Ethanol Market Share

As ethanol market is changing dynamically, companies regularly employ different market share positioning strategies to have an edge while being competitive and stand on a firm market ground as an industry. There are a few ways in which companies have been able to stand out from the competition, one of them is differentiation, where companies strive to set their ethanol products apart from all others. This can be attained either by invention of new and more efficient production process, enhanced quality of the product or concocting of unique blends for the different customers.

As an ethanol product, ethanol is a significant achievement of the market. With an abrupt upswing in the auto sector, there has been an urgent need for a new law to curb environmental pollution in the modern days, particularly in urban areas. The objective is to reduce the impact of air pollution, especially that made by cars, by blending ethanol with gasoline at volumes of up to 10 percent and 15 percent. Other than that, ethanol ethers also have dubious benefits in fuel economy and thermal performance as well as cold starts in the cold seasons. In terms of biofuel production, two countries are seen as the leaders in the world and these ones include the United States and Brazil respectively.

As a result, low cost leadership remains the main approach among the participants in the ethanol market. This concerns the institution of cheap and efficient production methods, productivity improvement and size effect application to reduce production costs. This can be achieved by the production of cheaper ethanol thus attracting more markets and growing. This approach is especially applicable in markets where consumers take price into consideration more than anything else and preference for prices over other factors is high.

Companies are realizing the positive effects of collaborating with each other and building strategic partnerships in the ethanol market. Partnerships are becoming more and more popular. Through partnerships with the players in the value network, which include the raw materials suppliers or distribution network, firms can run processes more smoothly, cut down on expenses, and develop their competitiveness. Partnership strategies may provide channels for shared resource, technology transfer and access to new markets as well, in which way the production efficiency of members is increased together.

The geographic expansion is a type of market share positioning which the company pursues by entering new regions and markets. Since global request for ethanol is growing, organizations explore the ways to expand their influence and satisfy the customer’s diversified needs. Expediting into unmanaged markets will have a similar effect if entrepreneurs understand local regulations, consumer preferences, and distribution channels of the target market.