Propane gas is becoming quite popular with barbecue owners, campers and automobile owners - after all, it is the best substitute for natural gas, wood or any other combustible material. Its increasing use is a very good reason for people to learn about it and make informed choices for their household heating needs.
Introduction to Propane - An alkane and a gas at atmospheric pressure, it is stored as a liquid, and vaporised into a gas for use. It liquefies under very low pressure and is thus more amenable to domestic use. Propane gas is non-toxic and odourless, however, an identifying odour is added for ready detection.
Natural State - Propane does not exist in nature, but is produced as a byproduct of two other processes - the processing of natural gas and the refining of petroleum.
Properties - Propane gas burns well in the presence of oxygen, producing huge amounts of heat (almost 50 MJ/kg) when properly combusted, and emits small amounts of CO2, which makes it a very clean fuel to burn.
Usefulness -
• The low boiling point (i.e. - 420C degrees) means that it vaporises immediately upon release and is ready to use, hence it is good for barbecues.
• It is a clean fuel, so easy to transport and use with minimal danger, ideal for some locomotives, recreational vehicles and campers. It causes less engine wear and does not dilute the engine oil. It also has a high octane rating.
• Its liquid state at moderate pressure means affordable and portable fuel tank design and faster refills of same.
• It is also used as a refrigerant and found to be more efficient than conventional refrigerating gases.
• It is used as the primary fuel in hot air balloons, in manufacture of semi-conductors and propellants, for special effects in the film industry and in agriculture for crop drying and weed control.
Prospects of Propane use – It is an effective replacement for wood. Wood is scarce and propane is safe, easy to use and relatively cheap. It is increasingly being deployed in domestic use due to portability and cheap production making it a viable, economical option.
Precautions - Although safe, it can asphyxiate by replacing oxygen. If there is a propane tank in an enclosed space, do not ignore pungent smells. Propane is heavier than air. If there is a leak in a propane fuel system, the gas will sink into any enclosed area and thus exacerbate a risk of explosion and fire.
Availability - Used in a variety of markets, from barbecue grills to automobiles, the price of this portable gas is determined by other competing fuels for these markets, in addition to the supply chain factors. It is also a seasonal consumer good, and so it is likely to be more expensive when, say, the home heating needs of the community are higher. Getting more popular by the day, it would be safe to welcome Propane gas as the versatile fuel option of the future.
Power Of Now Eckhart
Strategy making process for business existing in a particular industry involves the study of many factors in the industry. These factors, when studied together, shape up an overall context for an organization in an industry. To determine strategy for existence and profitability of an organization, the management should analyze the industry and its structure and how they change with the changing environment.
Analysis of bargaining power of customers or buyers determines how much buyers can influence the demand/supply function, prices, profit margins and the quality of products. Customers can exercise such power when they are in large number or they use to buy a product in large quantities.
The suppliers can exercise their bargaining power when they have large number of customers but they are fragmented. In some cases where the suppliers are aware of the fact that supplies or the input
product have no substitute, they easily demand high prices for the supplies.
An industry normally exists with a number of producers producing a particular type of product for a market. Therefore an environment of competition forms between these producers and their market shares are affected with the performance of their competitors.
Alternative products or services offering the same or higher benefits to the customer are known as substitutes. Customers tend to switch to substitutes products when there is cost to benefit ratio for the substitute product is high than the current product used by that customer.
New entrants can easily enter an industry and distort the existing distribution of market share and price equilibrium if there lesser barriers to entry.
The development of the corporate strategy can be done in accordance to exploit the structure and variables of an industry so as to decide about the entry an exit to any market, choose between products and services to offer, maximization of profitability, growth and market share.
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