Building a multi-utility business
A ScottishPower case study

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Page 4: Strategy

Scottish Power 2 Image 4In recent times there has been ever increasing competition in the utilities market and this has been accentuated by the entry of foreign companies into the UK e.g. French multi-utility companies, particularly in the field of water services and US telecommunications. Regulation has been ever-tightening. Regulators are appointed by the government to establish and maintain a competitive framework in privatised industries. Regulators in recent times have been seeking to ensure that customers and shareholders alike enjoy the benefits of the more liberalised market conditions.

As indicated earlier in this study, ScottishPower has businesses spanning electricity generation, transmission, distribution and supply of electricity, gas supply, water and sewerage and telecommunications services. It also has an electrical retail business, technology and contracting services.

Above all, ScottishPower is a customer driven organisation and in creating its strategy it has sought to develop one which is shaped by customers’ requirements and needs. Extensive market research has been carried out with domestic and industrial customers to determine the popularity of the multi-utility concept. The results of this research indicated that:

  • Customers find it more convenient to get a single bill;
  • Customers prefer to deal with one contact at a reputable company;
  • Customers demand high quality service;
  • Customers expect to benefit from price economy.

 

ScottishPower | Building a multi-utility business
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