Using Strategic Tools to Develop Strategies for Commercialising Second Generation Biofuel Technologies

Abstract

We identify that while much has been published regarding the science and economics of biofuels, there is a sparsity of research surrounding the strategic questions of how to take technologies from the bench-top to the real world. We introduce the case of a small entrepreneurial firm looking to commercialise an in-licensed biofuel conversion technology in New Zealand and the question of what strategies it might adopt at a future point following completion of its first plant, under the assumption that its technology performs as expected. We undertake a literature review and find a set of attributes necessary for organisational research to be relevant, which can be repurposed as criteria for good strategic recommendations. We identify strategic tools as a suitable means by which we can analyse the situation of the case firm and output suitable strategic recommendations and after a review of those in common use select PESTLE analysis, scenario analysis and the TOWS matrix as suitable tools. We mesh these together into an integrated system for translating a situational analysis into actionable output. We then implement these three tools and find that supply security is one of the key strategic considerations for this kind of venture, as is the fact that distribution is tightly controlled. Thus, more integrated strategies, which incentivise suppliers and distributors to cooperate in securing the value chain, are favoured.