Case
Teaching Notes
Supplementary Resources
Abstract
Smart Power, a Texas retail electric provider, has grown rapidly in the two years since it was founded by Robert Chris. The state of Texas is largely deregulated, meaning that the production and transmission of electricity are separate functions from consumer retail; as a result, many retail electric provider companies have sprung up. Smart Power is in determining where to look for additional growth. The company’s current marketing strategy offers five brands to five target markets, resulting in a “house of brands” strategy. Smart Power needs to determine whether to expand or reduce the number of brand offerings, look for new under-served markets, or combine these strategies.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit A: An example of how flat fee plans may appear on an energy shopping website.
The energy plans depicted reads as follows.
Energy 42 Premium $100 Bill Credit for monthly usage over 2000kWh | Energy 42 * 12 months * 100% Renewable Energy * Fixed rates *Cancellation Fees $150 10.9 cents, 2000 kWh Price GET DETAILS |
Fuel Droid Flat Fee Electricity Plan | Fuel Droid * 12 months * 20% Renewable Energy * Fixed rates *Cancellation Fee $125 11.3 cents, 2000 kWh Price GET DETAILS |
Smart Power Flat Fee Electricity Plan | Smart Power * 12 months *25% Renewable Energy *Fixed rates *Cancellation Fee $125 10.3 cents, 2000 kWh Price GET DETAILS |
Exhibit B: Sales result by brand
The details from the chart are tabulated below.
Brands | Smart Power | Texas Star Energy | Bolt Energy | Power Now | Energy express |
Sales Percentage | 49.2% | 1.2% | 5.6% | 12.1% | 31.9% |
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
