Jasmina Džafić, Neira Durmić, MA. "The Effect of the Investment Implementation Time on the Solar Energy Investment Justification: The Case of Bosnia and Herzegovina" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 703-709, 2023.
In this era of globalization, business is no longer constrained by geography but is influenced by rapidly growing technology and communication. This trend has grown significantly with the emergence of the COVID-19 pandemic in 2020, forcing industries to adapt to these challenges. These changes have also extended to the global beauty industry, demanding that players in this industry have a unique value proposition to capture consumer attention. This research was conducted on Alca Active Care, a skincare brand that has been established since 2018. Using the Eisenhower matrix, this research identified the main problem faced by Alca Active Care, which is the importance of aligning customer expectations with the delivered value. The research found that the current value proposition held by Alca Active Care is not effective in increasing sales between 2021 and 2023. The conceptual framework of this research uses Alex Osterwalder’s “Three Kinds of Fit” to test the validity of Alca Active Care’s product-market fit with the value proposition canvas. The research employed both qualitative (Focus Group Discussion) and quantitative (4-point Likert survey) approaches to understand the value proposition and identify market trends. The results yielded two new value propositions, namely Multi-functionality and Intuitive Information, which were tested through three stages of validation: interest, preference, and willingness to pay through Facebook ad tracking. The research results indicate that multifunctional skincare products have the highest willingness to pay. In contrast, intuitive information in content regarding product usage and ingredients has the highest interest and preference. Therefore, Alca Active Care’s marketing promotion strategy should highlight this multi-functionality aspect to boost sales.
[1] America's Power. (2020). It's time to end subsidies for renewable energy. [online] Available from: https://www.americaspower.org/its-time-to-endsubsidies-for-renewable-energy/ [accessed: 10 Jan 2021]
[2] Balsari, C. and Ucdogruk, Y. (2008). The Impact of Investment and R&D Subsidies on Firm Performance: Evidence from Istanbul Stock Exchange. 2nd
Management of International Business and Economics Systems (MIBES) International Conference, Larissa, Greece, 4 - 05 July 2008, Vol. 2, pp.1-13.
[3] Cucchiella, F. et al. (2016). A profitability assessment of small-scale photovoltaic systems in an electricity market without subsidies. Energy Conversion
and Management. Vol. 129, pp. 62-74.
[4] Fareed, Z., et al. (2016). Determinants of profitability: Evidence from power and energy sector. Studia UBB Oeconomica. Vol. 61 (3), pp. 59-78.
[5] Finansijsko-informatička agencija FBiH (Financial Intelligence Agency of FBiH). [online] available from: https://fia.ba/bs
[6] Guo, F. et al. (2019). Financial slack and firm performance of SMMEs in China: Moderating effects of government subsidies and market-supporting
institutions. International Journal of Production Economics.Vol. 223, May 2020, 107530.
[7] Hansen, M., Simmons, R., Yonk, R. (n.d.). The Unseen Costs of Solar-Generated Electricity. Utah: Institute of Political Economy.
[8] Hay, F. J. (2016). Solar electric investment analysis. The USA: Nebraska University.
[9] IBM (2020). Transforming Variable to Normality for Parametric Statistics. [online] Available from: https://www.ibm.com/support/pages/transformingvariable-normality-parametric-statistics [accessed: 29 April 2022]
[10] International Renewable Energy Agency – IRENA. https://www.irena.org/
[11] Iwata, H., Okada, K. (2011). How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms.
Ecological Economics, 2011, vol. 70 (9), pp.1.691-1.700.
[12] Kassambara, A. (2020). Transform Data to Normal Distribution in R. [online] Available from: https://www.datanovia.com/en/lessons/transform-data-tonormal-distribution-in-r/ [accessed: 28 Apr 2022]
[13] Kim, A. (2019). [online] Available from: https://www.theburningofrome.com/blog/can-i-log-transform-negative-values/ [accessed. 04 May 2022]
[14] Lopez Prol, J. (2018). Regulation, profitability and diffusion of photovoltaic grid-connected systems: A comparative analysis of Germany and Spain.
Renewable and Sustainable Energy Reviews. Vol. 91, pp. 1.170-1.181.
[15] LRC BIS. [online] Available from: https://www.lrcbh.com/
[16] McDonald, J. (2015). Data Transformations. [online] Available from: https://www.biostathandbook.com/transformation.html [accessed: 27 Apr 2022]
[17] Operator za obnovljive izvore energije i efikasnu kogeneraciju. [online] Available from: https://www.oieiek.ba/
[18] Patatari, S., Sinkkonen, K. (2014). Energy Service Companies and Energy Performance Contracting: is there a need to renew the business model?
Insights from a Delphi study. Journal of Cleaner Production. Vol. 66, pp. 264-271.
[19] Peng, H., and Liu, Y. (2018). How government subsidies promote the growth of entrepreneurial companies in clean energy industry: An empirical study
in China. Journal of Cleaner Production. 188, pp. 508-520.
[20] Schabek, T. (2020). The financial performance of sustainable power producers in emerging markets. Renewable Energy. Vol. 160, 1.408-1.419.
[21] Shao, W., Yang, K., Bai, X. (2021). Impact of financial subsidies on the R&D intensity of new energy vehicles: A case study of 88 listed enterprises in
China. Energy Strategy Reviews. Vol. 33. January 2021, 100580.
[22] Wang, S., Zhao, S. et al. (2020). Impact of Government Subsidies on Manufacturing Innovation in China: The Moderating Role of Political Connections
and Investor Attention. Sustainability. Vol. 12 (18), 7740.
[23] Wicklin, R. (2011). Log transformations: How to handle negative data values? SAS Instutite Inc. [online] available from: https://www.sas.com/
[accessed: 21 Apr 2022]
[24] Zhang, H., Zheng, Y., Ozturk, U.A., Shanjun, L. (2016). The impact of subsidies on overcapacity: A comparison of wind and solar energy companies in
China. Energy, Vol. 94, pp. 821-827.
[25] Zhu, Z., Zhu, Z., Xu, P., Xue, D. (2019). Exploring the impact of government subsidy and R&D investment on financial competitiveness of China's new
energy listed companies: An empirical study, Energy Reports, ISSN 2352-4847, Elsevier, Amsterdam, Vol. 5, pp. 919-925.
Investment Implementation Time (IIT), Investment, Solar Energy, Bosnia and Herzegovina.