Germany is a leader in the European coal industry and has a significant amount of domestic coal operations, particularly of lignite. Coal is widely used in Germany for electricity generation and coke. Germany is also a major importer of coal.
Mining of hard coal in Germany is located in the Ruhr and the Saar coalfields, and in recent years, the production of hard coal has been on a gradual decline due to the removal of subsidies by the German government that makes coal extraction from underground mines quite unprofitable.
RAG Aktiengesellschaft and RWE Power are the major players in the German coal industry, with RAG Aktiengesellschaft being involved in the mining of hard coal, and RWE Power focusing on mining lignite.
In order to understand the profitability and the dynamics of competitive structure of the coal industry in Germany, Taiyou Research presents a Porter's Five Forces Analysis of the German Coal Industry.
Michael Porter's Five Forces Model is one of the most effective analytical model for understanding and analyzing the competitive landscape in an industry. The model analyzes the bargaining power of buyers and suppliers; the competitive rivalry in the industry; the threat of new entrants and the threat of substitutes for the particular industry – in this case, coal faces the threat of substitution from the various renewable energy sources that are fast becoming popular today.
In our report, apart from the Porter’s Five Forces Model Analysis of the industry, we also analyze the basics of coal, including the various uses and types of coal, how coal is formed, and many other factors impacting the global coal industry.