Floundering in a deregulated market: an energy company seeks new strategies

Abstract

Purpose

The purpose of this paper is to analyze the business strategy of an energy company, identify the shortcomings in its existing strategy and provide recommendations to streamline a strategic direction.

Design/methodology/approach

The paper applies strengths, weaknesses, opportunities and threats analysis, five forces model and competitive positioning analysis.

Findings

The company needs to evolve its management strategy from an engineering focus to a customer and competitive focus.

Practical implications

The paper demonstrates that a real firm can apply traditional conceptual business models and successfully modify its business strategy to obtain a sustainable competitive advantage, better front-line customer service and newer product development initiatives.

Social implications

The main customers for this company being the residential consumers, the focus on the front-line customer service will benefit the customers and the community in general.

Originality/value

The paper applies existing methodologies for strategy analysis to the business challenges faced by an energy company. The method can be used to find shortcomings in a current strategy, to identify the right fit between competitive strategy and operational competency and to provide a clear direction for the company.

Citation

Gill, A. (2016), "Floundering in a deregulated market: an energy company seeks new strategies", Journal of Business Strategy, Vol. 37 No. 2, pp. 27-35. https://doi.org/10.1108/JBS-08-2014-0101