The value of internal and external fit. The Enel Energia case study.

Abstract

Changing and evolving are two natural conditions of the World and of businesses as well. Today more than ever time span to change while taking advantage of the opportunities at stake is short and challenging. All the time businesses have to be ready to notice any minimum swing of the Environment, beyond whatever barrier in place, and immediately take the underlying opportunity. That is the only way to strive in the Market: being flexible and dynamic, chamaleons in a way. Of course, to be effective, efficient and competitive, external coherence needs matched with internal coherence as well: but changing something that is actually working is indeed a paradox; it is the entrepreneur’s paradox. In order to understand the value of internal and external coherence it has been analyzed the Italian case of Enel Energia S.p.A.. The Italian Utility is a clear example of a well-structured and long-standing company that has decided to completely revolutionize its business model in order to keep up with the external Environment. Hence it has been examined both the Environment in which the Utility plays, within and beyond the typical market segmentations, and the business model undertaken by the Company itself: in this way, it has been shown first the urgency for businesses to change, despite their tradition in the Market, and then the value coming from a well-structured business model which is both external and internal coherent. Indeed that is just one case and all the results are qualitative. Nevertheless the risk to be the new Ford of the Market is as much higher as never before and, unquestionably, it has never been so difficult to avoid that risk. Opportunities and Threats interchange one with the others day after day and keeping up with them poses great costs on internal coherence. There is no best strategy: the best strategy comes up today and gets overtaken tomorrow. It is a continuum and only times will show us which companies will be successful and which not. Enel Energia S.p.A. has grabbed the spotlight with its business model revolution and that is why it has been analyzed.