Market Audit Report for E-cofueling
Executive Summary
E-cofueling company produces ‘clean’ fuel that has very minimal carbon emissions to the environment. It uses plant remains to produce ethanol which acts as an alternative source of fuel. The purpose of this report is to conduct a marketing audit report for the E-CoFueling Company. The report is detailed and will cover the background of the company, PESTEL analysis, SWOT analysis, and environmental analysis (both internal and external). The report will also cover customer analysis, competitor analysis and the stakeholder analysis of the firm so as to establish the factors that influence the market position of the company and also help in predicting the future direction of the company. E-Cofueling is a company that produces eco-friendly fuel and is currently promoting the use of ethanol as it demonstrates the efficiency of this type of fuel and the benefits that it brings to the environment. The E-cofueling is still in the pilot stage and has been widely seen as the fuel for the future. There are some difficulties that have been encountered during the production of e-cofueling but measures are being taken to ensure that it becomes even more successful. This report will contain a detailed analysis of the e-cofueling market, the products and the customers.
Introduction
E-cofueling is company based Brisbane and has a team of knowledgeable and inventive persons who have formed associations to produce and commercialize ethanol as a source of fuel through the ethanol e-cofueling technology. The main aim of producing this fuel is to produce fuel with minimal carbon emissions into the atmosphere. This company has specialized individuals in different fields of technology who are working together to ensure that the fuel produced meet the international standards and help to solve the problem of harmful emissions to the environment. They are mainly focusing on the use of ethanol as an alternative to the fossil based fuel sources which cause adverse damage to the environment due to greenhouse emissions. There are ongoing improvements in this field of technology meant to improve the mode of production and the effectiveness of the fuels produced. The growth in this field will continue to enhance the charisma of the technology through growth of its broader scholar assets assortment. This company was recently granted the Australian federal government grant in order to identify partnerships and alliances that can be used to improve the technology. The inventions being made by the professional in this company are mainly concentrated around the compression engine technologies. The new developments are aimed at optimizing fuel usage and reduce any kind of harmful emissions to the environment. The company has been faced with several challenges in the years that it has been in the production of alternative fuel. However, it has been able to overcome most of the challenges and the future looks bright for the company as new technologies are being devised that can help the company improve the efficiency of its production and produce more quality ethanol.
Environmental scan
There is a lot of debate that surrounds the use of biofuels. Biofuels are known to be a better alternatives to the traditional petroleum based fuel sources as it is more carbon friendly. Biodiesel for instance is made from renewable sources and has lower carbon emissions to the environment. Due to the mode of manufacture and the less carbon emissions to the environment, biofuels can be said to be good for the environment hence a better option of providing energy as compared to the use of fossil fuels that contaminates the environment adversely. It is undoubtedly that biofuel is a greener option to other use of traditional sources of fuel as it mitigates the effects of the green house gas emissions thus reducing air pollution. It also helps in benefit the domestic economies as it results into reduced importation of foreign petroleum products.
Biofuels on the other hand has its negative effects to the environment which emenates from the raw materials being used for its production. The biofuels are produced from plant oils and from edible crops and this implies that there will be competition for basic foodstuffs and oils. The rain forests are currently being converted into palm oil plantations. The current crops which are being grown cannot keep pace with the bio-materials which are needed for producing biodiesel. This competition for the limited resources in order to produce biofuels can negatively impact the environment and food production at large.
There is a lot of evidence and information confirming that biodiesel plays a very important role in helping to reduce the emissions to the environment. However, lack of good political goodwill has led to a stagnation of the implementation process. Unless the politicians give a clear guideline on the implantation process, this technology cannot become popular. There is a lot of uncertainty surrounding the whole issue of using biofuels.
The governments play a crucial role in the implementation of the process. There are a lot of wastes that are being thrown away into the environment and people do not care about the looming consequences of having such wastes in the environment. Recently most governments have proposed measures that can help in curbing such consequences. The governments are encouraging their citizens to recycle whichever wastes that they can. The governments are also in the process of establishing measures that can help in controlling the act of careless disposals. This has been achieved through educating the public about the issues surrounding biofuels. It is therefore necessary to have unbiased debates which are not influenced by any individualistic benefits so as to adequately address the use of biofuel.
Environmentalists on the other hand state that the use of biofuels is unrecoverable damage to the environment. The crops used for the production of biofuels pose some form of competition to the foodcrops. Therefore there is need to hit a balance between the two (crops for biodiesel production and crops for food production). The governments should embrace the concept of reducing greenhouse gas emissions and strategize ways of finding am alternative fuels source. In order to adequately solve this problem, the government should think of using second and third generation biofuels so as to eliminate the problems involved when the first generation biofuel plants are used.
PEST analysis
If there is apolitical goodwill among the politicians, then the production of e-cofuel can be highly boosted. However, due to conflicting interests this has not been achieved. The government has tried to give e-cofueling company a grant so as to enable it improve on its services, but there are some drawbacks that are being posed by lack of patents to protect the production process and grant the company a licensure to operate its activities without any kind of interest.
The cost of production on the other hand is relatively high and the company needs more resources to enable it facilitate the production of e-cofuel. The grant provided by the government is only sufficient for carrying out the research and not sufficient to carryout the production. The company is however, in the process of acquiring more funds that can enable it perform all the operations successfully and ensure that there is adequate and sufficient production of ethanol that can be used as fuel at an affordable cost.
There is improved technological advancement as the company is composed of professionals who are very innovative. The professionals have been working tirelessly to improve their mode of production and through extensive research and partnership with other professionals, the company has been able to optimize its operations and have some improvements in their mode of production hence more efficiency. The new technological advancement has also helped in speeding up the research process and reduces the overall cost involved in the manufacturing process. It has also made it possible for the company to introduce plant species to be used for ethanol production that can be grown alongside food crops and have a faster maturity rate.
Competitor analysis
E-coFueling is currently offering options that can be used in order to reduce the carbon emissions to the environment. There are also some alternatives to the use of biofuels that are giving E-CoFueling a stiff competition as some offer even better alternatives with very minimal damage to the environment. Some of the alternatives that are available include: Electric (EV), Hybrid, Hydrogen, CNG, LNG and LPG. Companies producing such sources of fuels are posing a major challenge to e-cofueling company. The above mentioned sources have different degrees of greenness and readiness. There are some that can be directly incorporated into existing engines in a retro-fit form while others cannot be incorporated into the engines directly. The use of CNG, LNG and LPG also have some benefits to the environment as they have minimal environmental damages however, they are not renewable. Hydrogen offers one of the best alternatives but its usage has not been fully implemented.
Biofuel production in Australia has been on the rise in the recent past. There are several companies in Australia that subjects e-cofueling company into stiff competition. The companies also produce alternative sources of ‘clean’ fuel. They produce both ethanol and diesel through the use of plants. These companies have improved facilities that optimize their operations during the production process. The companies include:
AGRI Energy Limited – This Company develops both ethanol and biodiesel in large scale production and even exports some of the products to other countries across the globe.
Australian Renewable Fuels Limited – this company produces biodiesel at two plants in Australia and has an extensive network of customers.
Biodiesel Network – This Company mainly assists in the distribution of biodiesel to large markets across the country.
Grown Fuel – This Company has been in the business for over eight years and mainly deals with the production of biodiesel.
Of the four main competitors, only AGRI Energy produces ethanol. E-cofueling is using this opportunity to venture into a market segment that has not been overcrowded and has so far been successful.
Market analysis
The E-cofueling company is still in the pilot stage and has not been able to explore a wider market. Most of the products being produced by the company are in their initial stage and the future looks bright for the company. Sooner than later they will be able to explore more international markets with their new and improved ethanol that can be used as alternative source of fuel.
According to the PESTEL analysis, it is clear that the E-coFueling market is able to adapt to the technology being proposed by the company as a result of the following factors:
Establishment of strong framework of green policies being proposed by different the government. The Australian government has been on the forefront to promote the operations of the company as the government being a signatory to the Koki agreement, wants to reduce the amount of carbon emissions to the environment.
Different corporations are becoming more informed about the sustainable initiatives. The government has taken it upon itself to impose some stringent measures that can help curb the problem of harmful emissions into the environment.
The workforce in different countries where the company is marketing its products are able to adapt and execute technical jobs. The governments are also sponsoring programs aimed at promoting the use of the green fuel sources.
There is increased green awareness among the general public. The general public is being educated on the advantages that come with the use of the green fuels sources and the importance of conserving the environment.
Stakeholder Analysis
The E-CoFueling highly relies on three key stakeholders that include the governments, vehicle manufactures and the direct users of Diesel vehicles. All the three stakeholders have high importance in the E-CoFueling technology and equally influential in controlling the success of the new developing technology.
The government should put forth measures that can help in controlling the emissions to the environment. The Koki agreement stated that governments should strive to reduce greenhouse emissions to the environment. There are some drawbacks that have been realized since then but to a larger extent it has been successful. The US for instance is not a signatory to the agreement yet it has one of the highest greenhouse emission rates in the whole world. The Australian government has been on the forefront to promote the use of renewable energy sources that are friendly to the government. The government of Australia granted e-Cofueling company funding so as to enable it identify international strategic alliances with whom to partner in advancing the development and the implementation of the varying technology streams. This has helped the company expand further and improve the quality of services that they offer.
Vehicle manufacturers on the other hand can play a very important role in promoting the use of eco-friendly fuel. This can be achieved through manufacturing vehicles with modified engines that can use ethanol as a source of fuel. This can help in promoting the company’s operations and promote the production of e-cofuel to a larger extent.
SWOT Analysis
Strengths
The company is among the first in Australia to produce ethanol fuel
The company has innovative professional who are dedicated towards ensuring the success of the project.
The company has received overwhelming support from the government to aid in its operation
The company has formed partnership with professional from other countries who can help in the production process.
Weaknesses
Insufficient funds
Incomplete research
Opportunities
Market is still new therefore no stiff competition
Support from the government
Threats
High cost of production
Conflict of interest
Lack of raw materials
Gap analysis or a TOWS analysis
The company has had a lot of improvements in the recent past as a result of the improved technology and the involvement of the professionals in the field of production. New plant varieties have been introduced aimed at reducing the completion with food crops.
The funds given by the government have made it possible for the company to engage the help of other professionals across the globe hence making it possible for the company to improve its research services
The company has some little competition in the market therefore needs to rise above the early entrants into the market in order to cope up with the competition.
Conclusion
The marketing audit therefore concluded that the ability of the E-cofueling technology to penetrate different markets cannot be easy and straightforward due to some prevailing factors like the costs involved in the overall process. However, with the government intervention, the company is likely to improve on its operations both within Australia and across the borders of the country. Funding the company has helped the company improve on its research operations and partner with other international professionals who can help in improving the efficiency of production hence optimize on their operations.
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