An energy company contemplated expanding its role in the value chain of energy services – to generate added value through new services and improving business profitability through new growth areas. The company’s challenge was to capitalize on the current market and its changes. Because of the constantly expanding and evolving nature of the energy market, it was deemed critical to be involved in future market niches and trends.
Spring conducted an energy services market analysis, which allowed for the identification of relevant growth areas for the customer and competitive factors and capabilities required to succeed. The goal was to make a gradual transition to more value-adding services and new growth areas instead of jumping headfirst into new services.
1. Market research: What are the value chain components in energy services, and what value creation mechanisms can be identified?
2. The playing field and the conditions for success: What types of players and services are available in the market, and what are the primary competitive factors?
3. Recognizing customer opportunities: What are the most critical opportunities for the client, and what skills will help them succeed?
Spring created three different development paths in three different time horizons based on core business and current capabilities.
1. We improved the company’s core business focus to achieve new core business support functions and streamline operations.
2. We chose a new growth area for the company to focus on based on capabilities and opportunities.
3. Crafted a plan for long-term changes and opportunities by following the first and second development paths, thereby creating the conditions for business growth as the market evolves.