Decent Essays
“Strategy is the integrated set of choices that positions the business in its industry so as to generate superior financial returns over the long run.“ – Professor Jan W. Rivkin (lecture 1) A business with a strategy will be able to sustain long-term(LT) competitive advantage which will result in better financial returns while giving the firm an overall direction and allowing adaptation, adjustments and learning over time (Modified from lecture 1&2). Hence, it’s imperative for Aquion to have a business strategy such as, porters five forces framework, Core competencies(CC), Resource-based view(RBV) or Value-based approach. Unlike other strategies, Value-based approach looks at the factors consumers consider when coming up with a value assessment…show more content…
Aquion could focus on significantly reducing its cost while improving the perceived benefits from its products. This will give Aquion the flexibility to choose a price that will increase its market share by outcompeting competitors or improve its profit margins. Aquion is already being cost savvy by using low cost raw materials, resource allocation process, semi-automated pilot manufacturing, combinatorial testing and also buying used low-cost machinery for prototyping. All these measures has resulted in Aquion being able to store energy at less than $0.01/kWh while the existing technologies range from $0.15kWh-$1.00kWh in grid applications. In non-utility markets, Aquion can still dominate by being price competitive as they have a modular/flexible design allowing them to meet customer demand. The benefits of Aquion’s battery were also better than its rivals as it was safe, non-toxic unlike Sodium sulfur batteries which were highly corrosive, reliable (decade long life span/1000s of lifecycle), performed well within a wide temperature range and has zero maintenance. Such benefits made Aquion’s battery highly lucrative to the more niche non-utility market as they had higher willingness to pay per kWh, were quicker to adopt new technologies, had more straightforward technical validation requirements, and did not require tens of millions of dollars for a demo plant. The B-C will improve more with time as product image improves due to network effects, company bundles product with warranties and puts in place Value creation and Pricing
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