|Type of paper:||Essay|
|Categories:||Company Marketing Strategic management|
Increased Competition in Exelon Corporation as a Result of Globalization
Exelon Corporation is the leading energy production firm in the United States. The company has more than 28,000 employees serving approximately 7 million clients (Exelon Corp, n.d.). With the increasing demand of power in the United States, Exelon Corporation has a strong brand name whereby it has been ranked as #1 U.S. utility. In the last decade, globalization has been the new concept in corporations such as Exelon. The phenomenon has affected the business life, economy and environment in different ways. The changes brought by globalization in Exelon Corporation relate to increased competition and the adoption of new technological techniques to exploit new business opportunities. Globalization results in increased competition within the business market based on the fact that consumers are presented with a multitude of choices. Users tend to expect high quality service delivery at lower costs. Exelon Corporation faces competition from Pacific Gas and Electric, Commonwealth Edison and South California Edison. With the increasing competition, the corporation has opted to adopt the growing trends of renewable energy to expand their product portfolio. Significantly, globalization has heightened the adoption of new technologies within the firm’s business processes. Exelon Corporation is the #1 U.S. utility thus has opted to adopt new technologies such as the production of nuclear energy which is considered affordable and reliable.
Impact of Technology
Technological advancement is inevitable in the business world whereby it has a significant impact on how businesses operate. By posing a challenge to the traditional business models, new technologies deliver significant benefits to both the company and the consumer. For instance, Exelon Corporation adopted emission reduction technologies through the fuel cell technology, an aspect that created a strong brand name for the organization (Exelon Corp, n.d.). The issue of climate change is real thus the consumers are highly concerned about the type of energy sources in use. Significantly, technological advancement has provided the energy company with the ability to improve its internal efficiencies of power generation and distribution. Additionally, new technology has provided the company with an excellent product portfolio including the production of nuclear, wind, thermal and geothermal power enhancing it to increase the market share, an aspect that results keeps the corporation in s strong financial position. With the new technology, Exelon is in a position to tap clean, affordable and reliable nuclear energy thus intensify its growth both at the domestic and international markets.
Industrial Organization Model
The industrial organization model incorporates an external perspective to describe the driving forces outside the firm that represent the significant influences of the corporation’s strategic actions (Tremblay, & Tremblay, 2012). In a similar context, the external forces dominate the influence of heightening the average returns accrued by Exelon Corporation. With an increasing demand of power in the United States, Exelon is presented with an opportunity from which it can tap to increase its earnings. Primarily, technological advancements equip the organization the capacity to produce nuclear energy that is not only clean but also affordable. This aspect enables the organization to meet the consumer’s demand. However, the implementation of nuclear power generation requires the corporation to meet the legal requirement stipulated by the government. The legal restrictions might pose a challenge but comply with the set legislations with providing the organization with an opportunity to be at the competitive edge. With the large installation capacity of 4GW, Exelon can distribute power both at the domestic and international level. Additionally, the strong brand name and the right product portfolio places the company in a good position to meet the increasing market demands. Despite the current competition, venturing into the new opportunity translates to an increased market share of the domestic and international market that results in massive revenue generation (Tremblay, & Tremblay, 2012).
The resource-based model adopts the internal perspective to illustrate how the organization's unique internal capabilities and resources can provide a basis for its new strategy to earn above the average returns (Wit, & Meyer, 2010). According to this model, the internal capabilities and resources of the firm are more vital when determining the appropriateness of the strategic actions (Wit, & Meyer, 2010). With an installed capacity of an estimate of 4GW, Exelon Corporation is equipped with better capabilities and resources compared to its competitors. The firm has a good product portfolio comprising of hydro, thermal, geothermal power plants thus has been identified as the leading power production company in the United States. Furthermore, the extensive transmission of infrastructure equips the firm a reputable brand name compared to its competitors such as Pacific Gas and Electric. Exelon Corporation has been able to acquire a huge market share resulting in a stronger financial position. The vast resources and revenue collected by Exelon place it a better competitive advantage thus enabling the firm to adopt new technologies such as the production and distribution of nuclear energy. Thus, Exelon can focus on expanding its power distribution to southern and central Latin America, a region with a high demand for power. With the growing trends of renewable energy, Exelon can focus its production on developing the non-conventional sources of power to meet the increasing demand in an environmentally friendly manner. This strengthens the company brand name and increases its market resulting in heightened revenues.
Vision and Mission Statements
At Exelon, the mission of the organization is to be leading diversified energy Production Company through the provision of clean, reliable, affordable and innovative energy products (Exelon Corp, n.d.). The firm’s vision statement reflects the perspective of providing clean and reliable energy to enhance a sustainable future (Exelon Corp, n.d.). The mission and vision statement of the organization enables it to provide innovation, better performance and drive progress in the community. Climate change is real thus there is an increasing concern in the production of clean energy. Therefore, the mission and vision statement of Exelon provides the company with a viable strategy for the production of clean and affordable energy, an aspect that intensifies success.
Stakeholders are important based on the fact that they impact major decisions within a business. At Exelon Corporation, the board members of the firm are determined to provide clean energy to the consumers by adopting environment-friendly power generation techniques. Additionally, they participate in strategic decision making to ensure the adoption of viable business strategies. The managers in the organization develop an innovation culture to make sure that the company is at the competitive edge of the business environment. Significantly, the managers ensure that the firm is in compliance with environmental regulations directed in the production of clean energy. With a staff base of over 28,000 employees, the workers show a significant commitment to innovation and progress. It takes massive hard work from the employees to ensure that the gas is flowing, the lights are on and new ideas presented for further improvements. On the other hand, millions of consumers provide a significant market share in the business environment enabling the firm to outdo its competitors. Mainly, loyalty amongst the customers enhances a strong brand name that tends to increase demand within the market. The community members play a vital role is ensuring a sustainable future by taking part in the firm’s corporate social responsibility to produce and distribute clean energy. The community depicts significant commitment in valuing the environment thus intensifies the adoption of reduced emission technologies to significantly reduce the undesirable impact on the surroundings.
Exeloncorp. Vision and values - Corporate information - Exelon. Exeloncorp.com. Retrieved 10 April 2017, from http://www.exeloncorp.com/company/vision-and-values
Tremblay, V., & Tremblay, C. (2012). New perspectives on industrial organization (1st Ed.). New York: Springer.
Wit, B., & Meyer, R. (2010). Strategy (1st Ed.). Andover, Hampshire: Cengage Learning.
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Free Essay on Strategic Management and Strategic Competitiveness in Exelon Corporation. (2019, Mar 13). Retrieved from https://speedypaper.com/essays/101-strategic-management-and-strategic-competitiveness
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