Q4

10

I posted in 2.3

Product Development

The NextEra Energy Firm has been doing its best in this business, and by implementing some specific tactics, the company has been able to enhance quality, such as increasing renewable energy supplies. There has been fierce rivalry in this market, as various companies strive to meet the 2030 Sustainable Development Goals to continue benefitting from their operations (Aghahosseini, Bogdanov, & Breyer, 2020). These advantages have produced significant results in the company’s financial reporting, as seen in each calendar. The primary benefit here is product development, which is resulting in a rise in the number of outcomes created and generated each year. NextEra Energy has a current annual sales volume of over $18 billion and a total producing capacity of 45,500 megawatts, according to the company’s financial report. The company’s long-term commitment has aided in the generation of sustainable energy.

Regardless of the pressures of competition, NextEra Energy Corporation has remained focused and has always put its best foot forward, which is why the firm is succeeding. Differentiating the firm’s products is a vital management approach that has undoubtedly assisted the corporation in outperforming its rivals and competitors. The approach of distinguishing products has been employed in product positioning in comparison to other organizations that produce power. The target audiences (consumers) have acquired an interest in the corporation’s products because of this, as the majority of them want to achieve the 2030 Sustainable Development Goals (Burger et.al, 2019). The company has upgraded its services in order to develop its products and make them more distinctive, attracting more customers from various sources.

Taking advantage of economies of scale also entails improving services and expanding the business. More of NextEra Energy Inc.’s competitors were frustrated as a result of the company’s efforts to attract more customers, but this had no effect on the company’s ability to execute new initiatives. The company has benefited from its rivals’ and competitors’ frustrations because it has continued to create solid connections with customers by providing sustainable energy and supporting actions that address climate change. As a result, the corporation’s competitors have begun to cut their rates by 0.03 percent, implying that the company’s revenue record is substantially smaller during each marketing session (Aghahosseini, Bogdanov, & Breyer, 2020).

Many of this company’s competitors are currently battling to position their products and services. Competitors of NextEra Energy use product positioning to achieve their aim of generating clean, emissions-free power from many units (Bostanci et al., 2019). Several variables, including as the Covid-19 epidemic, had an impact on their product positioning approach. Consumers play an important part in a variety of businesses, and in this case, they were to assess if the product positioning strategy would succeed because they had long relied on nonrenewable energy sources (Kaleka & Morgan, 2019). The coronavirus pandemic disrupted many of the functions that many organizations had adopted, as well as many marketing efforts. Some rivals have devised tactics to maximize customer choice because of the coronavirus pandemic (Zhong et.al, 2020). The competition is the outcome of electrical market changes that have resulted in the use of financial instruments, generating supply and demand mismatches between planned and real supply and demand.

Prices are used in an energy market to both coordinate the actions of producers and electricity consumers so that supply and demand are equal, and to guarantee that these decisions are viable given the system’s physical limits (Kaleka & Morgan, 2019). The rates are particularly effective for NextEra Energy Corporation, resulting in its uniqueness in providing clean, dependable, and inexpensive power to more than 11 million consumers across Florida. In this scenario, conceptual understanding is required, which means that the organization’s management can utilize this information to expand their total corporate responsibilities. NextEra Energy Inc. is one of the largest firms in the industries, based on yearly sales, and it is expected to compete successfully while increasing.

Market Segment Demand

The renewable electricity business has been expanding and increasing, which is attributable to the requirement to account for nearly 95% of global power capacity by 2026. (Park, & Heo, 2020). Renewable capacity is predicted to be 50% greater from 2021 to 2026 than it was from 2015 to 2020. Stronger government regulations and more ambitious renewable energy objectives established before and during the COP26 Climate Change Conference are driving this trend (Zhong et.al, 202o). The development into renewable energy is being driven by high commodity costs and rising energy prices, which are posing new problems for the renewable energy industry. The increased cost of fossil fuels, for example, makes renewables more competitive.

The most important driver in the growth of renewable energy has been lower costs. Since 2010, the cost of solar photovoltaic power has decreased by 85%, while the cost of both onshore and offshore wind generation has decreased by roughly half (Zhong et.al, 2020). Both renewable energy sources are currently cheaper than fossil fuel power. Because of positive feedback loops, costs have dropped considerably. Because of economies of scale and competitive supply chains, among other things, the more renewable energy technologies are implemented, the less expensive they become. As a result of the lower costs, more deployment occurs. For example, each time the quantity of solar capacity deployed globally has doubled in the last decade, the cost of deploying solar power has decreased by 34%. (Zhou & Solomon, 2020). Because renewable energy systems are modular and standardized, cost reductions or technological advancements made in one region may be rapidly replicated in other locations.

Other elements of the adoption of renewable energy are similarly self-reinforcing. As renewables gain in popularity, political clout, and financial backing, it becomes simpler to enlist further policy and financial support. The cost of funding has fallen as bankers have a better understanding of the technical and project risks associated with renewable energy. Furthermore, data shows that renewable energy adoption is socially contagious: when one home installs rooftop solar, the neighbors who see it and hear about it are more inclined to do so as well (Park & Heo, 2020).

Direct selling is a preferred promotional method for NextEra Corporation since it helps to save unnecessary expenditures (Wan et al., 2020). Direct selling will ensure that the company’s items are less expensive than competitors. A direct sale is a type of penetration pricing strategy that entails offering a product to new individuals while also cultivating loyalty among existing customers. The firm should eliminate intermediaries to decrease expenses and increase sales. Given the variety of energy sources available, the company can undertake a plan that involves collaborating with the government to pique the target market’s interest in renewable energy.

References

Aghahosseini, A., Bogdanov, D., & Breyer, C. (2020). Towards sustainable development in the MENA region: Analysing the feasibility of a 100% renewable electricity system in 2030. Energy Strategy Reviews, 28, 100466.

Bostanci, G., Jerath, K., & Yildirim, P. (2019). Comparative Advertising and Product Positioning. Under Review at Quantitative Marketing and Economics. Retrieved from https://www.researchgate.net/profile/Pinar_Yildirim8/publication/337856434_Comparati ve_Advertising_and_Product_Positioning/links/5def1c3b92851c83647064d7/Comparativ e-Advertising-and-Product-Positioning.pdf ‘

Burger, S. P., Jenkins, J. D., Batlle, C., & Pérez-Arriaga, I. J. (2019). Restructuring revisited part 1: competition in electricity distribution systems. The Energy Journal, 40(3).

Kaleka, A., & Morgan, N. A. (2019). How marketing capabilities and current performance drive strategic intentions in international markets. Industrial Marketing Management, 78, 108- 121. Retrieved from https://www.sciencedirect.com/science/article/pii/S0019850117301207

Park, C., & Heo, W. (2020). Review of the changing electricity industry value chain in the ICT convergence era. Journal of Cleaner Production, 258, 120743.

Wan, X., Chen, J., & Chen, B. (2020). Exploring service positioning in platform-based markets. International Journal of Production Economics, 220, 107455. Retrieved from https://www.sciencedirect.com/science/article/pii/S0925527319302658

Zhong, H., Tan, Z., He, Y., Xie, L., & Kang, C. (2020). Implications of COVID-19 for the electricity industry: A comprehensive review. CSEE Journal of Power and Energy Systems, 6(3), 489-495.

Zhou, S., & Solomon, B. D. (2020). Do renewable portfolio standards in the United States stunt renewable electricity development beyond mandatory targets?. Energy Policy, 140, 111377.

Peer ‘s comments on 2.3 I posted

Mrudalini, you did a great job on the product development of wind energy presented to JGJ. Adopting some of NextEra's business tactics and maybe even partnering with them, in the beginning, to help gain venture capital. A partnership can also help you with distribution because larger companies have more prominent distribution channels.

Although renewable energy production is labeled clean, it is not necessarily environmental neutral since wind turbines kill large numbers of airborne animals such as bats. Consequently, stakeholders involved in the planning and operation of wind turbines are often in conflict when reconciling renewable energy. Coming up with a way to produce the energy without killing airborne animals, such as installing an ultrasonic noise that would warn the animal to stay away or that will attract them to fly around the turbines, would be great for production and giving people a piece of mind.  

Wind turbines are not very digital, so coming up with a more modern facility or wind turbine will be a great addition to the industry. 

Roux, J., & Martin, G. (2010). Wind Turbines: Types, Economics and Development. Nova Science Publishers, Inc.

https://windexchange.energy.gov/markets