ELEPHANT DUNG AND THE BIOETHANOL GOLDRUSH Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

ELEPHANT DUNG AND THE BIOETHANOL GOLDRUSH Case Solution

INTRODUCTION

This case provides a deep insight into the most talked about global issue, which can change the dynamics of petroleum industry. For many decades, it was believed that there is no substitute to petroleum or it is nearly impossible to develop any new technology which can serve the purpose of petrol. However, governments all around the world especially the Governments of Europe, America, and North America have taken significant interest in the production of bioethanol, which can act as a gasoline substitute. These initiatives started right after the global oil crisis of 1973. These governments soon realized that the complete dependence on Middle Eastern countries for national oil and gasoline consumption requirements is not a proactive and appropriate strategy to pursue and it must not be followed in future and that, they have to start working on any other technology to extract a substitute of gasoline out of it.

Currently Nedalco, the subsidiary of Royal Cosun the manufacturers and marketers of pure natural alcohol recently started working on the technology, which can transform current petroleum industry and they can make billions of dollars if they can commercialize this new innovation. The technology is working on the premise that it will reduce worldwide gasoline consumption and the world will move towards bioethanol to fulfill their fuel needs for cars, plants, and machinery. Furthermore, it is also necessary for Nedalco’s survival; since the industry within which Nedalco is a major player, is now nearly fully saturated with the number of other players of the industry also manufacturing the same alcohol. In addition to that, they are continuously cutting the market share of Nedalco or the Nedalco is unable to increase its market share and is trying to stand on the current market share. There is a growing need of Nedalco to enter into any other new industry to survive and they are working on to enter and develop market of bioethanol. However, there many issues which require deep analysis before entering into this new industry.

PROBLEM STATEMENT

Nedalco is currently facing two problems, which are growing competition and competitive rivalry in the current industry where it is currently operating. The other problem is whether Nedalco should invest heavily on this new bioethanol technology to enter and rule this new energy market.

INTERNAL AND EXTERNAL ANALYSIS

The analysis of the current and future dynamics of the environment for Nedalco is necessary so that they can make their move confidently into new industry of bioethanol. The introduction of Nedalco in the new industry requires a lot of pre work on the global uncertainty in laws and regulations of different countries. The production cost of producing bioethanol for fuel purpose the current situation of bioethanol market/industry the analysis will be carried out using different models. Which are as follows; but first, there are some strategic issues Nedalco is currently facing, which should be resolved or at least there should be a consensus on these issues if Nedalco is serious about entering this new industry of bioethanol. The questions are as follows.

WHAT ARE THE FIVE KEY STRATEGIC ISSUES FACED BY NEDALCO?

How important is this new technological innovation for the future prospects of Nedalco?
Should Nedalco consider selling or licensing this technology or whether it starts its own production and think of how moving out from Netherland will serve their purpose to start their own production?
Current industry within which Nedalco operates is mature and survival is also necessary the question is whether Nedalco is ready to expand into new operations?
How Nedalco will tackle the barriers, which are in form of regulations and global bioethanol industry the petroleum, lobbies, the environmentalists lobby?
How fast should Nedalco move and in what direction?.................... This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution