Strategic fit for new business initiatives for an environmental engineering firm

Engineering consulting firms have a limited set of options to enhance revenues. Engineers sell time and similar services to competitive firms. They are rapid followers not differentiators. To enhance revenues from other sources, an engineering firm has to invest nonbillable time in riskier business ventures. This project explores how a firm could achieve differentiation by examining two new business initiatives that may provide enhanced revenues by entering an emerging industry called CleanTech. This industry is complex and varied; characteristics that may provide market entry opportunities that they can exploit if the firm's partners can manage their propensity for loss aversion. One option is to provide advisory services to developers and investors in CleanTech. A second option is to assemble technologies and manage consortiums taking solutions to global markets. Managing consortiums may provide a better return on investment. The Advisory service may be too incompatible with the firm's core competency.