The New Energy Paradigm: An Analysis of How a Start-Up is Leveraging Technological Capabilities to Gain a Competitive Advantage in the Energy Industry

Abstract

The energy industry is currently experiencing challenges due to changing demands for new energy sources and new energy services, as a consequence of increased focus on sustainability and advanced technology. This poses opportunities for new entrants into the energy market, which for many years has remained unchanged. As many other established industries in society, the energy industry is challenged by technological forces, which introduce many changes in the industry. Hence, this thesis focuses on investigating how a start-up can utilize their capabilities to be competitive through the digitalization of the energy industry. Within our increasingly digital world, Big Data and the Internet of Things are two known buzzwords which represents the way in which our world is becoming smarter and more connected. The case company, Watty, has applied these technologies to position itself within a branch in this industry; the energy management field. With a pragmatic research philosophy and an abductive research approach, we have examined the case company and the energy industry with in-depth interviews, exhaustive industry reports, internal Watty documents and observations. With the obtained data, we have uncovered how Watty has established first mover advantages and how the company can advance these further in order to establish a strong position within the energy management field. Throughout our thesis, we have used a conceptual framework adapted from the strategic framework originally presented by Suarez and Lanzolla (2007) and focused our attention on three enablers that contribute to first mover advantages; firm-level enablers, isolating mechanisms and environmental-enablers. Throughout our research we have discovered that there is a smooth market – and technological development pace within the energy management field. Watty´s advanced technological capabilities has resulted in technological leadership and allow Watty to position themselves as information providers as the company provides entirely new and detailed energy insights. This position is an important aspect of the company´s long-term strategy towards new consumers and other companies. With highly advantageous capabilities, the company is qualified enough to partner up with other companies, and ultimately grow a strong and sustainable consumer base.