Bottom of the Pyramid Proposal

In: Business and Management

Submitted By seanhart1
Words 1326
Pages 6
Sean M. Hart
GBUS 496

Individual BOP Proposal

This paper will evaluate the potential of “bottom of the pyramid” opportunities for a multi-national electric generation and distribution company. Initially, the basic elements of strategy needed for serving this market will be examined. Next, the AAA factors will be evaluated to determine if there are advantages to be obtained by globalizing the proposal. Lastly, cultural differences that may affect the business will be examined.
Company Overview

PPL Corporation began in1920 when eight utilities serving central and eastern Pennsylvania merged into a single entity called Pennsylvania Power & Light Co., headquartered in Allentown, Pa. Today, PPL controls or owns about 19,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets, and delivers electricity and natural gas to about 10 million customers in the United States and the United Kingdom. In the U.S., PPL generates and distributes electricity in PA, KY, MT, VA and TN. PPL formerly owned generation and distribution companies in Latin and South America, but has since divested itself of those interests.
Elements of Strategy

PPL is active in the multi-national electricity generation and distribution arena and has chosen to expand its business largely through the vehicle of acquisition. Since PPL’s product is a commodity, it must differentiate itself by providing greater reliability of service and lower price. Historically, the Company has staged its moves in a reactive manner dependent upon the acquisition opportunities that came on the market. PPL’s economic logic is simple: the people within its service territory are dependent upon electricity and will pay to get it.
The recent drastic reductions in natural gas prices have caused the Company shift its’ to focus from coal-fired, base-load generation to…...

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