||For almost a century, as industrial development and population growth, unrestrained use of fossil fuels, and large-scale deforestation by burning, which produce excessive greenhouse gases, causing global warming and climate change. The author of "The world is flat", Thomas Friedman calls this "the Energy-Climate Era". To confront the crisis of global warming, energy shortages and population explosion, the human need to start a new wave of green energy revolution. In the trend of globalization and regional economic integration, the cross-strait relation has come to a turning point. Taiwan is standing at a critical position, must properly cope with the new era.|
This case study is to explore the business strategies of a Taiwanese engineering service company in response to the Energy-Climate Era. First, focusing on the case company's top management team and its role in corporate group, to analyze the existing strategic position and business model developed since its establishment. Then, to study the case company’s external environment (including globalization and regional economic integration, Energy-Climate Era, China's twelfth Five-Year-Plan and Taiwan's economic policy) and engineering services industrial environment (including market segmentation and market volume, Key Successful Factors, and Five Forces Analysis). Finally, in-depth analysis of case company's internal resources, capabilities and core competences, to summarize the case company’s internal strengths and weaknesses, and external opportunities and threats, SWOT matrix analysis and strategies formulation.
The study results are summarized as follows:
First, the case company, with the support of corporate group and their own efforts, is now an integrated engineering company with four core businesses - environmental engineering, biotech engineering, electrical & mechanical integration, and operation & maintenance; and with more competitive advantage in the steel industry and water treatment engineering.
Second, the case company’s strategic positioning adjustments in response to the "Energy-Climate Era" are: (1) to consolidate existing core businesses; (2) to establish core competences in order to develop related markets of petrochemical and other industries or areas; (3) to establish core competences and business model innovation in order to seize the white space of multiple water resources development, green energy and energy saving engineering.
Third, the case company’s total of seventeen strategic programs can be summarized into four categories: (1) to secure the business of both inside and outside of the corporate group; (2) to integrate resources in order to enhance competitiveness; (3) to strengthen research and development of water technologies; (4) to develop air pollution and energy saving technologies. Each project department, according to their engineering professions, should work out and implement detailed action plans, which are adaptable to external situations, to integrate advantages of the three capabilities - "professional", "project management" and "financial management".
Fourth, taking wastewater reclamation and energy saving projects as examples, to explore and elaborate innovative business model for case company’s reference; and to provide four recommendations for organizational restructuring and three proposals for facilitating the implementation of business strategies.