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Client orientation of central power generation companies
Abstract:
Purpose
This article aims to identify effects of client orientation on business models of central power generation companies.
Design/methodology/approach
Five major Russian wholesale electricity market players were selected for the analysis conducted applying A. Osterwalder and Y. Pigneur’s ‘Business Model Canvas’. To identify the changes induced by client orientation, the progress of companies’ business models was traced over 6 years; from 2009 to 2015.
Findings
Five major trends in business model changes due to client orientation were identified:
1. Declaration of client orientation and adoption of client service standards;
2. Advent of business diversification in favor of engineering, construction, service, operation and maintenance of generating facilities;
3. Increase in vertical integration;
4. Increase in diversity of communication channels with consumers;
5. Increase in diversity of customer relationships.
The results were compared with those obtained in international studies. Conclusions about international and local character of the trends are presented.
Originality/value
The study contributes to knowledge of current and upcoming changes in the business of central power generation triggered by the advent of electricity prosumers. It is valuable both for management decision makers and theorists.