Fuel Cell Energy: Is China the Right Market?
This case involves a study of a potential market entry into China. FuelCell Energy (FCE) manufactures stationary fuel cells, or DFCs (Direct FuelCell®), used to generate electricity in buildings or at power generation parks/facilities. The protagonist, Tom Keith, is the Vice President of International Sales for FCE. He has just returned from a strategic planning meeting focusing on the Chinese energy market. At the meeting, Tom was asked to determine whether or not the Chinese energy market was a good strategic fit for FCE and, if so, whether now was a good time for FCE to enter that market. As a case to determine timing and strategic fit of a new market entrant, the discussion addresses the various issues that Tom must consider in order to make such a determination.
- Conduct an environmental analysis to determine the “strategic fit” of a US fuel cell manufacturer in China.
- Examine key emerging trends in the Chinese energy market to determine their potential impact on a US fuel cell manufacturer.
- Perform a risk assessment for a US fuel cell manufacturer considering entering the Chinese energy market.
- Recommend an entry mode for a US fuel cell manufacturer entering the Chinese market.
- Determine market entry timing for a US fuel cell manufacturer considering entering the Chinese market.
- Make an entry choice decision for a US fuel cell manufacturer considering entering the Chinese market.