Strategic review of a cleantech startup company (EMPO-NI)

Table of Contents

Executive Summary

List of abbreviations

List of Figures

1 Introduction of EMPO-NI
1.1 The sun is our mission
1.2 On and Off-grid market

2 Strategy
2.1 Vision
2.2 Mission

3 SWOT: External / internal analysis
3.1 Macro Environmental analysis (PESTE)
3.1.1 Political
3.1.2 Economical
3.1.3 Social
3.1.4 Technological
3.1.5 Environmental
3.2 Internal analysis
3.2.1 Strengths
3.2.2 Weaknesses
3.2.3 Blue ocean thinking
3.3 Strategic group analysis
3.4 Value chain analysis
3.5 The five forces that shape business strategy

4 Growth strategy and method
4.1 Ansoff Growth Matrix
4.2 Method of growth realization
4.2.1 Battery charger for Thin Film Solar panels
4.2.2 System solutions for Electrical bicycles and Pedelecs
4.2.3 HRM

Annex A:

Bibliography

Executive Summary

The strategic review of EMPO-NI identifies EMPO-NI’s todays situation in the market place and provides in its last chapter recommendations for further actions and spots poten­tial difficulties in the further development of this young company.

EMPO-NI started in 2006 to develop products in the field of regenerative off-grid power supplies, e.g. focussing on charging batteries out of solar energy. As reflected in the mission and vision statement the company, recognized as “highly innovative company” and spon­sored by the Ministry of Research and Development in Germany, develops basic technolo­gies for the next generation “Thin Film” solar panels and emerging applications like Elec­trical vehicles. The two new products and technologies to make inexpensive Thin Film solar panels applicable for off-grid markets and to develop a “Private E-bike” refuelling station that collects a day’s sun energy in a standard battery and transfers it during parking time of the E-Bike into the bike’s Lilon storage are the current highlights of EMPO-NI. The company inherently has got the technical know how and the experience to develop and by subcontracting to produce their battery chargers for standard and customized appli­cations. EMPO-NI has well internalised the “Blue Ocean” approach. The external analysis reveals good opportunities for EMPO-NI’s portfolio and capabilities and, hence, in the strategic group analysis it turns out that EMPO-NI’s trade-off between customer cost and technical features are most preferable. Furthermore the value chain analysis provides an image of the company’s structure and core activities / outsourcing policy which for the throughput of EMPO-NI appears well optimized and competitive in the market place.

The deep analysis of the five forces that shape EMPO-NI’S business strategy reveal that the overall environment is optimal for profit making.

Having completed the strategic analysis the growth strategies are determined based on the innovative approach of new products, e.g. the company should pursue further growth strategy to develop and to diversify products and markets. The two new products and technologies to make inexpensive Thin Film solar panels applicable for off-grid markets and to develop a “Private E-bike” refuelling station need a wide recognition to really start making the young company grow. The formulated recommendations to EMPO-NI include the strategies to form alliances in the distribution of the products themselves and to strate­gically cooperate with manufacturers of E-Bikes and LiIon technology to broaden the base of the products by compatibility as well as the hiring of more personnel in its marketing and sales organization.

List of abbreviations

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List of Figures

Figure 1: On-Grid System layout [www.sma.de]

Figure 2: Off-Grid System Example [busyboo.com]

Figure 3: Competitive situation for crystalline and thin film solar systems

Figure 4: Strategic group map: Customers cost vs. customer solution, technical features and functionality as key differentiators

Figure 5: The value chain of EMPO-NI comprises 6 stages:

Figure 6: Porter’s 5 forces that shape business strategy (Porter, 2008)

Figure 7: EMPO-NI’s strategy to be successful in the off-grid market place: Example chosen is here battery chargers for Thin Film photovoltaic modules

Figure 8: Ansoff growth matrix (Ansoff, 1957)

1 Introduction of EMPO-NI

1.1 The sun is our mission

EMPO-NI is a company founded by Rimma Pavlovna M.A. in Hellerhof, Düsseldorf, Germany in 2006.

This company develops state-of-the-art innovative products to charge batteries out of solar energy and provides electrification in areas where electricity is (feasibly) not available today.

Today 3 people are working in this company in Germany in the research and development of the products which are sold under the EMPO-NI brand name. The company utilizes Electronic Manufacturing Services (EMS) in Istanbul (Turkey) and Liptówsky Hrádok (Slovakia) as well as final assembly and proprietary Quality Assurance (QA) facilities in Düsseldorf (Germany).

Using “cutting edge technology” [midsummerenergy 2010] EMPO-NI plans to launch new unprecedented products for the autonomous solar market and plans to enter the off- grid wind and water turbine market before end of 2011. Every year new products are launched and the gap between EMPO-NI and its market place’s rivals becomes larger. In­novation, technology and reliability keeping in mind EMPO-NI’s customers cost and bene­fit are key objectives in the development of products.

EMPO-NI being sponsored by the Federal Ministry of Research and Development as “highly innovative company” plans strategically the next moves on the market place. This planning is one of the success factors that provides continues growth strategy.

This paper deals with a deep analysis of EMPO-NI’s corporate strategic management start­ing from EMPO-Ni’s Vision and ends with proposals to realize growth .

For more background information on the company and their products please visit the web­site www.empo-ni.de

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http://www.empo-ni.de/home.html

1.2 On and Off-grid market

There are two general types of solar applications: On-grid and off-grid. While on-grid sys­tems feed in the harvested solar energy to the grid at a so called feed-in tariff, the off-grid system in contrast supplies energy to charge a battery aiming to reach independency from the grid. Figure 1 shows the structure of an on-grid system.

illustration not visible in this excerpt

Figure 1: On-Grid System layout [www.sma.de]

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Figure 2: Off-Grid System Example [busyboo.com]

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