I. Industry and competitor analysis
1. Threat of substitutes
2. Threat of new entrants
3. Rivalry among existing firms
4. Bargaining power of suppliers
5. Bargaining power of buyers
II. Business model development
1. Flow chart & Value chain analysis
2. Core strategy
3. Strategic resource
4. Partnership network
5. Customer interface
Threat of substituent is estimated as medium level. In the perspective of the traditional energy business like petro-company, there are always several threats of substituent for example, emerging energy sources, international situations, etc. In our business, they are either, furthermore, we should compete with existing companies.
First of all, ‘fancy’ energy sources like solar energy can be one threat to our agency. Even these sources are expensive enough than fossil fuel, our business need to follow cost competitiveness with these emerging industry in long term view. Since our service is worth when it reduces energy cost while is not being expensive.
Second possible substituent is oil price. Since current energy value is determined by the international oil price, it is possible that future customers would choose not to change their energy consuming behavior. However, it is anticipated that international oil price will still be increasing