Market structure
Hawaiian electric company Inc is a subsidiary of Hawaiian Electric Industries which is the major electricity supplier in the state of Hawaii which is also facilitated thorough other subsidiaries; Maui electric company limited and Hawaiian electric light company Inc. The company has been in operation for more than a century which has seen it grow its supply to over ninety five percent of the population. Together with its mother company, Hawaiian electric company Inc employs a workforce of over two thousand people and many residents consider it to be the major electric power company.
This kind of service is only possible where an organization controls majority of the market considering the location of the market. Despite its …show more content…
In this case, power remains unique in the Hawaiian market because of the limited competition. Focus strategy as the name suggests centers on the business selling its products to different markets that it deems have the need for their products. In this case, Hawaiian electric company Inc has already captured the only market available through satisfaction of the market needs. Finally, the cost of leadership means that the company reduces its operational costs in order to have the lowest prices in the market. In the case of Hawaiian electric company Inc, the prices cannot be undercut below its other competitor because they serve two different regions. However, in order to maintain reasonable market prices, the company does not have a redundant workforce and employs new technologies in reduction of wastages to reduce cost of production and distribution (Cecere, …show more content…
The strategies chosen should influence the demand and supply in the market. Where the focus strategy is applied, the business should identify the market needs in order to control the market demand. In this case, Hawaiian electric company Inc has already captured the required market and is in full control through power supply and distribution. Where the differentiation strategy is feasible, the company is required to come up with a unique product for the unique market. This vision was realized over a century ago by the founders of Hawaiian electric company Inc (Daft, 2011). If the cost of leadership is applied, the power company would be required to competitively price its products. In this case, Hawaiian electric company Inc is a monopoly that is only regulated by Hawaii Public Utilities Commission (HPUC) which means its prices are not subject to
Hawaiian electric company Inc is a subsidiary of Hawaiian Electric Industries which is the major electricity supplier in the state of Hawaii which is also facilitated thorough other subsidiaries; Maui electric company limited and Hawaiian electric light company Inc. The company has been in operation for more than a century which has seen it grow its supply to over ninety five percent of the population. Together with its mother company, Hawaiian electric company Inc employs a workforce of over two thousand people and many residents consider it to be the major electric power company.
This kind of service is only possible where an organization controls majority of the market considering the location of the market. Despite its …show more content…
In this case, power remains unique in the Hawaiian market because of the limited competition. Focus strategy as the name suggests centers on the business selling its products to different markets that it deems have the need for their products. In this case, Hawaiian electric company Inc has already captured the only market available through satisfaction of the market needs. Finally, the cost of leadership means that the company reduces its operational costs in order to have the lowest prices in the market. In the case of Hawaiian electric company Inc, the prices cannot be undercut below its other competitor because they serve two different regions. However, in order to maintain reasonable market prices, the company does not have a redundant workforce and employs new technologies in reduction of wastages to reduce cost of production and distribution (Cecere, …show more content…
The strategies chosen should influence the demand and supply in the market. Where the focus strategy is applied, the business should identify the market needs in order to control the market demand. In this case, Hawaiian electric company Inc has already captured the required market and is in full control through power supply and distribution. Where the differentiation strategy is feasible, the company is required to come up with a unique product for the unique market. This vision was realized over a century ago by the founders of Hawaiian electric company Inc (Daft, 2011). If the cost of leadership is applied, the power company would be required to competitively price its products. In this case, Hawaiian electric company Inc is a monopoly that is only regulated by Hawaii Public Utilities Commission (HPUC) which means its prices are not subject to