Strategic determinants of development in the energy services industry

Authors

DOI:

https://doi.org/10.33987/vsed.3-4(74-75).2020.99-108

Keywords:

strategic determinants, energy services industry, ESCO-enterprises, ESCO-contracts, the Нerfindahl-Hirschman method, rivalry between existing competitors

Abstract

The subject of the study is a theoretical provisions and practical recommendations for the development of the energy services industry on the basis of strategic determinants. The task of the study is to analyze the determinants of the energy services industry and identify the most influential of them, which are crucial in terms of strategy formation. The methodological basis of the study was a systematic analysis, which was used to assess the energy services industry and determine its development potential. The article reveals the functions of enterprises in the energy services industry. The relationship between the development of ESCO-enterprises and the state energy efficiency policy has been established. The main stages of development of ESCO-enterprises have been identified. The dynamics of the number of ESCO-contracts and the rating of the ESCO-mechanism by regions of Ukraine are analyzed. The structure of the energy services industry from the point of view of its strategic determinants is considered: the threat of substitution, the influence of suppliers, the influence of buyers, the threat of entry of new firms and competition between existing competitors. The segments in which the energy services industry is developing have been identified and characterized: the budget sphere, the housing sphere and industry. The potential of each segment in terms of industry development has been identified. The factors restraining the development of the energy services industry are systematized. Using the market concentration ratio and the Herfindahl-Hirschman index, it was found that the energy service market is moderately concentrated. Based on the model of the main types of the market, the conformity of the quantitative and qualitative characteristics of the energy service market to the signs of monopolistic competition has been determined. According to the results of the analysis, the greatest influence of the strategic determinant «rivalry between existing competitors» was determined. Recommendations for the formation of competitive strategies of energy service enterprises are given.

Author Biography

Inna Kuznetsova, Odessa National Economic University

Doctor of Economics, Professor, Head of Management of Organizations Department

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Published

2020-10-27

Issue

Section

Management and business administration