Energy Environment Analysis of a Firm
Jaap de Jonge, Management Consultant, Netherlands
The "energy environment" is part of the external environment of a firm. There are many ways in which the energy environment could influence the strategic position of a firm. Especially if it is consuming a lot of energy. Just consider that each firm is competing with others who could be located in another energy environment.
- Is there enough energy available?
- Is the supply reliable (uninterrupted)?
- What are the costs (compared to other regions/countries)?
- Are these costs increasing?
- Are these costs fluctuating?
- Is the energy clean (green)?
- There are many more.
You might consider all of these elements under the P, E, S, or T categories of PEST analysis. Or create a separate category if it is very important for the company at hand.