Choose An Industry You Have Not Yet Written About 391411

Choose An Industry You Have Not Yet Written About In This Course And

Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database, in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write an eight to ten (8-10) page paper in which you: Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates.

Considering the five (5) forces of competition, choose the two (2) that you estimate are the most significant for the corporation you chose. Evaluate how well the company has addressed these two (2) forces in the recent past. With the same two (2) forces in mind, predict what the company might do to improve its ability to address these forces in the near future. Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer. Give your opinion on the corporation's greatest strengths and most significant weaknesses. Choose the strategy or tactic the corporation should select to take maximum advantage of its strengths, and the strategy or tactic the corporation should select to fix its most significant weakness. Justify your choices. Determine the company’s resources, capabilities, and core competencies. Analyze the company’s value chain to determine where they can create value using the resources, capabilities, and core competencies discussed above. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.

Paper For Above instruction

In this analysis, I have selected the renewable energy industry, focusing on NextEra Energy, Inc., a leading publicly traded corporation within this sector. The renewable energy industry is experiencing rapid growth, driven by global efforts to combat climate change and shift towards sustainable sources of power. Thorough research from the company’s website, SEC filings, and reputable industry reports reveals vital insights into how external environmental segments, competitive forces, and internal capabilities influence NextEra Energy’s strategic positioning.

The two most influential segments of the general environment impacting NextEra Energy are technological advancements and regulatory/policy factors. Innovation in renewable technologies, especially solar and wind energy, remains crucial for maintaining competitive advantage and reducing costs. Continuous technological improvements enable the company to enhance efficiency and scale, which directly impacts profitability and market share. Additionally, government policies, such as tax incentives and renewable energy mandates at federal and state levels, significantly shape strategic trajectories. These policies promote investment in renewables, and policy stability influences long-term planning and capital allocation.

Regarding Porter’s Five Forces, the two most significant for NextEra Energy are bargaining power of suppliers and threat of new entrants. Supplier power is notable because sourcing specialized equipment like turbines, solar panels, and batteries involves few suppliers, some of whom have considerable bargaining leverage. The company manages this risk through contractual agreements and strategic partnerships, but supply chain disruptions remain a concern. The threat of new entrants is substantial given the declining costs for renewable technology production and the entry of large tech and manufacturing firms into energy generation. NextEra Energy has responded by investing heavily in project development, leveraging economies of scale, and establishing long-term power purchase agreements (PPAs) to secure market share.

Looking ahead, to better address supplier power, NextEra Energy might diversify its supplier base and develop in-house manufacturing capabilities, thus reducing dependency. To counteract the threat of new entrants, the company could accelerate innovation and expand its renewable portfolio through acquisitions or international expansion, maintaining a competitive edge.

External threats facing NextEra Energy include policy volatility, fluctuating commodity prices, and climate change impacts, which could disrupt operations or alter regulatory environments. Conversely, significant opportunities involve technological improvements lowering costs, increasing demand for clean energy, and potential government incentives. To mitigate sanctions-related threats, the company should actively engage in policy advocacy and diversify its markets. To capitalize on opportunities, NextEra Energy should continue to innovate and invest in emerging technologies such as energy storage and grid modernization.

The most serious external threat is policy uncertainty, which could impede project development or affect incentives. The greatest opportunity lies in expanding renewable capacity and integrating advanced storage solutions, which would solidify its market leadership and ensure long-term growth.

In my opinion, NextEra Energy's greatest strength is its vast renewable asset portfolio and operational expertise, which give it a competitive advantage in large-scale project development. Its most significant weakness is its high capital expenditure requirements, which could strain finances in downturns or during large projects. To maximize its strengths, NextEra Energy should focus on expanding its renewable assets and optimizing operational efficiencies. To address its weaknesses, the company could pursue strategic partnerships or financing arrangements to offset capital costs and improve financial flexibility.

Core competencies of NextEra Energy include its extensive experience in renewable project development, strong relationships with government agencies, and technological expertise in wind and solar energy. These capabilities allow the company to deliver projects efficiently and innovate continuously.

An analysis of NextEra Energy’s value chain reveals several opportunities for value creation. Its R&D activities foster technological innovations that reduce costs and increase efficiency. Its procurement process ensures access to high-quality equipment at competitive prices. Operations management emphasizes scaling and optimizing renewable sites for maximum output. Finally, its strategic marketing and contracting abilities secure long-term PPAs, creating stable revenue streams. Investing further in R&D and supply chain resilience can amplify these value-generating activities.

References

• Bloomberg New Energy Finance. (2023). Global renewable energy market outlook.
• NextEra Energy, Inc. (2023). Annual Report. SEC Filings.
• Porter, M. E. (1980). Competitive Strategy. Free Press.
• U.S. Energy Information Administration. (2023). Solar and wind energy data.
• World Resources Institute. (2022). Policy impacts on renewable energy deployment.
• Holland, S. P., & Mansur, E. T. (2021). Grid modernization and energy storage growth. Energy Economics, 96, 105134.
• International Renewable Energy Agency. (2022). Renewable Power Generation Costs.
• Gillingham, K., et al. (2018). Varieties of policy support for renewable energy. Energy Policy, 116, 34–39.
• McKinsey & Company. (2023). The future of renewable energy infrastructure.
• Barbose, G. L. (2020). Using capacity factors to compare renewable electricity sources. The Electricity Journal, 33(7), 106782.