POTENTIAL COMPETITIVE EDGE AND DETERMINING FACTORS SHAPING THE COMPETITIVE ENVIRONMENT IN THE ELECTRICAL POWER SUB-SECTOR

Abstract

Sources of competitive advantage of companies from the power sector involve primarily strategic material resources such as generation assets, accessibility of fuels and raw materials, distribution networks, staff’s competencies as well as their expertise, innovation, entrepreneurship, and reputation. The traditional approach to competitiveness according to which a given enterprise’s standing is determined by cost advantage does not apply in this case. An economy’s high competitiveness is primarily shaped by guaranteed energy supplies at prices affordable to clients. In an environment of constant changes in legal regulations as well as customer preferences and expectations, instruments that enable enterprises to compete effectively are gaining in significance, as they support each other and lead to effects of synergy. Seeking sources of competitiveness in one advantage, be it cost or quality, does guarantee success.

Keywords

• competitive environment
• electrical power sub-sector
• synergetic effect
• cost advantage
• innovation