Corporate Finance As a Manufacturer Term Paper

  • Length: 2 pages
  • Subject: Engineering
  • Type: Term Paper
  • Paper: #41747055
  • Related Topics: Finance

Excerpt from Term Paper :

However, in such a case, USUS would still maintain its competitive advantage for a considerable time, as its technology is already tested and working, while the others are in the development and marketing process. The advantage of unique technology is therefore a unique position in a market where demand is rapidly increasing as energy providers continue to look for alternative sources of power for their clients.

In terms of its nearest competitor, the company's technology also places it in a favorable position in terms of earnings. Green Chemical Corporation for example has shown a decrease in its market share and a rise in its debt level. This has depressed earnings. USUS on the other hand has several products creating a variety of income streams. In addition, it is running at full capacity to produce UF6. Thus, the company is able to maintain its 30% market share in shipments, with the capacity to expand should it choose to do so.

In its current form, USUS has a significant strategic advantage in the market in comparison with its competitors. There do not seem to be any particularly threatening factors, either from the competition or the market. Hence, it is believed that the company is likely to experience long-term health, as long as it maintains its unique knowledge and product range. Other companies who seek to respond to the market by creating innovative technology of their own are at a disadvantage in terms of timing. Testing and marketing would take time and funding, while USUS is already operating at full capacity to produce an already successful product.

This long-term health then provides USUS with the opportunity to choose its strategic approach for its future health and growth. Choosing this wisely would further work to the company's advantage, health and…

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