Ascm 626 Purchasing And Materials Management Session 2 Readi

Ascm 626 Purchasing And Materials Managementsession 2 Reading List

Ascm 626: Purchasing and Materials Management Session 2 Reading List

Required Readings:

- Purchasing. Source: the-supply-chain/

- Four Dimensions of Supply Chain Integration. Source:

- Demand Chain Management: Enhancing Customer Lifetime Value Through Integration of Marketing and Supply Chain Management. Source: ct=true&db=bth&AN=&site=eds-live&scope=site

- Examining the interrelationships between supply chain integration scope and supply chain management efforts. Source: ct=true&db=bth&AN=&site=eds-live&scope=site

- Value of Information Integration to Supply Chain Management: Roles of Internal and External Contingencies. Source: ct=true&db=bth&AN=&site=eds-live&scope=site

Recommended Readings:

- Logistics and Purchasing: "A Tale of Two Cities"? Supply Chain. Source: db=bth&AN=&site=eds-live&scope=site

- Chapter 15: Supply Management. Source: MMG 515:

Project Outline

This project offers students the opportunity to apply the concepts covered in the course through industry and market analysis at both the industry and firm levels. Students should select an industry experiencing significant change—such as Healthcare Services, Data Security, Renewable Energy, Gaming, Residential Construction, Retail, Transportation, Advertising, Insurance, Telecommunication, or Banking—and identify one firm within that industry for analysis. The chosen industry and firm must be submitted via the assignment submission area by Sunday 11:59 p.m. EST in the Module 3 week.

The analysis should be written in essay format and include:

a. An exploration of the opportunities within the chosen industry.

b. An identification of the four leading firms in the industry, along with an analysis of why those firms are or have been industry leaders.

c. An application of Porter’s Five Forces Framework to analyze the competitive environment of the firm.

d. An assessment of the industry’s cost structure, distinguishing fixed costs, variable costs, sunk costs, and entry costs.

e. An analysis of the demand drivers influencing industry revenues.

f. An evaluation of the industry’s market structure based on the insights gathered.

g. A discussion of factors and trends likely to shape the industry over the next 3-5 years.

The final essay should be between 10 and 15 pages, using a 12-point Times New Roman font and 1.5 spacing. All sources must be cited in APA format. The first draft is due in Turnitin by Sunday 11:59 p.m. EST in the Module 5 week, and the final submission is due in Turnitin by Sunday 11:59 p.m. EST in the Module 7 week.

Assessment will be based on relevance, organization, content quality, research support, and application of economic concepts, according to the provided rubric.

Paper For Above instruction

The rapidly changing landscape of various industries requires a nuanced understanding of market dynamics, competitive forces, and strategic opportunities. In this essay, I will analyze the renewable energy industry, which has experienced significant transformation driven by technological innovations, policy shifts, and increasing environmental concerns. The focus will be on a leading firm within this industry—NextEra Energy—and a broader industry analysis based on the specified criteria, providing insights into the opportunities, competitive forces, cost structures, demand drivers, market structure, and future trends shaping this sector.

Industry Opportunities

The renewable energy industry presents substantial opportunities centered around technological advancements, environmental policies, and increasing demand for sustainable energy sources. Government incentives, such as tax credits and subsidies, foster growth, while global commitments to reduce carbon emissions propel investment. Moreover, innovations in solar, wind, and battery storage technologies reduce costs and enhance efficiency, making renewable energy more competitive with traditional fossil fuels (Bloomberg New Energy Finance, 2022). The industry also benefits from the decreasing costs of renewable technologies due to mass manufacturing and economies of scale. Public awareness about climate change fuels consumer and corporate demand for renewable solutions, creating a fertile environment for market expansion (International Renewable Energy Agency [IRENA], 2021). Additionally, decentralization trends and the rise of distributed generation open avenues for smaller players and new business models, such as community solar projects.

Leading Firms and Industry Leadership

In the renewable energy industry, four major firms are generally recognized as leaders: NextEra Energy, Iberdrola, Orsted, and Enel Green Power. NextEra Energy, based in the United States, leads due to its significant investments in wind and solar projects, innovative grid integration solutions, and a robust financial position (U.S. Energy Information Administration [EIA], 2023). Iberdrola, a Spanish multinational, has expanded globally through acquisitions and investments in offshore wind, exemplifying strategic diversification and technological leadership (Iberdrola, 2022). Orsted, a Danish company, pioneered offshore wind development and has become a global leader in this segment through relentless innovation and strategic project deployment (Danish Energy Agency, 2022). Enel Green Power, an Italian entity, has a diversified renewable portfolio across numerous countries, emphasizing geographic diversification and sustainable growth (Enel, 2022). The leadership of these firms derives from their technological expertise, strategic investments, financial capacity, and ability to capitalize on global policy trends favoring renewables.

Porter's Five Forces Analysis

The competitive environment of NextEra Energy in renewable power generation can be analyzed through Porter’s Five Forces. The threat of new entrants is moderate; high capital costs and regulatory barriers serve as deterrents but emerging technologies and distributed generation models lower entry barriers over time. The bargaining power of suppliers, such as turbine and solar panel manufacturers, is moderate due to a few dominant players and supply chain constraints, although increasing competition among suppliers can mitigate this power. Buyer power is variable; large corporate buyers and utilities have bargaining leverage, especially as renewable options become more commoditized, but smaller consumers face limited options and less influence. The threat of substitutes remains low unless advancements in nuclear or fossil fuel-based energy significantly reduce costs or governments roll back renewable incentives. Lastly, industry rivalry is high, driven by the presence of multiple multinational firms competing on technological innovation, project scale, and cost reductions (Porter, 1980). This competitive landscape incentivizes continuous innovation and strategic alliances.

Cost Structure Analysis

The industry’s cost structure encompasses fixed, variable, sunk, and entry costs. Fixed costs include infrastructure investments like power plants, grid interconnections, and long-term project development costs. Variable costs are primarily operational expenses such as maintenance, fuel (where applicable), and labor hours correlated with production levels. Sunk costs are significant, given front-loaded investments in technology development, R&D, and site-specific infrastructure that cannot be recovered once incurred. Entry costs are high due to capital requirements, regulatory approvals, and technological expertise necessary to establish operations at scale (Wüstenhagen et al., 2017). These costs influence industry entry and expansion strategies, favoring established players with access to capital and technology.

Demand Drivers

Demand in the renewable energy industry is driven by government policies, technological advancements, decreasing costs, and public environmental consciousness. Policy mechanisms such as renewable portfolio standards (RPS) and carbon pricing incentivize utility companies and consumers to adopt renewable sources. Technological progress reduces generation costs, making renewables more attractive economically, thereby increasing market penetration (IRENA, 2021). Public awareness campaigns and corporate sustainability commitments further stimulate demand. Additionally, the transition to electric vehicles and electrification of industries create secondary demand for renewable electricity. Economic growth and urbanization also amplify energy consumption, positively influencing revenues (U.S. Department of Energy, 2023).

Market Structure

The renewable energy industry exhibits an oligopolistic structure at the global level, dominated by a handful of large firms such as NextEra Energy, Iberdrola, Orsted, and Enel Green Power. These firms operate across multiple markets, leveraging economies of scale and technological expertise to maintain competitive advantages. Regional differences exist, with varying degrees of market liberalization and regulatory frameworks influencing competitiveness. The industry displays characteristics of contestable markets, given the substantial entry barriers but also the potential for new entrants driven by technological innovation and changing policies (Baker, 2020). Overall, the market structure favors incumbents with established infrastructure but remains open to innovative newcomers with niche technologies or business models.

Future Industry Trends

Over the next three to five years, several factors are poised to shape the renewable energy landscape. The continued decline in technology costs, driven by technological innovation and economies of scale, will likely accelerate adoption. Growing commitments by governments and corporations toward net-zero emissions are expected to bolster investments and policy support. Energy storage solutions, such as advanced battery technologies, will become more critical for intermittent renewable sources, influencing project design and market dynamics (IRENA, 2021). Additionally, digitalization and smart grid integration will enhance efficiency and enable more sophisticated demand management. Climate policies, including potential carbon border adjustments and stricter emission standards, will further reinforce the shift toward renewables. Innovations in offshore wind and hydrogen production also present promising growth avenues, emphasizing the evolving competitive and technological landscape of the industry.

Conclusion

The renewable energy industry stands at a pivotal juncture characterized by immense growth opportunities, technological innovation, and evolving market forces. Leading firms like NextEra Energy leverage technological expertise, strategic investments, and policy support to maintain industry leadership. Analyzing the industry through Porter’s Five Forces reveals a competitive environment shaped by high entry costs, supplier power, and rivalry. The industry’s cost structure emphasizes substantial fixed and sunk costs, with demand driven primarily by policy frameworks and technological advancements. The market exhibits characteristics of an oligopoly, with significant barriers to entry but ongoing opportunities for innovation and new entrants. Over the next few years, technological developments and policy commitments will continue to propel sustainable growth, underscoring the importance of strategic positioning within this dynamic sector.

References

• Baker, M. (2020). The structure of energy markets. Journal of Energy Markets, 13(2), 45-66.
• Bloomberg New Energy Finance. (2022). Global renewable energy outlook. Bloomberg.
• Danish Energy Agency. (2022). Offshore wind energy: Innovation and growth. Danish Energy Agency Publications.
• Enel. (2022). Annual report 2022. Enel Group.
• Iberdrola. (2022). Corporate sustainability report. Iberdrola.
• International Renewable Energy Agency (IRENA). (2021). Renewable Power Generation Costs in 2020. IRENA Reports.
• U.S. Department of Energy. (2023). Annual energy outlook 2023. U.S. DOE.
• U.S. Energy Information Administration (EIA). (2023). U.S. renewable energy data. EIA.
• Wüstenhagen, R., Wolske, K., & Hamsen, M. (2017). Cost modeling for renewable energy investments. Energy Economics, 69, 172-185.
• Porter, M. E. (1980). Competitive Strategy. Free Press.