Smart Meter: International Business Harvard Case Solution & Analysis

Introduction

The paper attempts to describe a concept application paper in which the product Addad-5 has been implemented in the Hungarian market, Europe. Therefore, the paper discusses the international business environmental, industrial, and competitor analysis, whereas, it also describes the external and internal factors that may affect the decision of the firm. The paper also describes the competitive strategy for the product and the degree of product adaptations. Lastly, the paper describes the managerial, financial, and allied organizational issues that might arise by launching the product in the European market.

About the Product

Smart Meters are the electric, water, and gas digital meters which are able to send its meter information through the use of radiofrequency electromagnetic radiation (RF) to different utility companies. The product that has been selected is ADDAD-5 smart meters which have been designed for meeting the needs of industrial, commercial, and the residential energy consumers.

Environmental Analysis

While assessing the social environment, the focus has been made on the household in the Hungarian energy market. Currently, 3 million gas and 5.5 million electricity consumption meters have been embedded in the Hungarian market. However, this consumption is expected to increase further in future in the entire region due to which it needs contractors and companies that could provide them the meters according to the particular market. The awareness of consumers has increased since the market has been liberalized in the country, however it has still been lagging behind the other countries in the European Union. There is a significant technological impact on the Hungarian market as the country is aiming to achieve high level in technology. Through the installation of ADDAD-5, the company might be influencing a technological shift in the structure of the Hungarian market which would also impact the cost and the quality structure of the industry. The electronic reading meter would reduce the cost of the company and increase the quality of the meter reading across the country which would enable good and accurate returns to the state and the company (Atkearney, 2010).

The technological impact would be the largest amount of impact in the energy industry of the Hungarian market. When smart metering is combined with smart technological products, it would enable green production which is good for the environment and also for the entire industry. The particular advanced technological product may also influence positively towards the customers as due to the high cost of electricity in the country, ADDAD-5 would reduce and slow down the effect of electricity through the embedding of that particular technology (Atkearney, 2010).

Industry and Competitor Analysis

Presently, the power market of Hungary is not competitive according to the EU report. It is being discussed in the bill to introduce a strong competition in the Hungarian market so that it would provide a strong growth development in the country and the companies would also benefit from the untapped market. This particular charter is still in discussion in the European Union. However, there is currently no regulations in the smart metering production or its outsourcing. The largest player in the industry is Elektrovojvodina power distributor which is controlling two AMR pilots amongst which each of these pilots have 1500 meters installed. However, the company has aimed to install 30,000 meters by the end of 2010 which would allow the company to cover the entire Vojvodina province in Hungary. The company also aims to embed 830,000 meters within the next ten years in the future (Shargal, 2009).

The other Smart Metering companies include Elster Metering which is a UK based company and has been providing its services to the Hungary through selling its smart meters. The company falls under the Elster Group and is considered as the Leader in the entire world in the category of Advanced Metering Infrastructure (AMI). The company tops in providing water metering solutions to countries. The other strong competitor present in the Hungarian market is Landis Gyr which is the US based company and has competitive advantage in managing the utilities energy better than their competitors. The company is efficient in reducing the cost of its energy produced and maintains a strong and sustainable utilization of resources. The company is the world leader in the electricity smart metering and maintains its strong position in the overall smart metering manufacturing (Environmental Experts, 2014).......................

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