How did the Energy & Natural Resources Company respond to its product analysis challenge?

An energy and natural resources company started its new venture of generating geothermal energy. The company during the initial days of the new venture started facing losses owing to improper product analysis. The company officials then reached out to Research Nester for help and to take expert advice to overcome this problem.

energy-natural-resource

An overview:

1

The company was one of the leading businesses in the field of renewables

2

After serving for more than 2 decades, the company expanded its business and started its new venture of generating geothermal energy but faced loss owing to the no proper product analysis

3

Research Nester consultants looked into the matter and made a strategic plan to overcome the loss and bring the business on track

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The Story

The U.S.-based energy and natural resources company was in the business of renewables for many years. The company had a strong place in the market, and due to this, it decided to expand its business of generating geothermal energy without proper product analysis. Unfortunately, the new venture failed, leading to a loss in the business. The new venture had many challenges, one of which was cost. The cost of developing geothermal energy was very high, leading to business failure. Moreover, geothermal plants need hydrothermal resources to produce energy, and location constraints were one of the leading causes of business failure. However, the U.S., a country with volcanic eruptions, is not a great place to set up a geothermal power plant. In addition, earthquake risk is also one of the causes of loss. After facing constant losses in business, the company's professionals contacted Research Nester for consultation and strategic planning. Consultants at Research Nester analyzed the situation and suggested measures that could be incorporated to bring business back on track.

Our Solution:

Following an analysis, Research Nester consultants concluded that the failure of the business was due to a lack of correct product analysis. Research Nester analysts recommended to company executives some measures that could be beneficial to the business. To emphasize this point even further, the Consultants offered a solution for product analysis consulting and informed the audience about the benefits and potential future developments of Geothermal Energy. The consultants also understood how crucial it is for a product to gain customers’ confidence and trust for the firm to expand. Following a thorough study, specialists recommended the below steps-

  • Making people aware of the value of the product comes first.
  • Next, choose a suitable location for the power plant.
  • Finally, consider the costs involved in developing the geothermal power plant. This issue can be fixed by strategically managing the finances.
  • Fourth, it's important to monitor water and air pollution.

All of the proposals were taken seriously by the firm, and they were all implemented. They worked by the suggested method, and they were successful in achieving their goal.

Results

For a variety of reasons, the company was about to lose money in its business. In their pursuit of profit, they tried every method but failed. At this point, officials began to consider using expert advice to help their businesses grow. The company's sales fell to USD 4550 million in 2019 before falling to USD 4220 million in 2020. In 2021, the company only made a small profit. That is when the company decided to implement an effective strategy to grow its business. In the year 2022, the sale totaled USD 6290 Million. Due to the experts' knowledge and business plan, the company experienced significant growth. The business benefited from Research Nester's professional advice to strengthen its position in terms of market share, and it is now one of the top businesses. They have incorporated their best plans and strategies to assist businesses in making a profit.

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Swara Keni

Head- Global Business Development

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