Research of a Leading Energy Company Business Strategy

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Kansai Electric Power is a Japanese power company. The company is a leader in the Japanese electricity industry and is ranked in the top 500 in the Forbes1 ranking. Market cap is 9.2B in 2020. The company operates in a region with frequent negative natural phenomena. Kansai's core businesses are integrated energy services, telecom projects, construction and real estate sales. Integrated energy services include the construction and maintenance of power plants (nuclear, hydro, solar, liquid and solid fuel power plants). What makes Kansai Electric Power a leader in a highly competitive and high-risk environment? First, the company guarantees the stability of supplies. Japanese customers rarely complain about power outages and are very demanding on this parameter. Modern monitoring systems help reduce costs and risks. Among such systems are the use of AI and IoT technologies. Also, a key element of the strategy is to maintain a high share of nuclear power (22 %), which ensures a low cost. Let's list the main points of the company's business strategy, which are aimed at maintaining a leading position:

  • development of the information structure for the transmission and distribution of electricity;
  • reduction of electricity tariffs due to cost reduction (commissioning of new nuclear power units);
  • formation of high brand loyalty due to leading positions in the global market to reduce environmental impact; penetration into various spheres of the consumer's life (formation of a switching barrier);
  • promotion of the alliance (increasing the sales market due to the expansion of the company).

by The Editorial Board