Finish the part of "Market Structure and Competitive Analysis in Nigeria" (2 pages, need references) - Essay Example

Market Structure and Competitive Analysis in Nigeria al Affiliation) Around the world and in Nigeria, the market size of photovoltaic modules has been on a steady increase as nations try to look for renewable alternative energy sources. This is especially true for countries in Africa which are recording steady national growth levels and consequently an expanding market for energy conserving cells. In Nigeria, the energy market is benefitting form the gradual reduction in the monetary value of solar photovoltaic modules, which is being triggered by developmental aid on both bilateral and lateral fronts.

For many years, the market size for solar energy in Nigeria has been hampered by the high percentage of the Nigerian population who lack access to the nation’s power grid. In recent years, the figure has been placed at close to 55 %, which has greatly limited the growth of the solar energy industry in Nigeria. However, the 2010 governmental reforms on the country’s power sector have improved the use of solar power energy in a bid to increase the standard of living of millions of Nigerians.

Mind you, the country is estimated to have a population of close to 175 million people.The biggest competitors of Amazing Solar Inc.’s product include BP Solar, Evergreen Solar, AEE Solar and General Electric. However, the low cost of operation associated with our company gives the product an added advantage making it affordable in the Nigerian market. In addition, once the installation and purchase costs have been covered, the consumer does not incur any additional costs, making the product easy to maintain.

This means that advertising costs from the promotion of the product will not greatly affect the price of the product. Due to this fact, the product can be advertised via television commercials, email information cards, newspapers, magazines and through seminars conducted in major towns like Abuja and Lagos.Despite the numerous benefits that the company stands to accrue, there are few disadvantages that Amazing Solar Inc. and its product are bound to face in its penetration of the Nigerian solar energy market, chief of which pertains to the rampant corruption in Nigeria and the uncertainties that accompany penetrating new markets.

In addition, the company faces stiff competition from local based companies that have a better understanding of the demographics involved, market structure, culture of the Nigerian people and the general political and socio-economic factors in the country. Another big disadvantage includes the fact that the country is ravaged by the Boko Haram menace, which might affect the sales volume of foreign products.Johnson argues that despite the obvious challenges, many African countries have not fully utilized the use of solar power, meaning there is large market that has not yet been penetrated.

This opportunity presents a chance for Amazing Solar Inc. to reap maximum profits if it can be able to establish itself as the biggest provider of photovoltaic cells in major cities such as Abuja and Lagos. In addition, recent efforts by the Nigerian government suggest that the nation is planning to shift from fuel based energy sources to more renewable sources (Johnson, 2012).According to estimates, Nigeria stands to become one of the twenty biggest economies in the world in the next ten years, a factor that cannot be ignored in the pursuit of more profits and market share in the growing African economy.

Additionally, Nigeria has consistently recorded very low inflation rates, coupled with the fact that the current inefficient and mismanagement of the gas pipeline supply has been heavily criticized. This has left many Nigerians dissatisfied and looking for an alternative and reliable energy source. Indeed, this is great market opportunity for Amazing Solar Inc. and its product (photovoltaic modules).Reference ListJohnson, S. (2012). Promoting international energy security the Gulf of Guinea. Santa Monica, Calif.: RAND.