost of production. The small firms in the market may be forced out since they may not be able to sustain themselves in the industry. However, there are factors that may reduce the bargaining power of the suppliers (Chen, Kor, Mahoney and Tan 2017). These factors may include the cost of the substitutes in the market if buyers can switch easily to new sellers, among others. Good Energy Company may reposition itself by obtaining factor inputs and other intermediate goods from a more convenient source. Even with high suppliers bargaining power, Good Energy Company will have a high competitive advantage and hence more profit. The company can also strategize by obtaining raw materials from the suppliers in bulk and hence enjoy economies of scale.Compet ition among the existing companies is another force that can reduce the profitability of the Good Energy Company. This high competition level makes a company less attractive to new potential buyers (Eskandari, Miri, Gholami, Reza and Nia 2015). As the rivalry intensifies, the firms tend to come up with more competitive measures to counter the same. This measures that Good Energy Company can use include, use of more improved technology, reduction of the labour force to cut on salaries and wage bill, proper advertising that will bring more customers to buy the products. The company can also employ high product differentiation and better terms of sale compared to its rivals. Good Energy Company being one of the dominating firms in the gas and oil market i...