ur firm was at an executive conference 0 recently in which many thought leaders of the energy industry were struggling with the issue of how to create a profitable business model to gain or retain market share in the retailenergy marketplace. Stranded costs, the standard offer, state-by-state regulation, the role of the federal government, branding, and customer attitudes were all components of a stimulating dialogue that netted out to: "Show us the money." However, sometimes smart people apply all the right energy and resources to the wrong problem.
It may not be the $300 billion retail-energy marketplace that represents the real opportunity, but rather the multitrillion-dollar market of consumer goods and services. The retail-energy marketplace may offer energy companies a ticket to play in this much larger game. However, to do this successfully, energy companies must become more than energy providersthey must become retailers. By combining their retail-energy positioning with the Internet as the virtual storefront, companies can tap a potentially unlimited portfolio of markets.
The retail-energy marketplace may offer energy companies a ticket to play in this much larger game.
number of traditional energy companies view the Internet merely as a static repository of company and product information. Fewer than 20 percent currently provide customer-or supplier-specific information access or services.
The eventual winners must quickly adopt a strategy that has at its center the belief that the Internet can and will fundamentally change how these companies do business with their once and future customers.
Fewer than 20 percent currently provide customer-or supplier-specific information access or services.