New technoloogy in a changing electric power sector : market penetration strategies for fuel cells

Abstract

Fuel cells are a promising new technology with the potential to benefit society through high energy conversion efficiencies, low environmental impact, and ability to deliver high quality electricity. After decades of development, the technology is on the verge of commercialization. However, fuel cell penetration of the electric power sector will be inhibited by a number of important market barriers, including high initial costs, lack of awareness, and undemonstrated operating performance. This thesis discusses the importance of developing a sound business strategy to ensure the market success of fuel cell technology. Two elements of marketing strategy are described as critical for commercialization initiatives: selecting the optimum target market for fuel cell products and designing an effective distribution strategy. A framework and criteria are proposed for choosing among alternative marketing strategies. Ongoing fuel cell commercializati0n efforts are examined in the context of this framework to derive lessons for the emerging fuel cell industry.