The energy sector is filled with several companies and requires individual companies in the sector to be very competitive in order to survive in the sector. The World Energy Company competitiveness, productivity and strategy have not only played a role in the company’s survival in the sector but have also been important in the company’s management.
Competitiveness
The World Energy Company identifies with the competition that exists in the sector. There are hundreds of companies that exist globally in the sector. Although entry into the industry is marred by several barriers, the existing companies are forced to employ competitive strategies in order to control the market and for their survival. The company relies on technology for its competitiveness. Technology is meant for product differentiation. The company, therefore, has two refining steps that are characterized by heavy employment of technology in order to have a high quality of fuel. Branding and marketing are the other competitive strategy that the company has invested in. People are therefore attracted to the products of the company because it is one of the companies in the sector that brags of 80% less emission of the GHC gas (Nesta, Vona & Nicolli, 2014).
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Competition has played a role in the company’s innovation objectives. The company stresses competition in order to encourage the employees to be innovative in order to help the company achieve its goals and mission. Competition and the strategies that it employs have also been subject to several organization models redesigning. The flexibility of the company to change its business models has been critical in the company’s management. It has also been used by the company to come up with effective competitive strategies. The competitive performance of the company is also being used as a measure of the current management’s efficiency in propelling the company to its desired goals, vision and objectives.
Strategy
The company’s strategic mid-term and long term goal is to be a leading global organization in the biodiesel commercialization by being a key role play in the distribution, manufacturing, international trade and market development. The company wants to be the largest supplier of biodiesel products. The company has an existing strategic plan that helps in achieving the goals. Among the strategies that the company has been keen on is the acquisition of companies. The company believes in the role additional companies to its brand would play in increasing the supply of its products. Acquisition of companies comes with several changes in human capital. Sometimes it can affect organization structure and at the same time, increase the productivity of the employees.
Cornering the fledgling market has been another strategic plan for the company to play a role in market development. The company has a marketing forecasting strategy that also includes price changes in a bid to ensure that key decisions made by firms in the market are geared towards the growth of the market. Cornering the market also means that the company plans to control the entire market in the future. The plan to control the market and bring about major market development has been a key motivation among the employees of the company for the last five years. The company has been focusing on hiring biofuels experts and talented employees in the field who are outsourced from other companies. The focus is meant to offer the company with market advice and necessary expertise skills in order to penetrate the market effectively and ensure its growth. Product differentiation is not only a competitive strategy but is also among the company’s strategic plan in achieving its mid-term and long term goals. It, therefore, means that the company’s management has to employ the best marketing strategies in order for the company’s product to be outstanding. It also means that the company has to be product-quality minded.
Productivity
The company’s productivity has increased over time. The World Energy Company is considered one of the companies that can produce close to over 660, 660 Metric Tons of biodiesel annually. The company has grown not only based on the level of production but also based on the revenue generation and expansion. Although the company is located in Rome, its products are found in several continents globally. With just hundreds of employees when it was still US Biofuels Inc., the company has employed several hundreds of other people as a result of its growth. The company generates billions of dollars and has future growth, estimations that it targets to achieve. Among the current plans of the company is setting up more plants in order for the company to increase the current rate of biodiesel production. The company has also been keen on product diversity. Alongside the biodiesel and other fuel products, the company wants to embark on other products that act as substitutes. The plan is not only to ensure that the company remains competitive in the market but also to ensure increased productivity.
The growth rate of the company and its productivity is enshrined in the company’s mission, vision and goals. Productivity is one key element that plays a significant role in the company’s management. All the major decisions that the company’s management makes has to incorporate productivity. From the hiring of employees by the human resource department to changes in the company’s supply chain model, productivity is something the company has to be keen on. All the employees in the organization work towards a shared vision of ensuring that the company remains on a high on its productivity. It, therefore, becomes another propelling factor for the company.
Reference
Nesta, L., Vona, F., & Nicolli, F. (2014). Environmental policies, competition and innovation in renewable energy. Journal of Environmental Economics and Management , 67 (3), 396-411.
