Identifying New Sources of Productivity and Growth Through a Competitor Analysis Template – A Case Study on the US Energy Industry
Renewable Energy Industry Analysis
The renewable energy industry encompasses a complex, interconnected network of companies that are directly or indirectly involved in the creation and circulation of energy needed to power the economy and facilitate the means of transportation and production. 2018 witnessed a remarkably resilient renewable energy industry that did not fail to gain ground despite uncertainties about the effects of federal tax reform legislation and a spate of new import tariffs.
The key drivers of renewable energy industry’s growth in 2018 are poised to disrupt the energy market in 2019 but we also see three new trends coming into focus that is all set to shape the renewable energy industry landscape this year. It includes:
- The emergence of new tax policy and the US energy policy
- Growing investments ad market expansions
- Advancing technologies
Despite the accelerating growth margins, players in the renewable energy industry are poised to witness a plethora of new challenges in 2019, including those arising due to changes in the US energy policy, technological advancements, and volatile economic markets. Though a skittish economic recovery looms over the US energy industry, experts suggest that the current opportunities in the renewable energy industry will help overcome such challenges. Also, the changing US energy policy will not only transform the way people consume energy but also bring to light the fact that there are no silver bullets when it comes to overcoming such challenges. The main challenge here lies in identifying and capitalizing on the new market opportunities to gain a leading edge in the energy market.
Emerging policies, market expansions, and advancing technologies will underpin the US renewable energy’s growth in 2019. But they pose major threats too! Know what they are by getting in touch with our energy industry experts.
The Business Challenge
The client, a leading player in the US energy market, was finding it difficult to analyze competitive developments such as expansions, business agreements, product launches, and acquisitions in the renewable energy industry space. The energy industry client wanted to leverage Infiniti’s competitor analysis expertise to tactically profile the key players in the renewable energy industry and analyze their growth strategies using a competitor analysis template.
Like the other US industries, the energy industry has shifted its focus from stability to a fluidity as a countermeasure to cope with the ever-increasing challenges. However, our competitor analysis experts suggest that coping with such challenges and exploiting new market opportunities entails adaptation on all fronts. Other strategies include- paying closer attention to the nature of interconnection agreements and regulatory trends in the energy industry.
Solution Offered and the Outcome
Infiniti’s team of competitor analysis consultants set out to solve the energy industry client’s challenges through a competitor analysis template. To do so, they carried out extensive interviews and discussions with several energy market leaders to assess the strengths and weaknesses of peer groups. The competitor analysis experts also amassed data from a wide array of secondary and primary market sources including paid industry databases and industry forums.
By leveraging secondary market information and data obtained from expert interviews, a competitor analysis template was devised, which included detailed company profiles and an analysis of current activities and future energy industry developments. Infiniti’s competitor analysis template helped reveal potential opportunities to enhance the energy industry client’s growth strategies. The template also helped the client to revamp their existing competitor analysis model and transform their approach of identifying customer needs and demands. Besides, the competitor analysis template helped the energy industry client to gain a better understanding of the five forces model in terms of the advent of new services/products, the threat of potential entrants, suppliers, buyers, and the competitors’ strengths and weaknesses.
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Why is it important to know your competitors?
Developing your business requires you to be abreast of the changing energy industry trends to make necessary adjustments to your business strategies. However, you can only grow and improve when you learn in relation to yourself. Therefore, it’s imperative for companies to have competitors and assess their strategies through a competitor analysis template. Learning about your business in relation to the market competition will broaden your knowledge about your target audience and the energy industry as a whole to facilitate business strategy refinements.
A detailed competitor analysis report will help you better understand the audience and communicate with them to distinguish your business from competitors, improve your business processes, and navigate challenges in the energy industry. A detailed competitor analysis template will help you find answers to the following questions:
- What kind of competitors are they?
- How do they position themselves?
- What are your competitors’ pricing strategies?
- What are their strengths and weaknesses?
Finding answers to these questions is of key importance for renewable energy industry leaders who are looking at understanding the positioning, pricing, strengths, and weaknesses of their competitors. The insights gathered from a detailed competitor analysis template will ultimately help enhance your marketing strategies and truly stand out to the target audience.
How do you assess competitors?
In today’s competitive market scenario, to build a successful business one must come up with new products and services that stand out from the competition. But to create those unique offerings within the scope of the energy industry, it’s essential to conduct a detailed energy industry analysis to identify your competitors and analyze what they are bringing to the market.
Below, we bring to you the five basic steps to conduct an energy industry competitor analysis:
Step 1: Identify your competitors within the energy industry space
A competitor is a similar firm that targets the same market segments as you, with the same product/service offering. The different types of competitors can be divided into three types:
- Direct competition: Peer companies that offer the same portfolio of services/products to the same target audience within a certain business territory.
- Indirect competition: Businesses that target a different clientele within the same business space.
- Substitute competition: Companies that offer different products and services to the same clients.
Step 2: Gather information about the key energy industry competitors
Once you’ve identified the type of competition, you will want to gather as much information as possible. You can compile information about your competitors based on their pricing strategies, market reputation, product/service offerings, and positioning and branding strategies through a competitor analysis template.
Step 3: Analyze the competition’s strengths and weaknesses
A detailed analysis of your competitors’ strategies will give you an idea of how you can adjust your own business strategy to counter their strong points and take advantage of their weaknesses.
Step 4: Talk to your competitors directly
Knowing your competitors on a personal front will help you gather the necessary information to differentiate your business in the market.
Step 5: Identify your competitive advantage
A competitive advantage should ideally be able to help you differentiate yourself from other energy industry players and appeal to your clients. Identifying your competitive advantage through a competitor analysis template will help you create a new marketing message and brand image by relying on the key differentiators.
Still skeptic about the potential of competitor analysis? We’ll help you implement a more personalized, industry-specific approach.
Why is the energy industry a major contributor to the global economy?
The energy industry comprises of all firms that closely deal with the production and sale of different forms of energy including the process of extraction, refining, and distribution. The production and consumption of energy play a major role, globally, making it an extremely important part of the global economy. Also, most of the major industrial segments that contribute a huge chunk to the global economy are reliant on energy sources, starting from transportation to the manufacturing of goods.
The energy industry comprises of the following:
- Nuclear power industry
- Clean energy sector
- Renewable energy industry
- Petroleum and gas
- Natural gas
What are energy services?
‘Energy services’ can be defined in different ways. It is a broad term that covers an array of services in the area of energy efficiency, energy management, renewable energy, energy supply, and so on. It even includes energy monitoring, energy audits, execution of energy saving measures, and energy performance contracts. They are referred to as energy service company ESCO or energy contracting (EC), which defines a set of comprehensive energy services offered by companies to projects in buildings or industrial facilities according to optimized project cycle cost.
In today’s rapidly evolving energy marketplace, key business issues are converging with impacts that reverberate across multiple industry sectors. What are the key energy industry trends, challenges, and opportunities that may affect your business in 2019, you ask? Request a FREE Proposal.