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Porter’s Five Forces of Exelon

<p align&equals;"justify">Exelon is one of the leading energy sector companies in North USA&period; It is doing business in 48 different states of America&period; The company is doing operations in generating the power&comma; sale of power sector products&comma; distribution&comma; and transportation to different regions&period; Exelon is founded in Oct-2000&period; The Headquarter of the company is in Chicago&comma; Illinois&comma; U&period;S&period; It is doing business in the Energy sector&period; <br &sol;>&nbsp&semi; <br &sol;>&NewLine;It is a public limited company&comma; listed in NASDAQ stock exchange also known as NASDAQ&period; Its CEO is Christopher Crane&period; The total income of the company is US 35&period;9&period; &lbrack;3&rsqb; According to the annual report 2017&comma; its total assets are about US 116&period;700 billion&period; &lbrack;4&rsqb; Exelon’s stock price is 44&period;54 USD&comma; as per the closing of Dec-04-2019&period; &lbrack;1&rsqb; More than 33&comma;000 employees are working in this organization&period; &lbrack;2&rsqb; It is the largest electric company in the United States by revenue&period; The company also has its nuclear plant which is the largest in this sector in the United States&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats of New Entrants<&sol;h2>&NewLine;<p align&equals;"justify">The USA is one of the largest generators and consumers of energy in the world&period; In the United States&comma; energy sector companies are operating in different divisions such as production&comma; supply chain&comma; marketing&comma; etc&period; Exelon is one of them and has a good reputation in the market&period; Different complex base networks of companies are supported by different new products such as grid technology and different technologies such as wind and solar energy&period;&NewLine;<&sol;p>&NewLine;<p align&equals;"justify">Every company is innovating its operations and going towards automation&period; Hence companies are focused to create a competitive advantage in the market&period; Therefore&comma; we need to keep it in our mind&comma; this industry requires a large initial investment to start the operations&period; Government institutions are monitoring this sector due to which there is pressure on companies to be environmentally friendly&period; Similar to its generation plants&comma; a large amount of capital is needed to start an effective supply chain in the market&period; So&comma; keeping all of these issues into consideration&comma; it is a very difficult task for new entrants to enter because of existing barriers&period; Therefore threats of new entrant is very low in this market&period;&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats of Substitutes<&sol;h2>&NewLine;<p align&equals;"justify">Companies are using the R&amp&semi;D department to innovate products&comma; services&comma; and operations&period; Supply chain&comma; pricing strategy&comma; lower prices through using less costly material&period; It helps in offering a cheap product in the market&period; As the ultimate product is common&comma; new methods can play a role here as threats of substitutes&period; The use of wind energy and solar energy can play a role as a substitute for the traditional energy sector&period; Therefore&comma; a moderate level of threats for substitute exists in the current market&comma; where Exelon is doing business&period; &NewLine;<&sol;p>&NewLine;<h2>&NewLine;Bargaining Power of Buyers<&sol;h2>&NewLine;<p align&equals;"justify">Exelon is one of the distinguishable companies in this sector&period; It is also an American Fortune 100 company&comma; serving almost 10 million customers in the USA&period; The company is using advanced technologies to generate energy which helps in cheap production&period; As the buyers are large in volume and the company owns a good reputation in the market&period; There are few large corporations generating energy and the demand for the product is never decreased&period; Therefore&comma; the buyer is dependent on these organizations and do not have much bargaining power as an individual in this secto&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of the Suppliers<&sol;h2>&NewLine;<p align&equals;"justify">As per different reports&comma; electricity generation from coal dropped 8&percnt; in the first quarter of 2019 as compare to 2018&period; Coal generated electricity was only 26&percnt; of total production in a sector&period; As companies are moving towards innovation in technologies&period; Therefore&comma; if the company is dependent on coal and does not have an efficient supply chain&period; If the company’s performance relay on supplier due to the need for raw material&period; As a result&comma; the bargaining power of suppliers will increase&period; Furthermore&comma; when we talk about the company such as Exelon&comma; the bargaining power of suppliers is less because the company is efficient in its operations&comma; and it is also using several methods for generating the product&period; Hence&comma; the company is not dependent on a single type of supplier in the industry&period; &lbrack;5&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Competitors Rivalry<&sol;h2>&NewLine;<p align&equals;"justify">The primary need of the customer in this sector is the same&period; Similarly&comma; the product is also the same by nature&period; Therefore&comma; competition exists in the market due to innovation in operations by different companies&period; Regardless of the size of the segment&comma; every company is trying to tackle each other to increase market share and profitability by different strategies&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">References<&sol;h2>&NewLine;<p align&equals;"left">1 Yahoo Finance&comma; 2019&comma; Exelon Corporation &lpar;EXC&rpar;&comma; &lbrack;online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;finance&period;yahoo&period;com&sol;quote&sol;Exc&quest;ltr&equals;1">https&colon;&sol;&sol;finance&period;yahoo&period;com&sol;quote&sol;Exc&quest;ltr&equals;1<&sol;a> <br &sol;>&NewLine;2 Exelon&comma; 2019&comma; ABOUT EXELON&comma; &lbrack;online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;exeloncorp&period;com&sol;company&sol;about-exelon">https&colon;&sol;&sol;www&period;exeloncorp&period;com&sol;company&sol;about-exelon<&sol;a><br &sol;>&NewLine;3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION&comma; 2018&comma; Annual Report&comma; &lbrack;online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;sec&period;gov&sol;Archives&sol;edgar&sol;data&sol;1109357&sol;000162828018001324&sol;exc-20171231x10k&period;htm">https&colon;&sol;&sol;www&period;sec&period;gov&sol;Archives&sol;edgar&sol;data&sol;1109357&sol;000162828018001324&sol;exc-20171231x10k&period;htm<&sol;a><br &sol;>&NewLine;4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION&comma; 2017&comma; Annual Report&comma; &lbrack;online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;sec&period;gov&sol;Archives&sol;edgar&sol;data&sol;1109357&sol;000162828018001324&sol;exc-20171231x10k&period;htm">https&colon;&sol;&sol;www&period;sec&period;gov&sol;Archives&sol;edgar&sol;data&sol;1109357&sol;000162828018001324&sol;exc-20171231x10k&period;htm<&sol;a><br &sol;>&NewLine;5 Benjamin Storrow&comma; 2019&comma; 019 Power-Sector Trends Point to a Continued Rise in U&period;S&period; Emissions&comma; &lbrack;online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;scientificamerican&period;com&sol;article&sol;2019-power-sector-trends-point-to-a-continued-rise-in-u-s-emissions&sol;">https&colon;&sol;&sol;www&period;scientificamerican&period;com&sol;article&sol;2019-power-sector-trends-point-to-a-continued-rise-in-u-s-emissions&sol;<&sol;a><&sol;p>&NewLine;

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