An Analysis of the Development of a Competitive Value-Based Strategy for Aquion and the Leadership of Bill Bratton Essay

Use Dranove and Marchiano to develop a competitive strategy for Aquion using the value-based strategy approach. What do you think they should do about prices? Also, how do you propose they go about sustaining their competitive advantage in the long run?Aquion is well positioned as a startup company. The technology offered by the startup is not only ingenious and one-of-a-kind, but extremely valuable to utility industry players as it represents a low cost alternative to what has been available nearly since electricity was harnessed. As the case study states, the new battery technology developed by Whitacre promised significant price and performance advantages over other battery technologies across a wide range of stationary storage applications (Eisenmann Kiron, 2012, 1). More specifically, the energy storage using Aquion technology could be priced at less than one center per kilowatt hour, which is fifteen times less than lithium ion storage and just one percent of the price of lead-acid- battery storage. Clearly, the technology offered by Aquion offers the potential for a competitive advantage in the market of utility and non-utility energy storage. But how can this advantage be harnessed? The value-based strategy approach, as discussed by Dranove and Marciano (2005) provides a great deal of insight into how to both create and sustain a companys competitive advantage. As the authors state, To be successfully positioned, your firm must offer a value propositionthat surpasses what your rivals can offer (177). In other words, the value-based approach to creating a competitive strategy is provide a value to potential customers that cannot be duplicated by competitors. Thankfully, it appears that Quion is in just the right place to do so. According to the case study, The potential value of a low-cost storage solution for the United States aging electricity grid could be measured in the hundreds of billions of dollars, and that the same attributes of the power grid also meant that a low-cost, reliable storage solution would be crucial...

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