The following report elaborated the business model of Power Ledger that comprised nine building blocks explaining the business operations in short. The business model revealed that the primary customers of the company consist of government agencies, private individuals, and Business Corporations. The company is focusing on providing clean energy to every community at an affordable price. The report also highlighted some critical success factors and downside risks. The major risk is the legal obligation and regulatory risks due to the complex procedure. Based on the determined risk, some recommendations have also been provided, such as:-
A business model is an elaborated and well-conceptualised structuresupporting an organisation and elucidating the modus operandi of the company, how it operates, its values, key partners, and much more. The following report is on the business model deconstruction of "Power Ledger.”It discusses the business model canvas, key relationships, critical success factors, and risks associated with the company. In addition to this, some recommendations have also been provided in the end.
Power Ledger is a blockchain-based energy trading organisation that has a decentralised process for selling and purchasing renewable energy. The company came into existence on August 11, 2016, and very soon became a leading organisation that utilizes Eco-chain technology for storing energy reading. It helps the energy retailer to manage their daily demand and supply. In addition to this, its platform serves a mode for the retail investors to invest in large scale renewable energy projects, such as solar farms and batteries. In 2017, the company opened its sale and within three days over 100 million tokens out of which 25% were sold in the first hour. The company raised $17 million AUD. In the same year, the company was awarded two research project of value over $ 2.5 million AUD. In addition to this, seven partners also contributed $8 million AUD for the project making it the second largest funded program. The Australian government also provided $50 million grant for innovative research and project.
Power Ledger's management is focusing on empowering communities and individuals to co-create the future's energy underpinning the development of resilient, carbon-free, and personalised power system for the people. Based on this mission, the company's business model is based which is explained below.
· National Lifestyle Villages
· Ocean Energy
· Vector Energy
· Tech Mahindra
· Murdoch University
· Curtin Energy
· Greenwood Solutions
· Peer-to-peer trading of regulated electricity for individual users.
· Electricity trading across a grid and manage the demand and supply of electricity.
· Monetising carbon and renewable energy.
· To provide world community a tool to explore a new world for energy
· To provide clean energy available to all at a very affordable price.
· Personal assistance
· Client Eccentricity
· Customer Service
· Advisory and assistance
· Large investment sources
· Innovative team and ideas.
· Government Grants and subsidise services
· PowePort and Grid Platforms
· Social Networks
· Call Centers
· Charge, Fee, and Taxes
· Material and types of machinery
· licensing fees
· Operational Cost
· Marketing and sales
· Token Sales
The above diagrammatic representation comprises nine building blocks representing some sort of business aspects of Power Ledger. The above building block helps in understanding the overall functioning of the company. In addition to this, it also focuses on earning high returns by putting fewer efforts. Furthermore, the major projects of the company are timed for high values and returns. The onshore projects are characterised by a bit of flexibility and value generating. There are nine building blocks of the business plan that have interrelationships with one another (Sikorski et.al, 2017).
Power Ledger has numerous key partners that are mostly investors and providing the required funds to the company to carry out innovation and research and development. These partners are helping in maintaining internal and external relationships. These are also a part of the board of the directors that decides the strategies for the company (Tarhini, et.al, 2015). In addition to this, the government agencies are also having some sort of relationships with the company as they have invested $50 million AUD for the development of clean energy devices and renewable energy project like solar farms. These interrelationships are linked to the revenue stream of the company (Agarwaland Ansell, 2016).
These are the factors that are leading the organisation's growth. These factors help in achieving organisation goals. Power Ledger is a newly-formed start-up. However, in a very short time, it has achieved huge growth (Pilkington, 2016). The factors that lead to its success are:-
Innovation: Being a startup, it is making huge success on the basis of its innovating ideas of providing affordable clean energy to everyone. In addition to this, the company is not only catering to individual buyers but also to the government and business corporation. By making use of innovation, the company is achieving its goals and objectives.
Unique Selling Prepositions:the research and development is the success factor for Power Ledger. It provides a competitive advantage to the organisation as the products are well-differentiated and are one of their kinds. In addition to this, the blockchain transaction method is another unique selling quality of the company.
Branding and Marketing: the company is completely focused on branding and marketing via word-of-mouth and social media. However, much of such efforts are focused on social media. Other marketing media should also be considered for more growth (Pilkington, 2016).
For a better understanding of the business model, Power Ledger had been taken. On the basis of the whole study, it was determined that business organisations have numerous key relationships and partners. Each has its own importance. For the newly formed startups, such relationships are very crucial. Power Ledger is one such example and is doing pretty much well in its field as large investments are coming for the company from private as well as government agencies. In addition to this, all the success factors and associated downside risks had been studied and recommendations had also been enlisted.
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