Analysis of Con Edison by Using Michael Porter`S Five Forces Model
THE CITY UNIVERSITY OF NEW YORK
LEHMAN COLLEGE
ECONOMIC ANALYSIS FOR MANAGERS
ANALYSIS OF CON EDISON BY USING MICHAEL PORTER`S FIVE FORCES MODEL
INSTRUCTOR: MINE AYSEN DOYRAN
STUDENT: Recep Maz
What makes electric utilities (Con Edison) monopolistic and why? Support your answer by referring to AT LEAST 2 FORCES outlined in MICHEAL PORTER’S Five Forces of Analysis Historical facts about Con Edison Company I would like to give breath information which is really too helpful for further examination for us. Experiments in electric generation had been under way for decades, and by 1878, the Avenue de l'Opera in Paris was lit with electric arc lamps. But arc lamps gave off a harsh light, and while many inventors tried to create a more pleasing and durable light, none met with success until Thomas Edison turned his thorough and methodical attention to the problem. Backed by financiers, including J.P. Morgan and the Vanderbilt family, Edison established the Edison Electric Light Company to own and license his patents in the electric light field. After more than a year of experiments, Edison and his young assistant, Francis Upton, finally developed a carbon filament that would burn in a vacuum in a glass bulb for forty hours. They demonstrated the light bulb to their backers early in December 1879, and by the end of the month were exhibiting the invention to the public. Edison then concentrated on developing a complete system of electric generation and distribution that would turn his light bulb into a commercially efficient and economical business. The Edison Electric Illuminating Company of New York was incorporated on December 17, 1880, to develop and install a central generating station. Edison's system would consist of the large central power plant with its generators (called dynamos); voltage regulating devices; copper wires connecting the plant to other buildings; the wiring,
LEHMAN COLLEGE
ECONOMIC ANALYSIS FOR MANAGERS
ANALYSIS OF CON EDISON BY USING MICHAEL PORTER`S FIVE FORCES MODEL
INSTRUCTOR: MINE AYSEN DOYRAN
STUDENT: Recep Maz
What makes electric utilities (Con Edison) monopolistic and why? Support your answer by referring to AT LEAST 2 FORCES outlined in MICHEAL PORTER’S Five Forces of Analysis Historical facts about Con Edison Company I would like to give breath information which is really too helpful for further examination for us. Experiments in electric generation had been under way for decades, and by 1878, the Avenue de l'Opera in Paris was lit with electric arc lamps. But arc lamps gave off a harsh light, and while many inventors tried to create a more pleasing and durable light, none met with success until Thomas Edison turned his thorough and methodical attention to the problem. Backed by financiers, including J.P. Morgan and the Vanderbilt family, Edison established the Edison Electric Light Company to own and license his patents in the electric light field. After more than a year of experiments, Edison and his young assistant, Francis Upton, finally developed a carbon filament that would burn in a vacuum in a glass bulb for forty hours. They demonstrated the light bulb to their backers early in December 1879, and by the end of the month were exhibiting the invention to the public. Edison then concentrated on developing a complete system of electric generation and distribution that would turn his light bulb into a commercially efficient and economical business. The Edison Electric Illuminating Company of New York was incorporated on December 17, 1880, to develop and install a central generating station. Edison's system would consist of the large central power plant with its generators (called dynamos); voltage regulating devices; copper wires connecting the plant to other buildings; the wiring,
References: 1. http://www.coned.com/history/electricity.asp 2. Competitive Strategy: Techniques for Analyzing Industries and Competitors- Michael E. Porter 3. “Nationalization of companies” to cope with economic recession by Using Michael Porter`s Five Forces-Recep Maz