Hassan Sherwani ROLE OF SALES AND MARKETING IN ... - Oulu

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62 European countries with Nordic energy market and as discussed earlier, Finland has a major role to play in this inter-dependence of energy markets. Fuel price is a concern around the globe and it has risen sharply in recent years. The global market price of coal, gas and oil has a significant effect on the price of electricity. The rise in the global market price of oil clearly reflects on the price of natural gas. The price of coal has been hiked by the price of oil and the high demand in Asian market. The price of oil is affected by the general global economic situation, speculative trading and regulation by OPEC countries (Carden, 2013) 5.2 Analysis for Middle Component The changing trends lying at middle component discussed earlier and shown in figure 8 in chapter 3.4 can affect both macro and micro environment. There are some examples in retail and telecommunication industry when even governments have changed their policy due to varying business trends. On the other side, companies often change their strategy with the new business trends in order to keep up the pace and innovate against their competitor. The case company is not fully applying these business practices however; it will be interesting to see the extent of implementation in the case company by the analysis of these components. 5.2.1 Transformation from Monopoly to Internationalization As discussed earlier, electricity distribution remained as monopoly even though energy business liberated in Europe in mid 90s. Though companies are having international operation yet distribution companies keep the lion’s share for them and therefore, free market concept is not ideally practiced in electricity distribution scenario in general. Monopolistic behavior may be true because effective competition would demand that opponent companies duplicate wire network of one another. This practice would be unproductive and would literally kill innovation within energy sector (Borenstein & Bushnell, 2000). This practice is seen within case company. Finnish energy market is open for competition from foreigner companies. This however, does not affect much to municipality based <strong>Oulu</strong>n Sähkömyynti. In broader sense, startups cannot afford to have a big power generation system and other key operations to compete the case company.
63 In other words, the market is free for competition but, there are fewer resources for other companies to come into industry to challenge. In modern business competitive age, business models in energy industry have changing trend from cost effectiveness towards service orientation. Case company is of no exception. There are socio-economic concerns for management such as strategies for reducing carbon dioxide emission in the atmosphere and increase of efficient distribution that have recently made great impact on energy industry. However; it is technological innovation with more value offering capabilities (internet and computing) that has the potential to enhance degree of internationalization for company. Internationalization is challenging for company policy makers to keep a check whether deployed laws and regulations stop innovation in development of this business. Moreover, it is important to note that transformation trend in models need support of government made policies. In Europe including Finland, there has been a trend to outsource some of non-core functions such as electricity network construction, maintenance, and fault repair (Aminoff et al. 2009). This has enhanced the process of internationalization through relationships among electricity distribution companies and service suppliers however; it is only limited to service sector. As service sector is still in process of development globally therefore, distribution companies and service providers need relaxation in government policies and regulations (Makkonen and Olkkonen, 2012). On the other hand, due to the liberalization of the electricity markets most of European users and especially Nordic electricity users are free to acquire their electric energy from the supplier of their choice, while distribution system operators act in a regional monopoly (Selonen, 2010). It is believed that monopoly never let innovation cherish because one company has all the power for the market and somehow it controls the whole industry in that particular region. In that sense, monopolist behavior has ended because many firms are operating internationally. It must be kept in mind that organizations compete not only for customers and resources but also political power and institutional legitimacy. This idea of Institutional isomorphism is given by (DiMaggi & Powell, 1983) and this concept fits energy market including <strong>Oulu</strong>n Sähkömyynti Oy where companies want to be competitive by having economical production and service tools. On the other hand,
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OULU BUSINESS SCHOOL Hassan Sherwan
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3 CONTENTS Abstract Contents Figure
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5 Figures Figure 1: The scope of th
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7 1 INTRODUCTION 1.1 Introduction a
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9 Electricity industry used to be c
Page 11 and 12: 11 Monopoly: A market with a single
Page 13 and 14: 13 2 RESEARCH CONTEXT This chapter
Page 15 and 16: 15 produced but, resources to gener
Page 17 and 18: 17 through bioenergy largely in the
Page 19 and 20: 19 framework. There is a need to re
Page 21 and 22: 21 the companies make themselves en
Page 23 and 24: 23 Monopoly Traditional Model Value
Page 25 and 26: 25 once a company at local market a
Page 27 and 28: 27 It is vital to notice that these
Page 29 and 30: 29 In the global arena, companies m
Page 31 and 32: 31 known as Uppsala Model and is wi
Page 33 and 34: 33 vital part so the parties must a
Page 35 and 36: 35 provides to the company, in the
Page 37 and 38: 37 way of achieving this goal is to
Page 39 and 40: 39 Figure 7: The Emerging Concept o
Page 41 and 42: 41 who actually creates values and
Page 43 and 44: 43 value of the organization in its
Page 45 and 46: 45 being an extension to resource b
Page 47 and 48: 47 knowledge management process is
Page 49 and 50: 49 widely agreed on the negative ef
Page 51 and 52: 51 need to be coordinated and consi
Page 53 and 54: 53 responsibilities, and of the int
Page 55 and 56: 55 is equally important to manage i
Page 57 and 58: 57 All these four stages are follow
Page 59 and 60: 59 5 ANALYSIS As there was a brief
Page 61: 61 company’s individual needs irr
Page 65 and 66: 65 to seek more control in their en
Page 67 and 68: 67 themselves, who may be capable o
Page 69 and 70: 69 to enhance innovation (Pomeda &
Page 71 and 72: 71 Marketing is responsible for dev
Page 73 and 74: 73 Customer satisfaction is conside
Page 75 and 76: 75 clear picture of the role and co
Page 77 and 78: 77 more and more companies operatin
Page 79 and 80: 79 What level of integration betwee
Page 81 and 82: 81 There is a good opportunity to i
Page 83 and 84: 83 internationalization in Finnish
Page 85 and 86: 85 chaos within the company and man
Page 87 and 88: 87 In this thesis work, though the
Page 89 and 90: 89 described by Valocchi et al. (20
Page 91 and 92: 91 Cavusgil, S. T. (1980). On the I
Page 93 and 94: 93 Henry, A. (2008). Understanding
Page 95 and 96: 95 Metaxiotis K, Ergazakis K and Ps
Page 97 and 98: 97 Tykesson, D. and Alserud, M(2011
Page 99 and 100: 99 APPENDICES Interview Questions:
Page 101: 101 Are you familiar with va
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Hassan Sherwani ROLE OF SALES AND MARKETING IN ... - Oulu

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