The promise of greener pastures?
Increasing concerns about climate change, energy security, and the rising cost of petroleum-based fuels have led to the promotion of bioenergy as a more desirable alternative. For a major global manufacturer of agricultural equipment, it was clear that its future would be closely tied to developments in the bioenergy and biofuels industry; indeed, its share price had increased significantly based on the promise of the biofuels sector. But the bioenergy “solution” is far from a certainty, as issues ranging from the food vs. fuel debate to deforestation cloud the industry’s prospects. What strategic path should the company take, given the uncertainty in this critical industry?
Reaping the benefits of scenario planning.
DSI helped the company analyze the external environment across three continents (home to the most important bioenergy markets) and develop an overarching strategic direction in the bioenergy area for the next decade. This process also provided a framework for testing current strategies across key market segments, and addressed context-specific issues for the company’s international businesses. Based on the analysis, the company set up critical strategic partnerships to serve new markets and new segments, created an internal unit focused on bioenergy, and formulated a long-term industry vision. The result has been a more robust presence with increasing market share and improved positioning of the company in the bioenergy sector.