Advanced Energy Programs for Energy Conservation Case Solution

The Harvard Business Review published a case study that primarily focuses on Advanced Energy Programs for Energy Conservation. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Advanced Energy Programs for Energy Conservation has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Advanced Energy Programs for Energy Conservation using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Advanced Energy Programs for Energy Conservation faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Advanced Energy Programs for Energy Conservation to ensure that the company is able to respond to all the changes in the macro-environment. This is because Advanced Energy Programs for Energy Conservation cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Advanced Energy Programs for Energy Conservation will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Advanced Energy Programs for Energy Conservation.

• It is important for Advanced Energy Programs for Energy Conservation to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Advanced Energy Programs for Energy Conservation by impacting imports and exports.

Economic

• Advanced Energy Programs for Energy Conservation can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Advanced Energy Programs for Energy Conservation, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Advanced Energy Programs for Energy Conservation with more investment opportunities.

• The flexibility in the labor market allows Advanced Energy Programs for Energy Conservation to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Advanced Energy Programs for Energy Conservation to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Advanced Energy Programs for Energy Conservation to develop and align communication as well as marketing strategies accordingly.

• Advanced Energy Programs for Energy Conservation has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Advanced Energy Programs for Energy Conservation to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Advanced Energy Programs for Energy Conservation should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Advanced Energy Programs for Energy Conservation to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Advanced Energy Programs for Energy Conservation should adopt eco-friendly products to establish better relationships with the stakeholders.

• Advanced Energy Programs for Energy Conservation can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Advanced Energy Programs for Energy Conservation should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Advanced Energy Programs for Energy Conservation as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Advanced Energy Programs for Energy Conservation can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Advanced Energy Programs for Energy Conservation’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Advanced Energy Programs for Energy Conservation.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Advanced Energy Programs for Energy Conservation can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Advanced Energy Programs for Energy Conservation operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Advanced Energy Programs for Energy Conservation operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Advanced Energy Programs for Energy Conservation to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Advanced Energy Programs for Energy Conservation. The company can also switch suppliers for more reasonable pricing.

• Advanced Energy Programs for Energy Conservation can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Advanced Energy Programs for Energy Conservation industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Advanced Energy Programs for Energy Conservation can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Advanced Energy Programs for Energy Conservation can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Advanced Energy Programs for Energy Conservation operates.

• Expensive substitutes are available in the industry of Advanced Energy Programs for Energy Conservation, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Advanced Energy Programs for Energy Conservation operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Advanced Energy Programs for Energy Conservation operates has highly differentiated products, making it difficult for companies to win each other customers.

• Advanced Energy Programs for Energy Conservation can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Advanced Energy Programs for Energy Conservation can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Advanced Energy Programs for Energy Conservation to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Advanced Energy Programs for Energy Conservation has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Advanced Energy Programs for Energy Conservation to have a high level of customer engagement (Rizaldi, 2015).

• Advanced Energy Programs for Energy Conservation has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Advanced Energy Programs for Energy Conservation has a strong brand image in the market.

• A low-cost structure of Advanced Energy Programs for Energy Conservation has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Advanced Energy Programs for Energy Conservation is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Advanced Energy Programs for Energy Conservation has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Advanced Energy Programs for Energy Conservation on its research and development is comparatively less to other competitors of the market.

• Advanced Energy Programs for Energy Conservation uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Advanced Energy Programs for Energy Conservation operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Advanced Energy Programs for Energy Conservation. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Advanced Energy Programs for Energy Conservation can take it as an opportunity to expand its online presence.

• Advanced Energy Programs for Energy Conservation can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Advanced Energy Programs for Energy Conservation can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Advanced Energy Programs for Energy Conservation to expand its operations in multiple countries.

• Advanced Energy Programs for Energy Conservation can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Advanced Energy Programs for Energy Conservation, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Advanced Energy Programs for Energy Conservation to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Advanced Energy Programs for Energy Conservation.

• There has been constant pressure on Advanced Energy Programs for Energy Conservation to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Advanced Energy Programs for Energy Conservation.

VRIO Analysis

Advanced Energy Programs for Energy Conservation uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Advanced Energy Programs for Energy Conservation has a strong brand image and engages in corporate social responsibility.

• Advanced Energy Programs for Energy Conservation has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Advanced Energy Programs for Energy Conservation is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Advanced Energy Programs for Energy Conservation focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Advanced Energy Programs for Energy Conservation has been able to penetrate the market through its ability to raise large funds.

Rare

• Advanced Energy Programs for Energy Conservation operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Advanced Energy Programs for Energy Conservation has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Advanced Energy Programs for Energy Conservation has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Advanced Energy Programs for Energy Conservation is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Advanced Energy Programs for Energy Conservation is its high-quality products. These products have allowed consumers to make repeat purchases.

• Advanced Energy Programs for Energy Conservation operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Advanced Energy Programs for Energy Conservation to attract more customers.

• Advanced Energy Programs for Energy Conservation has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Advanced Energy Programs for Energy Conservation maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Advanced Energy Programs for Energy Conservation to explore more product development opportunities.

• Advanced Energy Programs for Energy Conservation is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Advanced Energy Programs for Energy Conservation that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Advanced Energy Programs for Energy Conservation to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Advanced Energy Programs for Energy Conservation to formulate effective strategies to achieve the company objectives.

Product

• Advanced Energy Programs for Energy Conservation has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Advanced Energy Programs for Energy Conservation to its customers. These distinctive products are not easily available at competitors.

• The products of Advanced Energy Programs for Energy Conservation are of higher quality, and thus, customers pay more prices for these products.

• Advanced Energy Programs for Energy Conservation designs products with traditional designs giving customers more product variety.

• Advanced Energy Programs for Energy Conservation offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Advanced Energy Programs for Energy Conservation to its customers.

Price

• Advanced Energy Programs for Energy Conservation follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Advanced Energy Programs for Energy Conservation for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Advanced Energy Programs for Energy Conservation to its customers.

Place

• Advanced Energy Programs for Energy Conservation uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Advanced Energy Programs for Energy Conservation globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Advanced Energy Programs for Energy Conservation has partnered with delivery service companies to distribute its products effectively to consumers.

• Advanced Energy Programs for Energy Conservation has also adopted an omni-channel distribution system.

Promotion

• Advanced Energy Programs for Energy Conservation uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Advanced Energy Programs for Energy Conservation to increase brand awareness.

• Advanced Energy Programs for Energy Conservation takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Advanced Energy Programs for Energy Conservation also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Advanced Energy Programs for Energy Conservation to attract and retain customers.

Value Chain Analysis

Advanced Energy Programs for Energy Conservation can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Advanced Energy Programs for Energy Conservation’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Advanced Energy Programs for Energy Conservation has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Advanced Energy Programs for Energy Conservation are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Advanced Energy Programs for Energy Conservation has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Advanced Energy Programs for Energy Conservation invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Advanced Energy Programs for Energy Conservation to effectively devise and build sales and marketing activities.

• Advanced Energy Programs for Energy Conservation offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Advanced Energy Programs for Energy Conservation has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Advanced Energy Programs for Energy Conservation has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Advanced Energy Programs for Energy Conservation uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Advanced Energy Programs for Energy Conservation has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Advanced Energy Programs for Energy Conservation are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Advanced Energy Programs for Energy Conservation can increase the capacity of its production so it can reach more of the customers in its existing market.

• Advanced Energy Programs for Energy Conservation can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Advanced Energy Programs for Energy Conservation in marketing and sales activities to increase the chances of successful market penetration.

• Advanced Energy Programs for Energy Conservation can design and develop a content that increases customer engagement within a particular marketplace.

• Advanced Energy Programs for Energy Conservation can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Advanced Energy Programs for Energy Conservation to penetrate the market.

• Advanced Energy Programs for Energy Conservation can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Advanced Energy Programs for Energy Conservation can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Advanced Energy Programs for Energy Conservation to mitigate the risk factors, and to gain customer groups of the market.

• Advanced Energy Programs for Energy Conservation can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Advanced Energy Programs for Energy Conservation to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Advanced Energy Programs for Energy Conservation for growth purposes. This will also take into consideration the cultural differences.

• Advanced Energy Programs for Energy Conservation should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Advanced Energy Programs for Energy Conservation.

• Advanced Energy Programs for Energy Conservation should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Advanced Energy Programs for Energy Conservation should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Advanced Energy Programs for Energy Conservation can come up with new improvements and modifications in the existing products to attract the market.

• Advanced Energy Programs for Energy Conservation should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Advanced Energy Programs for Energy Conservation to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Advanced Energy Programs for Energy Conservation can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Advanced Energy Programs for Energy Conservation can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Advanced Energy Programs for Energy Conservation, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Advanced Energy Programs for Energy Conservation can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Advanced Energy Programs for Energy Conservation should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Advanced Energy Programs for Energy Conservation should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Advanced Energy Programs for Energy Conservation should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Advanced Energy Programs for Energy Conservation is less affected by the new emerging competition in the industry.

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