Meridian energy limited case study

  Introduction: Meridian energy limited is one of the leading power companies in New Zealand. It is also one of the companies which are listed on both NZX and ASX. The company was established twenty years ago on 16 December 1998. Meridian energy mainly works in the electricity generation and electricity retailing. The headquarters of the Meridian energy limited is in Wellington New Zealand. The company is generating power from hundred per cent renewable sources. Meridian energy limited makes the largest proportion of electricity in New Zealand. Meridian was one of the three electricity generating companies, breakups of the electricity corporation of New Zealand in 1988-89 taking over the Waitaki River and Manapouri hydro scheme. The company have seven hydropower stations and one wind farm in New Zealand, four wind farms in North Island and two wind farms in Southern Australia that generate electricity and sells into the wholesale market. It is one of the three primary electricity generators to generate electricity from renewable sources.   The company also purchase electricity back from the wholesale market and sells it directly to consumers. The company strive for clean energy for a fairer and healthier world. The business of the company is made of wind, water and sun. Meridian energy limited is excited about clean energy and its benefits. The company approach generation responsibility and with integrity in alignment generating a hundred per cent from renewable sources.   This year meridian energy limited achieved best-ever financial result by generating energetically into favourable wholesale market condition by focusing on growing customer base and encouraging the retail brands in Australia and New Zealand to build customers loyalty.   Report: Meridian energy limited invested in the technologies which can generate electricity at any given point in time. The primary purpose of meridian energy limited is to provide clean energy for the fairer and healthiest world. The business outcome of any company is based on the defining road map, customer experience, and performance, meeting experience, operational efficiencies and continuous improvements. Meridian energy limited defines road map such as putting the customer values first and sustainability leadership. The sustainability goals of meridian energy are SDG13 climate action and SDG7 affordable and clean energy. The meridian energy limited strategies are well defined, and the company work on these strategies for business outcomes. Following are the strategies followed by Meridian Energy Limited:   Champion the benefit of a competitive market: It covers the competing vigorously, leadership in sustainability in New Zealand and Australia. It also has major focus on wholesale liquidity.   Grow New Zealand retail: More straight forward system, reduced cost, faster adaptation, rent less focus on customer experience and deployment of New Zealand most loved energy brands. Support retail growth and protect our generation legacy: it demonstrates the contribution of hydro to New Zealand 100% renewable aspiration, maintaining best in the class generation and best placed renewable energy pipelines.   Grow overseas earning: Increase the number of customers in Australia and maintaining a vertically integrated position. Flux global growth. Meridian energy limited has significant increases in customer experience. The company increases the customer base in New Zealand by 4% to more than 300,000 customer connections. In Australia, the customer base has increased by 36% to around 132,000. This year the company gives outstanding customer services.   Internal and external factors: Internal factors that affect the growth of Meridian energy include the company mission, board of structure, employees and company culture.   The mission of Meridian energy: The purpose of Meridian energy limited is providing clean energy for a fairer and healthiest world.   Board of structure: Diversity of perspective is essential. Meridian recruits the board member with a range of skills and experience. Chris Moller joined the meridian board team in 2008 and has been a board of director in Meridian since 2011. He is a great leader of the meridian company; he has been a steady hand as the company evolved through the mixed ownership model to become the New Zealand’s largest listed company and most successful company in the electricity sector. Boards play an essential role in oversees company activities. Strategise days and regular meeting allow the board to share the thoughts, challenge management (Meridian Energy, 2019).   Role of committees: Committees support the board by providing details on specific issues and having subject matter experts offer insight and advice. The committees and the board as a whole, cover the spectrum of resources on which company depend for business success.   Role of the executive team: The Company made changes in the executive team in the second half of the year. Tania Parmar joined as chief people officer in Meridian. Tania adds further skills to the team in leadership development, health and safety role in banking and energy industries.   Financial planning is not done correctly and efficiently. The current asset ratio and liquid asset ratio suggest that the company use the cash more.   There is a gap range in the products of Meridian energy limited. The lacks of choice can give a new competitor foothold in the market.   The profitability ratio and net contribution percentage of meridian energy limited are below the industry average.   External factors: The demand for the highly profitable product is seasonal in nature and any unlikely event during the peak, the season may impact the profitability of the company in short to long term.   Shortage of skilled workforce in a particular global market represents a warning to the steady growth of profits of Meridian Energy Limited in those markets.   No regular supply of innovative products: Over the year company has developed various products, The amount of new products is not consistent, this leads to high and low swing in the sales number over some time(Fern Fort University, 2019).   Government green drive opens various opportunities for procurement of Meridian energy limited products by the state as well as federal government constructors.   Operational strategies: Meridian energy limited is auspicious at the execution of new projects in Australia and New Zealand. And these new projects give excellent returns on capital expenditure, and the company builds new revenue streams. (Meridianenergy.co.nz, 2019).   Meridian energy limited is innovating new product services. The new product brings not only new customers to fold but also give old customer a reason to buy Meridian Energy Limited products.   The Meridian Energy Limited is building the economies of scale so the company lowers the products fixed cost per unit.   Meridian energy limited uses various strategies to tackle the treated product services by the service-oriented, rather than the product-oriented. The company understand the core needs of the customers rather than what the customer is buying.   Meridian energy limited can handle the intense rivalry among the existing competitors by building a sustainable differentiation. The company collaborate with the competitors to increase the market size and rather than the small market. (Fern Fort University, 2019).   Meridian energy limited has built a reliable and excellent distribution network that can reach majorly of its potential market. The company track a complete record of developing new products.   Reliable suppliers- It has active, reliable suppliers of raw materials. These enabled the company to overcome any supply chain bottlenecks.   Meridian has a successful track record integrating complimentary firms through mergers and acquisition. It has successfully integrated several technology companies in the past few years to streamline its operations and build a reliable chain.   Strong cash flow: Meridian energy limited has steady free cash flow that provides resources in the hand of the company to expand new projects.   Superb performance in new markets- Meridian energy limited has built expertise at entering the new markets and making a success of them. The expansion has helped the organization to grow new revenue and diversify the economic cycle risk in the markets.   High level of customer satisfaction: The company is dedicated with customer relationship department has able to achieve a right level of customer satisfaction among present customer's satisfaction among current customers and good brand equity among the potential customers.   Opening up of new markets for Meridian energy limited because of government agreement- the adoption of new technologies standard and government trade and cooperation has provided the Meridian energy limited to an opportunity to enter a new market.   Stable cash- Free flow provides the opportunities to invest in adjacent products segment. With more cash in banks, the company can invest in new technologies and as well as a new product segment.   Decreasing the cost of transportation because lower off shipping price can also bring down the value of Meridian limited products thus provides an opportunity to the company, either the increase in profitability or pass on the benefits to the customer to gain market share.   New Government environmental policies create new opportunities a level of playing field for all employees in the industry. It represents the great achievement for Meridian energy limited to drive success in new technology and gain market share in the numerous new product category.   Conclusion: Meridian energy limited is a leading company in the power generating industry. They have built a reliable distribution network, and that can help to reach the potential market. It is relatively successful in execution of new projects and they are making requisite expenses in building new revenue streams. Meridian energy limited is performing well in market; the expansion has helped the organization to create a new revenue stream and diversify the economic risk cycle in the markets. Meridian energy is having a good relationship with their customers and they are achieving satisfactory reviews from their customers, On the other hand side we can see that the company is not able to tackle with the new challenges present in the market. The company is handling these new threats by innovating new products and services. Innovations of new products attract new customers as well as old customers to buy Meridian energy products. Meridian also handles bargaining with suppliers by building an efficient supply chain with multiple suppliers. In this report, the Meridian energy limited formulates various strategies for enhancing the competitive advantages and long term profitability in industries. This is only reason Meridian energy limited listed in the 2019 gold award list in the Australian reporting awards (Arawards.com.au, 2019).