12-05-2018 01:13 AM
The future of the coal industry
hey, y'll. I am a student from Asia and I was recently given a real-life task from one of the local companies (let's say, Company X).
-Company X produced around 20 millions tons of coal annually, of which 15million goes to Europe and other Asian countries, and around 5 million used inside the country.
- From 5 million consumed locally, 1 million goes to manufacturing and electricity generation companies and the other for 4 million for household purposes (heating homes by local people);
- The future of coal both in the international and local area seems to be in jeopardy.
- The demand and price in Europe (also in the world) expected to go down; [due to several reasons: 1. policies on CO2 emission; 2. Due to political reasons many countries want to do not to rely on import coal and started to produce by themselves. 3. The rise of there energy sources. 4. 5. there are many reasons for it]
- In the local market there is also a threat; As mentioned above, in the local market it is mainly used for household purposes (4 million tons). The government investing in gasification and it directly cuts the sales of coal in near future and people will be using gas to heat their homes.
- In the local market, the competition also rising as new companies have emerged.
- What do you propose to survive and flourish know this information?
For example, these things that I come-up:
Extraction of rare earth metal from coal.
Concrete production from coal ash. [this can be combined with step 1. And they can burn coal by themselves and extract metal and produce coal from ash; + they can utilize coal ash waste from electricity generation companies]
to increase the lifetime value of consumers they can implement a new business model. [currently, Company X does not sell in the local market directly]. They can start selling by themselves [will cut the final price and make it a bit attractive]. And to improve delivery and comfort they can implement a subscription-based model [for winter period; weekly delivery of 1 ton of coal for users].
I would highly appreciate if you can propose any ideas on it. Thanks.