Developing a greenhouse strategy for an energy company.
One of the smaller energy companies has a relatively important position as a supplier to the market gardening sector. This sector consumes a (relatively) large amount of energy in the form of gas and electricity. Due to its energy-intensive nature, this sector is frequently responsible for innovations that subsequently find a wider application. The size of the energy bill is a vitally important factor for market gardeners; they therefore take a professional approach to procurement, motivated by a desire to lower overall energy costs. Energy suppliers in this sector compete by offering a low energy price combined with an active and innovative role in energy management.
Our client saw its position in this sector threatened. It wanted to know how it could play a lasting and profitable role in this sector and what the company’s prospects would be if it withdrew from the sector.
JBR analysed the importance of this sector to the company, with a focus on the financial importance. It also developed a variety of scenarios based on various strategic options, from basic energy supply to the concept of integrated energy management combined with a trading platform. The various scenarios differed in terms of their risk/return profiles. As a supplier of energy, pure and simple, the risk lay with the end customer. At the other end of the spectrum, the risk was taken almost entirely by our client. Between these two extremes there were many intermediate forms. Based on these options, worked out in qualitative and quantitative detail, our client determined its strategy towards the market gardening sector.
A clear picture of the importance of the market gardening sector to our client. An elaborated vision regarding the various strategic options and a decision to continue serving the market gardening sector, based on a carefully considered strategic plan.