Developing a Strategic Value Proposition on Organizational Strategy

This consultancy report focuses on developing a strategic value proposition for Npower, an energy company, emphasizing the importance of aligning organizational strategy with market opportunities. It identifies potential market segments through market segmentation and targeting, highlighting the growing demand for sustainable energy solutions. The report evaluates competitive strategies, including Bowman's Strategic Clock and Porter's Generic Strategies, to determine the best approach for Npower to achieve a competitive advantage. Two value propositions are developed and assessed using the Jobs, Pains, and Gains framework. Finally, the report proposes a positioning strategy for Npower, utilizing the 7Ps of marketing mix to effectively communicate the value proposition to target customers, particularly in the context of renewable energy and environmental responsibility. The analysis underscores the need for Npower to adapt to changing market dynamics and prioritize sustainable practices to ensure long-term success.

Consultancy Report
Development of a Strategic
Value Proposition on
Organizational Strategy

EXECUTIVE SUMMARY
It is discussed that an organisational strategic value proposition is helpful to create a
series of actions that can be implemented by the organisation for achieving target customer
attention, smooth business operations and competitiveness in market positioning to achieve
desired goals and objectives. In this regard it presents a strategic value proposition on
organisational strategy of Npower. Potential market opportunities were identified with the help
of market segmentation and targeting that has identified the growing demand for sustainable
energy needs that lower down the harmful impact on the environment. An evaluation of two
market segments is elaborated to provide understanding of the market segmentation and
targeting. Moreover, competitive strategies for positioning were evaluated that consist of
Bowman's Strategic Clock and Porter's Generic Strategy. Along with this, two value propositions
are developed and evaluated with the help of a concept of Jobs, Pains and Gains that can be
helpful to achieve the objectives of target market and the organisation. Finally, positioning
strategy for Npower is developed to communicate the value proposition to target customers with
the help of 7Ps of marketing mix aligned to the positioning strategy for target market.

Table of Contents
INTRODUCTION...........................................................................................................................1
2.0 POTENTIAL MARKET OPPORTUNITES.............................................................................2
2.1 SEGMENTING THE MARKET...............................................................................................3
3.0 DEVELOPING THE COMPETITIVE/WINNING STRATEGY.............................................5
4.0 PROPOSED VALUE PROPOSITION.....................................................................................7
5.0 POSITIONING STRATEGY FOR COMMUNICATING THE VALUE PROPOSITION...10
5.1 MARKETING MIX TO SUPPORT THE POSITIONING STANCE....................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
APPENDICES...............................................................................................................................17

INTRODUCTION
Organisational strategy can be explained as a long-term plan that shows how a business can
grow by properly allocating the resources within the organisation. Strategic value proposition
refers to the values that the company promises to sell or deliver to their clients, so they opt to
purchase their products and services (Barros and Fischmann, 2020). Effective organisation
strategy is integral for an organisation to achieve success. Strategy should not be a lengthy
document of planning but it is a combination of integrated and strong choices that can help an
enterprise to achieve success. The strategic value proposition helps to create a series of actions
that can be implemented within an organisation to achieve customer attraction, smooth
operations and comparative market positioning for achieving favourable outcomes in the
business. The following report will focus on elaborating the development of the value
proposition for The Npower Ltd. The following report will explain various methods by which
organisation can develop an effective value proposition for entering the oil and gas industry. The
requirement for fuel and energy in coming years is to grow for sure. For this the best option for
Npower is to prepare for the production of renewable energy industry too. This report will
present strategic options for Npower to achieve success in the business. As per the views of
Martin the companies must provide answers to certain strategic choices within the industry in
which they want to enter (Carvalho and Madeira, 2020). It includes the answer to winning the
aspiration of Npower, place at which the organisation will focus on, winning strategy of the
organisation and what are the management efficiencies will require. When these answers are
obtained by the organisation and these questions reinforce each other than Npower will definitely
achieve success. For identifying these aspects the report will provide an explanation to the
market opportunities where the company could enter and the target market segment where the
best opportunities can be obtained by the organisation. This report will also provide a
competitive strategy for the organisation to achieve success. In the end it will propose a value
proposition and showcase the marketing positioning strategy of the organisation to achieve
desired goals.
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2.0 POTENTIAL MARKET OPPORTUNITES
The oil and gas companies have witnessed a rise in demands for clarifying the limitations of
producing and supplying energy within their organisation to determine the contribution they can
make to reduce greenhouse gases for attaining organisational goals along with the
Paris Agreement. Rising awareness among the society in regard to the environmental impact
done by oil and gas companies has intensified the role of organisations to restructure their
business model and reduce their negative impact on the society (Martin-Gamboa and et. al.,
2020). The Npower is an organisation that deals in the production and supply of gas and
electricity to businesses that were established to serve customer energy needs/ demand. The
company operated with fuel fired energy power stations, natural gas and coal and now it has
moved on supplying gas and electricity to residential and business customers in the UK. The
company have capability to serve more than 500,000 customers and has its energy and gas
supply outlets at many places across the UK. In the era of renewable energy the use of non-
renewable sources of energy is becoming futile due to this the company must move towards
other sources of energy creation. The use of renewable energy sources in coming years will be a
great deal for organisations to reduce its negative impact on the environment and improve the
level of technology advancement. Npower will be a means to provide better understanding about
the diversity of its organisation and its strategy to develop such ways to satisfy the demand of
customers. The company will focus on expanding its business to provide energy to its clients and
customers at reliable and affordable supply of gases (Biazzo and Filippini, 2021). The company
has the opportunity to enter into the renewable energy sources for which strategic options can be
used by Npower which can be helpful to achieve strategic growth of the business.
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Figure 1: https://www.iea.org/reports/the-oil-and-gas-industry-in-energy-transitions
From the above image it can be explained that oil, gas and coal have the greatest
contribution in emitting greenhouse gases whereas their contribution to electricity generation is
only about 75-80% of their total consumption to produce energy. On the other hand the use of
renewable energy requires fewer resources for producing 5 times more the energy than its total
energy needs. Therefore, Npower could enter into the production of renewable energy in the
organisation that will support technology and environmental growth. There is a lot that the
organisation can do to reduce its impact on the environment by considering their choices and
minimising emissions from oil and Gas operations as its primary focus for improvement.
2.1 SEGMENTING THE MARKET
Market segmentation and targeting can be explained as the procedure to identify the
potential clients of the organisation, choosing the suitable clients to attract and creating value for
those target customers to attract them towards the products or services provided by the
organisation. With the help of segmenting, targeting and positioning process market
segmentation and targeting can be done that can help to identify and attract the prospective
customers (Andaleeb, 2016). The potential clients or customers of Npower can be segmented on
the basis of demographic, lifestyle and geographic positioning where the organisation may use
another method of asking why, what and whom questions. Segmenting is the initial step that
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involves classifying and organising the customers with similar needs and determining their
characters. The customers for Npower can be categorised with the help of firmographic
segmentation which involves customers who embody the same principles.
Segment 1: General Customers
The company could focus on customers who desire to have sustainable development of fuel
and energy for reducing harmful and environmental impacts. It will include the customers who
have the desire for promoting the use of clean/ renewable energy by using technology
advancement and help to improve environmental health too. These market segment customers
will be based on those users who use electricity on a daily basis for final consumption purposes
(Paruchuri, 2019). It will include customers who are potential users, regular users, first time
users, x-users and non-users. It will educate about the products and services to those customers
who desire or intend to buy, have informed interest, aware or unaware choices for the products
and services offered. The segmentation for the aware customers is around 40% of the total
market coverage.
Segment 2: Commercial and Residential Buildings
The second market customers will consist of providing energy to the commercial and
residential buildings. These market segment variables can be considered and evaluated on the
basis of geographic segmentation that consists of 100,000s of addresses across many areas
including ruler, sub-urban and urban. The customers in this segment are mainly the household
and commercial buildings whose emission levels amount to very high levels that will be declined
by Npower supply of energy requirements that will amount to very less emissions and fulfil the
energy requirements of these areas.
Evaluation of Market Segments
Criteria Segment 1 Segment 2
Size
General Customers including the
customers who want to promote
clean energy usage and lower the
environmental impacts and need
technological advancement.
Commercial and Residential
Buildings that have obligation to
use sources of energy to decline
the emission of greenhouse
gases.
Growth Rate The expected growth rate for The expected growth rate for the
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segmenting for these customers
is low, nearly 10-15%.
organisation for this segment is
approx. 40%.
Profit Potential
The global demand for
renewable energy is to grow
from 2020-2050 but this segment
does not witness higher degree
of profits.
The investment in this customer
segment will be highly profitable
due to bulk of operations and
greater demand of the
organisations to go green.
Degree of Competition
The competition will be highly
intense in this field due to the
presence of government
organisations.
The possible competition in this
industry is also high but it
provides higher chances of
growth.
To analyse the information in data that is elaborated can be measured and evidenced with the
help of projected experience growth of the customers and target market that will be helpful in
satisfying the objective of organisation to create values for the customers. The normal customers
cannot be suitable for growing and pursuing the organisational statistics for sustainable
development and supply of renewable energy (Schlegelmilch, 2022). But the customers
including the commercial and residential buildings could be suitable for the organisation to
supply renewable energy because the commercial and residential buildings are the highest
contributors to the declining health of the environment. In these areas the strategy for value
creation for customers can be helpful to achieve success for the organisation.
3.0 DEVELOPING THE COMPETITIVE/WINNING STRATEGY
Bowman's Strategy Clock is a strategic tool that is used by an organisation to strategically
position itself within a given market according to their perceived value and price. Porter's
Generic Strategy is another theory that is used for identifying and evaluating the competitive
strategies to advise success within a particular market area with the help of four aspects (Payne
and et. al., 2020). The pictorial representation of these two strategies is elaborated.
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Figure 2: https://fourweekmba.com/bowmans-strategy-clock/
Figure 3: https://fourweekmba.com/porters-generic-strategies/
It includes differentiation focus, cost focus, cost leadership and differentiation. For this
report Porter's Generic Strategy can be selected because Npower has to face intense competition
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from the external market due to which it can adopt cost focus strategy by which it can target
customers from the commercial and residential buildings. With this the company will be able to
use resources more effectively and efficiently and create optimum processes to lower down
operational cost and achieve cost advantages. Additionally, the company can achieve optimum
performance by eliminating wastage which will help it to supply energy to the customers at
cheaper rates as compared to competitors (GHICAJANU, 2021). This will also help the
organisation to achieve greater competitiveness in the renewable, greener and sustainable energy
industry and increase its presence significantly.
4.0 PROPOSED VALUE PROPOSITION
Value proposition can be explained as an integral component in the marketing strategy of a
company (Payne and et. al., 2020). It mainly provides a declaration of statement or intent that
showcases the statement of the organisation to their prospects by what the organisation wants to
serve to its customers, its operational standards and what values does the organisation bring. It is
important to create the value proposition of a company because it helps to differentiate its
products and services from their customers and justify why they are superior as compared to
others. The value proposition canvas is a useful tool that can be used by an organisation to ensure
that they satisfy their customers’ needs and desires by creating a value proposition for the
organisation. The value proposition Canvas is integral because it has to analyse the product in a
given market and identify the needs for the organisation to develop or define new offerings for
the market (Leroi-Werelds and et. al., 2021). B2B commerce can be explained as the activities of
an organisation to sell its products and services to other organisations that will be done by
Npower to supply sustainable, renewable and green energy output to the commercial and
residential buildings. The initial phase of generating an organisational value proposition is to
develop the profile needs of the target market. For doing so, a method can be used to focus on the
needs of the target market by applying the concept of jobs, pains and gains of the target market.
Value Proposition 1
Jobs Pains Gains
jobs Product/
services
Pains Pain
Relievers
Gains Gain
Creators
Supplying Continuous Authenticity Focusing on Decrease in Decline in the
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clean and
green energy
on consistent
manner
production,
regular
maintenance
and no
shutdown
phase of the
organisation.
and
reliability of
energy
production
and supply
using
renewable
sources of
energy and
continuous
energy
backup
negative
impact on
environment
emission of
greenhouse
gases like
decline of
more than
20000 metric
tons of
carbon.
Services and
customer
support on
timely basis
24/7 customer
support and on
time servicing
to the
customers
Require
fixing and
restoration
after
disasters
Services can
be prompt
restored
Promote the
growth of
using bio fuel
Upgradation
and
modernization
of technology
Increasing the
production of
renewable
and green
energy
Creation of
renewable and
green energy
sources like
solar, hydro
etc.
Declining
energy
supply due to
unfavourable
conditions
Using backup
supply
sources in
unforeseen
circumstances
Provide
electricity
storage and
energy supply
to remote
locations
Increasing
innovative
energy
storage units
Finding more
sustainable
and cost
effective
ways to
create energy
Investment in
technology to
make cheaper
energy sources
like biogas and
geothermal
energy.
Requirement
of huge costs
Innovating in
technology
advancement
for low cost
energy
supplies
Cheaper
facilities
Continuous
research and
development
Value Proposition 2
Jobs Pains Gains
jobs Product/
services
Pains Pain
Relievers
Gains Gain
Creators
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Creation of
source of
energy that
are renewable
and green and
lowers down
the negative
impacts on
environment
Innovation in
technology is
such as
geothermal
power plants,
hydroelectricity,
solar power,
wind, biogas
and other
renewable
sources of
energy.
Requirement
of huge cost
and
investment
for
establishing
such units
Innovating
ideas that use
low cost like
biogas,
geothermal
plants, etc.
Production of
cheaper
alternatives
of energy
such as tidal,
wind, biogas
and many
other.
Innovative
ideas,
creativeness,
research and
development
Investment in
producing
green and
clean energy
lower down
the negative
impact on
environment
The use of
energy sources
such as
hydroelectricity,
geothermal,
tidal, wind,
biogas, solar
energy etc.
Establishing
new units
may lead to
natural
wildlife
degradation
Using the
ideal units or
plants that
are already
established
and are left
overruled.
Powering the
use of
dumped sites
for restart
Rising the
level of
renewable
energy
production
From the above value propositions given, the first one can be chosen as the most
appropriate for Xpower because it helps to satisfy and fulfil the needs of the target customers' as
well as it helps to achieve the organizational goals. It can be identified from the first value
proposition that the jobs in the first value proposition are able to satisfy the requirement of target
customers specifically as well as provide growth opportunities to the organisation (Carrasco-
Farré and et. al., 2022). It focuses on supplying green and clean energy consistently to the
customers through regular maintenance and maintaining energy backup so that its reliability and
authenticity can be maintained. Moreover, it is explained identified from the value proposition 1,
that it also helps to lower down the greenhouse emissions up to 20,000 metric tons by its
operations which will help the commercial organisations to achieve environmental goals. Value
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