HedeDanmark: Analysis of potential activity increase on the German Energy Market

Jacob Egholm Lyngsoe

Student thesis: Diploma thesis


This thesis is developed to assist the Danish company Hededanmark (HD) and their German subsidiary Heidegesellschaft (HDG) in preparing for an author-suggested activity increase in the German energy industry. The main problem, which ultimately captures the essential purpose of this report, is; “How is the German market potential for HDG likely to develop in the years to come, and which factors will be key drivers of this development? And how can HD & HDG improve their approach to developing strategies to ensure profitability in their foreign subsidiaries?” The report has prioritized to analyze the macro environmental factors that are believed to have the largest impact on the future development of the German energy industry. These macro factors include; the Political & Legal-, Economic-, Social & Cultural- and Technical environment. The findings from this analysis will then be applied onto an impact and probability analysis, as this offers HD & HDG an easy overview of which uncertainties to prioritize making contingent strategies for. Next, the thesis moves on to a market and competitive analysis of the two submarkets electricity and heat generation. The market analysis includes historic data and forecasts on future development, also weighing in the previously revealed uncertainty scenarios from the above macro analysis. Included in the market analysis is a comprehensive discussion on the competitive environment that HDG can expect to face, if they decide to go ahead with the suggested activity increase. At the end of this chapter, the author has enclosed a high-growth market risk assessment, which also assists in limiting the risk of unforeseen scenarios surprising HDG, should they choose to enter this market. The final sub-analysis will initially focus on a micro level analysis of HD’s current assets and competences, in an attempt to reveal competitive advantages, which should be thought into the development of a market specific strategy for this proposed activity increase. Once this final piece in the puzzle has been unveiled, the report moves onto the actual recommendation of strategic options available, and which of that is considered most advantageous for the potential task at hand in HDG.

EducationsGraduate Diploma in International Business, (Diploma Programme) Final Thesis
Publication date2014
Number of pages135