02 Nov 2017
This report is presented to the Chief Executive Officer of ENERGY VIBE INC by Priya Subramaniam. This report is based on the feasibility study conducted on renewable energy in Australia. ENERGY VIBE INC (hereafter called as ‘The Company’) is involved in designing and developing solar energy systems an products.
This report describes the Vision and Mission statement, in which will clearly define the direction of this company in current and future path. It will include the introduction to ‘green’ technology and discuss the importance of ‘green’ technology and how Energy Vibe Inc can contribute to this technology by helping in reducing the world carbon foot print. The company goal will take us to the focus of the organisation toward their stakeholders.
In the next segment of the report, an analysis will be layout defining the macro and micro factors that would have direct and indirect contribution on Energy Vibe Inc. The macro factors include the political, economical, social, technology, environmental and legal point of view. The micro analysis will be based on market analysis, competitors, target market i.e. customer and stakeholder.
Then final segment of the report will analyse the factors that contributes to the success of the company in long term which includes the developing strong relationship with customer, positioning the premises in a strategy infrastructure and location, identification of right supplier, building brand reputation, developing marketing strategy and education future generation on energy efficiency.
The 21st century is about cultivating ‘‘green’’ environment, as global warming has become one of the potential threats to the worldwide national security, economic, and environmental. These including migrations, resource shortages, environmental disruption and extinction of animals, changes in agricultural patterns, staggering economic and human losses from extreme weather events, and the spread of deadly diseases (World Climate Change, n.d.). The prospect or success has never been greater for ‘‘green’’ environment policy. A genesis era of creativity and innovation in ‘green’ technology" (also known as "clean technology") is bringing promises for a healthier planet and healthier lifestyle, as well as the prospect of growing businesses that can sustain the health of the company and the health of the environment.
Government bodies and individual citizens are no longer assuming that social challenges like pollution, decline in natural resources and climate change are to be tackled by future generation.
Building a ‘‘green’’ future plays a central role in government policies, research, education, incentives and building relationship with community to community. Corporate industry are not taking a sit back in this either, they are now largely involved in maintaining and sustaining the environment by building relationship with government and individual citizens in enforce the policy in the corporate guideline and standard.
Due to the rising energy costs, Energy Vibe Inc has vouched to help to create a sustainability product in effort to cultivate the importance of ‘‘green’’ technology. With headquarter in Queensland; Energy Vibe Inc is ideally situated to stay on the leading edge of the complexity and mounting demands from customers to develop energy efficient, environmentally responsible products.
Energy Vibe Inc will set the precedent in energy efficient product throughout research and development, continuous process improvement, exceptional high quality product and services and enhance customer satisfaction by providing low cost environmentally friendly and innovative form of electrical energy to local and global consumers though highly efficient and cost effective energy generating systems.
Energy Vibe Inc was founded under the guiding principles of reducing and eliminating our dependency on foreign energy. The primary mission for Energy Vibe Inc is to sustain, and improve the lives of our customers and help meet the basic needs of human comforts with providing energy efficient products.
Energy Vibe Inc believes that companies and individuals should feel they have the ability to set their own priorities when it comes to the energy conservation, efficiency and or the ‘green’ movement and that will keep them safe in their homes and businesses.
Energy Vibe Inc priority is to help our customer in making the important decisions in an increasingly complex and evolving energy marketplace.
Product Efficiency
Energy Vibe Inc will be the pioneer in designing the most cost effective, highly efficient solar powered systems or private and public use
Expand knowledge of solar energy product
Energy Vibe Inc want to educate and expand the knowledge of importance and significant of untapped, pollution-free fuel source to consumer.
Respect and Responsibility
Respect for our fellow employees, customers and suppliers while showing willingness to solicit their opinions and value their feedback.
Product Branding
We believe branding is a very important tool in determining the direction of an organisation, therefore Energy Vibe Inc want to ensure the goodwill and the branding of our product are the highest standard.
February 19 2010, the Australian Government announced that the Renewable Energy Bonus Scheme will assist households on power bills and reduce carbon emissions. This new Scheme was implemented to replace the Home Insulation Program. The objective of this Scheme is to encourage the households to improve in using the energy and water efficiently, reduce the ‘green’ house gas emission without enforcing financial burden on households by allowing government rebate. This will allow general consumer to consider the usage of renewable and environmentally friendly energy.
The Gross Domestic Product (GDP) in Australia has demonstrated a grown of annual rate of 0.90% during the last reporting quarter. Australia contributes 1.64% to the world economy with a monetary value of $1015 billion, according to the World Bank. According to the Index of Commodity Prices (2010) the prices of iron ore, coal and crude oil has increased by 3.2% on monthly average basis in Australia. This wills strengthen the confident of consumers and investors to invest in renewable energy products.
Change in technology is inevitable. New products are created by technological advancement. The first solar cell was patent in 1946, today using this cell, people are had invented satellite. With increase awareness of general consumer and the amount of sunlight hitting the earth, solar based product will become a necessity product in common household.
Climate change is no more a taboo. It is now been widely spoken, written and discussed by the world leaders. Industries are impacted by the change in temperature; this has opened the opportunity for environmentally friendly product to penetrate the market. Consumer’s awareness has become a significant factor for companies to create hybrid cars and invest in research and development to create a better product for the future.
Australia has the highest average solar radiation of any continent in the world, which means our solar industry has the greatest potential to lead the world. In Australia there is legislation that governs the policies on promoting renewable energy. The law outlines the important of renewable energy, provide a guideline and code of conduct to retailer and consumer on renewable energy and energy safety, and regulate approval, licensing and tariffs. According to the department of Environment, by 2020, "The Low Emissions Energy Development (LEED) Fund is required to cut ‘green’ house gas emissions from the energy sector and contributes to the national target of 20 percent renewable energy", follow suit the Australian government has announced 10 million dollar to fund this project. This creates business opportunity for organisation to invest in environmentally friendly product.
The Australia Market for Solar Energy Products
The Australia has committed to increase the usage of renewable energy by 20% in 2020. At this point of time, only a minimal part of Australia’s energy comes from renewable sources. Clearly a massive expansion of renewable electricity is required to meet the 2020 target, this include electricity, transport fuels and heat. In order to achieve this target set by the Rudd government, Australia requires approximately 10 million installations of renewable energy product at a rate of 240 000 a year each year for the next 42 years. There is a vital need in the renewable energy industry in Australia.
The chart below shows the growth of energy consumption in Australia from 2005 to 2030 which was adapted from Australian Energy National and State Projections to 2029-30. According to the research, the Australia primary energy consumption is forecasted to grow at an average rate of 2.2 per cent a year. Fossil fuels still play a major role in Australia’s energy consumption static in which it contributes to 95% of total energy consumption percentage, the remaining balance 5% is contributed by renewable energy.
The primary energy consumption Queensland is project to rise by 2.1%, which is the third largest consuming state in Australia, which is lead by Northern Territory and Western Australia. Renewable energy
These are the advantages that contribute increasingly demand for renewable energy products:
Cleaner and free electricity generation, which and re-use and stored
Reduces the need for electricity infrastructures that the costly
Investment opportunities by creating new, local investmentand provide security. This has the potential to attract significant investment from interstate and overseas to invest in Australia.
Reduces carbon footprint and CO2 emission
Electricity supply security and price stability
Developing technology locally, that will enable strong domestic growth and create work force.
Figure 1: Primary energy consumption growth in Australia, by region.
(Source: Australian Energy National and State Projections to 2029-30, n.d)
On average there are sixteen companies in Australia that offers renewable or alternative energy solution products. The major competitors in this industry are:-
Arta Pty Ltd: - This is a family owned business that’ based in Numeralla, New South Wales. Fred started his business 20 years ago with one solar panel for lighting, today he and his family are designing, installing, maintain and repairing solar, wind and water energy systems. Their basic strategy is to "help people to make solar power work for them".
Energy Matters Pty Ltd: - Jeremy Rich is the Managing Director of Energy Matters, and it is a 100% Australia-owned, Energy Matters was an idea that started from Jeremy’s garage in 2006. Backed up by 100 employees, it is one of the largest energy wise companies in Australia. Energy Matter had its branches located around Australia. Energy Matters design, produce and install panels. They had also ventured into online trading, by allowing customer to order parts online.
Nu Energy Pty Ltd: - Nu Energy Pty Ltd has been in the industry since 1985. As member in the Clean Energy Council, Nu Energy has grown over the years. Nu Energy has the best access to solar technology of any company in Australia due to its shareholder network of partners across the world. Cleantech Ventures is a venture fund, funded by the superannuation funds that are investing in sustainable and renewable energy organisation. Angeleno Group, on the other hand is venture capitalised that are specialised on PV. Today with support and commitment of two major shareholders in the company i.e. Cleantech Ventures and Angeleno Group, Nu Energy had expanded it business to the United States. The company has wide range of network in Australia is because of its ability to manage large scale of implementations.
Australia targeted 45 terawatt-hours (TWh) of electricity by 2020 (www.martinot.info, 2009). Based on this statistic, the company’s market segments are individual consumer and other businesses. The products will be customised to meet the demand and the requirement of both individual and corporate customers. The company wants the customers to feel satisfied with the entire process of investing in renewable energy. The overall outlook on the energy consumption projection in Australia is that people are becoming for energy efficient. The growth is expected to increase by 2.2% each year. This gives a confident indication to the company to concentrate on individual customer and later develop to corporate customer.
Figure 2: Cumulative Number of Countries/States/Provinces Enacting Feed-in Policies.
(Source: http://www.martinot.info/RE_GSR_2009_Update.pdf, 2009)
Based on the investment and risk analysis, the stakeholders of this company are:-
Board of Directors: The Managing Director hold 45% of the share in the company, as he is the founder and main investor. The Board of Directors will split the remaining 55% in equal manner. In future the company proposed to go IPO, where public is encouraged to purchase its share. This will be used for future investments if it may require.
Employees: The employees are the backbone of this company. The success of this company is dependent on them. To ensure that we employ the appropriate and suitable employee, we had developed a skill pool database with the Skill Employee Association. This association will provide us with a list of employees that matched the requirement. This gives us an added advantage of hiring a certified trade. The company also ensure to pay the remuneration in accordance to the market benchmark and committed to obligate to the minimum wage as set by the government. We will ensure to provide the employee an equal employment opportunity, treat all our employees with respect. The company will look into hiring part-time employee to bridge the demand on our services in future to come.
Customers: The customers are the main source of return to our company, therefore maintaining and developing customer relationship is important to our company. Our relationship with existing customer and new customer will ensure the growth and success of Energy Vibe Inc.
Supplier: The raw material supplier is important for Energy Vibe Inc. There determine the cost of the product, which will lead to the pricing of our product. By having a committed supply chain will ensure there no delay in our production and will lead to efficiency level of our employees.
Government: The Australia government is one of the major stakeholders of Energy Vibe. This is because of the legislation and law that governs the renewable energy. The policies and procedures will determine our operation cost. The support and encouragement by the government will also increase the awareness on renewable energy, in which will result in increase to our bottom line.
The critical success factor which will directly influence our business in term of sustenance and success are:
Securing adequate infrastructure and strategic location
By having an adequate infrastructure in place will ensure the comfort level of our employee and customer. The office need to be professionally maintains as to reflect the company image which will boost the customers’ confidence and product branding. Locating the business in a primary and easy access location is important, as this will influence the target customer. The company will operate in Queensland at the initial stage, and later will branch out to all the major cities in Australia and New Zealand.
Developing and strengthening customer supplier relationship to build long term relationship
Energy Vibe is required to create relationship with supplier to ensure the supply of raw material is on timely and correct manner. Any disruptions on supply will impact the production cycle.
Building reputation in renewable energy industry
Developing reputation in any market is hard at the initial stage. By ensuring the selection of target market and providing world class service and value added service with personal touch will ensure the satisfaction and will guarantee return customer. This will create goodwill and the best way of advertising today is by "word of mouth".
Identifying marketing strategy
Strategising market method is important to ensure the product and service we offer is exclusive. Embarking of an aggressive marketing strategy by advertising in renewable energy website, government offices and newspaper will be beneficial.
Educating future generation on importance of energy security
Once the last barrel of oil had been used up, the future will only be depending on renewable energy. It is very critical to educate the younger generation on the importance of energy saving. The Department of Energy is predicting, "that an increase in domestic oil production between now and 2030,will limit the potential to reduce oil imports and it will not lower ‘green’ house gas emissions since it will not reduce oil consumption" (American Progress Organisation, n.d). With the increase demand in hybrid cars, general consumers are becoming environment savvy.
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