Energy market entry / MBA team engagement
Choosing an energy market-entry route
An energy business needed to compare building new import infrastructure with using existing infrastructure. In an MBA team engagement, I tested how pricing, capacity use and investment timing affected the case for entry.
- Business question
- Build new import infrastructure or use existing capacity?
- My contribution
- Scenario and sensitivity analysis to support the team’s recommendation.
The infrastructure choice shaped the investment
The two options required different levels of investment and offered different operating capacity. Assessing demand was one part of the entry decision; the business also needed a viable way to serve customers.
I focused on how much capacity the business could use, the remaining life of the infrastructure and when investment would be required.
Earlier entry depended on capacity and useful life
Existing infrastructure offered a potentially faster path to customers, but available capacity, useful life and switching costs still mattered. Building a new route introduced its own investment and setup requirements. The comparison therefore needed to account for what each option would require over time.
I used scenario and sensitivity analysis to test pricing, capacity use and investment timing. The analysis identified which operating and financial assumptions would need to hold for the team’s recommendation to remain supported.
What each infrastructure option required
- Build new infrastructure
- RequirementInvestment and setup to establish an import route.
- What I examinedHow pricing, capacity use and investment timing affected the case.
- Use existing infrastructure
- RequirementAccess to capacity to serve customers.
- What I examinedWhether available capacity, useful life and switching costs supported entry.
The recommendation and its conditions
The team delivered a market-entry recommendation. I contributed the scenario analysis and explained the operating and financial assumptions supporting it.
The engagement concluded at the advisory stage. Investment decisions and implementation remained with the client.