An Incumbent vs. a new entrant : a Porter's five forces tale of a powerful electricity provider vs. a green energy retailer

Abstract

This article has two themes: the energy (electricity) industry and strategy from a Porter's five forces framework. The concept of the various types of energy provided by electricity companies in Australia is becoming a hot topic, due to the sustainability movement. While EnergyAustralia, an incumbent, has dominated the industry for a long time, new entrants like JackGreen, focusing primarily on retailing green energy, are attempting to disrupt the energy industry (a big hint is the decision by the Australian Government to sell EnergyAustralia's retail arm). Firstly, this paper provides an industry overview using Porter's National Competitive Advantage framework. Secondly, this paper uses the Porter's five forces framework to breakdown the power struggle between these two companies and microscopically analyses the two firms based on each of Porter's five forces.