Analysis of Cleantech

Since the higher requirements of living standards, sociologist, and environmentalist have started to discover the way to reduce the pollution with developing economics. The clean technology is a tool to reach peoples’ expectations of receiving both economic and environmental benefits. Clean technology includes recycling and renewable energy and other aspects, which are more energy efficient and less pollution. This report will state current conditions of clean technology, include general background, five-force analysis, a topical example, and a clear recommendation.

1. Industry background

After lots of natural disasters and climate change, the whole world started to draw attention to environmental problems. People noticed the importance of clean technology. According to Clean Edge, the clean technology is a combination of products and services to reduce the use of natural resources by using renewable and energy sources, which is to decrease emission and waste, and is more environmentally friendly and sustainable. The subsectors of cleantech include renewable energy, water, waste and recycling, construction materials, energy efficiency, and carbon trading and environmental services (Australian CleanTech, 2012).

For the cleantech, the difference with other industries is that the great support from governments and this support will be long-term and continuous. The climate change is not an individual country’s problem, it needs the cooperation of every country. This situation gives clean technology industry incredible opportunities and encouragement.

2. The Five Competitive Forces

3.1. The threat of entrant

Same as other high technology industries, the clean tech needs to be considered seriously and detailed before actual operation. The first test to entry in cleantech is the formation of a professional team. Although there are lots of countries concentrating on the development of clean tech, it does not mean that those successful...