Renewable Energy Adjacent Market Analysis & Opportunity Assessment

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Problem:

A long-time Beacon client identified renewable energy as an attractive adjacency for the company. The client team identified four market segments it believed could provide the best near-term market entry points: Energy Management (Micro-grids/Smart-grids), Solar, Wind,  and Biomass.  Our client asked Beacon to assess the potential synergies between its capabilities and customer need, and investment in each segment and to force-rank addressable opportunities in order of attractiveness. Beacon's objective was to help the client focus scarce business resources on the most attractive entry points to shape and win new customer markets.  Additionally, Beacon identified and profiled specific near-term opportunities for the client to pursue in each market segment.

 

Approach:

Beacon's opportunity assessment included a four-week scan to identify potential federal customers within each segment, followed by a deep-dive into top-tier customers to assess addressable opportunities.

Phase I and II - The client briefed Beacon on the specific functional capabilities it believed it could leverage in micro-grid, biomass, wind, and solar industries.  The client was able to set parameters on the types of opportunities it wanted to pursue in terms of size, scope, and timing, and discuss hypotheses regarding its go-to-market strategy.  Phase I continued with an exhaustive review of all publicly available, open-source information with the collision of opinion from the analyst community, including investment analysts, industry-watchers, journalists, and academics.  Secondary research included a thorough analysis of Stimulus Package funding streams to identify which federal agencies were receiving allocated ARRA dollars.  Beacon then conducted a deeper dive into the most attractive potential federal agency customers to identify and profiled specific client-addressable opportunities.  Over an eight-week engagement Beacon interviewed >170 market participants, including analysts, industry organizations, regulators, customers, and competitors to assess and force-rank potential client opportunities.  All research was conducted in "blind" fashion in order to collect unbiased market feedback and opinion.  Beacon engaged with the client's core team on a weekly basis to brief its progress and provide the client an opportunity to focus or redirect Beacon activities based on information uncovered.

Phase III - Beacon assessed client capabilities and objectives against market characteristics to force- rank the attractiveness and viability of each potential adjacent market opportunity and generated recommended market entry strategies and tactics for the client.

 

Results:

Beacon identified two of the potential market segments as most attractive based on opportunity size, growth potential, competitive landscape, and strong synergies between customer needs and the client's core capabilities.  Additionally, Beacon's assessment concluded that the client would likely need to explore partnership or acquisition to build a reputation as an energy solutions provider or systems integrator.  These findings led to a second project in which Beacon identified and force-ranked potential client partners.