The Atomic Energy of Canada Limited (AECL), 
Candu energy, signed a contract with Argentina which worth $400 million brought AECL into people’s sight.
AECL has been a financial problem for federal government for a long time.About $1.2 billion money form taxpayers’ pocket has spent on it. It was sold to Crown Company in 2007, and then the Crown Company was bought by engineering giant SNC-Lavalin Group of Montreal.However, after this contract AECL may gains some profits but since it no longer belongs federal government the profits seems not go into governments’ pocket.
Analysis of AECL from Porter’s 5 Forces:
| Rivalry：Less
Few competitive companies. Specialization in goods: environmental friendly, high technology, renewable and so on. Supported by government.
|
| Threat of Substitutes: High
Hydrogen electricity products. Cheap resources: fossil fuels, wind, solar energy. Costs a lot to purchase. |
Buyers Power: Strong
Buyers are concentrated. Certain buyers purchase a significant amount of outputs. Buyers pose a threat to the company.
|
| Supplier power: Medium
There are few competitive suppliers in this field. Weak Customers Supported by government.
|
Threat of New Entrants and Entry Barriers: Low
The technology required to enter is way too high. The inputs cost a huge amount of money. Have to be supported by government. High inputs with low income.
|
For details about Poter’s Five Forces: http://www.quickmba.com/strategy/porter.shtml
Resources:
http://www.cbc.ca/news/business/story/2011/10/08/candu-reactor-argentina.html
http://en.wikipedia.org/wiki/Atomic_Energy_of_Canada_Limited
http://www.cbc.ca/news/business/story/2011/06/29/aecl-sale.html