The U.S. Energy Industry Harvard Case Solution & Analysis

United States of America has been one of the leaders in the production and supply of energy and is also one of the largest energy consumers in the world. Energy industry of the United States is the third largest industry in America. Sub-sectors of energy producers in United States include: coal, oil, natural gas, renewable energy, electricity, fuels and the supply of electrical technologies worldwide. In fact, United States have made electric equipment and energy a strong market for the world. The global energy market is a $6 trillion industry, which combines as a competitive force for supply chain of installing, building and servicing of all kinds of energies.

The majority of the energy in United States is derived from fossil fuels and the data shown in the national energy suggests that petroleum provides 25%, natural gas 22%, coal 22%, renewable sector accounts for 8% while the nuclear sector accounts for a total of 8.4%. Over last fifty years the energy sector production has increased at a faster rate than the domestic energy production (Matthew, 2013).

Nuclear Energy

United States of America has been the largest nuclear power capacity provider that generates the largest amount of nuclear power in the world. Nearly, 25 percent of the United States electricity is produced at around 104 nuclear reactors in 31 states of the country. By, 2015 it is expected that first phase of 26 new nuclear reactors are expected to come on line. Sub-sectors in the civil nuclear industry are basically represented by companies that are manufacturers of nuclear components such as boilers, reactors, nuclear monitoring instruments, industrial valves, heat exchangers, economizers for boilers, fuel assembly fabrication, mining and conversion. Civil nuclear market place of the country is estimated at more than $500‐740 billion during the next decade and even has the potential to grow by generating more than 100 billion industry in next five years. Companies that are operating in the energy sector of the United States or specifically for the nuclear sector includes: American Atomics Inc, Dominion Resources, Duke Energy, UniStar Nuclear Energy, GE Hitachi Nuclear Energy, and NRG Energy (Jon, 2004).

Business Model

All the companies in nuclear sector of the energy industry are big giants and are central to the economy of the United States. The business model adopted by all the companies in the industry is related to improve technical features and aspects of the industry and offerings. Their present breakable productivity is going to be shot to pieces with increasing fuel prices that will be rooted in coming years with more advancement coming up in the industry. The current or the existing business model that is being used in the United States energy sector specifically the nuclear market consist of following features or the model (Jon, 2004).

Energy savings tracking methods:

The basic aspect for the energy sector of nuclear power includes the concept of managing expenses by cutting cost to the best of company’s skills. For now all industry players are looking to reduce prices by making sure that they keep control over expenses incurred in manufacturing the nuclear energy. This is the utmost requirement to compete in the nuclear industry with most players looking to compete on prices offered to clients and customers (Matthew, 2013).

Quality Check:

Another key element of the business model for nuclear sector is the check and balance over the quality delivered. Nuclear power being a sensitive entity that requires technical knowledge and expertise to operate requires a separate department which looks after the quality control for every product that is manufactured under the plant.

Outsourcing:

Outsourcing is a common feature of nuclear business model in today’s world in the United States. The reason is that although United States is considered as the hub for nuclear energy manufacturing but still it lacks in certain departments where companies such as Dominion Resources, Duke Energy, UniStar Nuclear Energy, GE Hitachi Nuclear Energy, and NRG Energy seek help and guidance of the United States government and army to manufacture the required material through other sources (Jon, 2004).

New business model

The new business models that have been adopted by industry players include the innovative and more user-friendly structure that helps the end user. To become successful in the current environment, new and innovative business models have been developed along with the new business architecture, protocols, pricing terms and increasing facilities with emerging products and services being enabled to bring new and improved versions of technologies. New business models still have to remain competitive and as per the requirements of the industry.......................................

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