The power of brand equity: Exploiting a singular incumbent advantage
- Mercer Management Consulting, Boston, MA (United States)
The US utility ``brandscape`` resembles feudal Europe: There are numerous adjacent fiefdoms where the brand equity within each falls off precipitously outside territory borders. Those who want to ``go national`` face a protracted, expensive task dislodging local incumbents. With the onset of competition in retail electric power markets, America`s last great deregulation is well under way. Customers are pressing their suppliers to reduce energy bills by opening markets to competition. Deregulation of power generation, which has moved quickly in recent years throughout North America and Europe, is eroding the traditional pillars of value: franchise protection, cost-based pricing, and rate-of-return regulation. The stakes are high for incumbent utilities, given that electric sales in the United States alone total more than $200 billion, greater than sales in telecommunications, air transportation, or railroads. Add in natural gas ($5 billion or so) and related energy products and services, and it is clear why upstart entrepreneurs and outsider firms are attracted to the opportunities opened up by deregulation.
- OSTI ID:
- 352509
- Journal Information:
- Electricity Journal, Vol. 12, Issue 2; Other Information: PBD: Mar 1999
- Country of Publication:
- United States
- Language:
- English
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