Marketing strategies of Australian electricity distributors in an opening market

Examines the development of marketing strategies in the Australian electricity distribution market which has recently opened to competition. Marketing managers of businesses licensed to compete in this market were surveyed to assess the importance they attached to particular marketing variables and marketing strategies and whether they were developing a strategic focus. The market currently open consists of medium and large commercial and industrial electricity users. The competitive methods used in this industry were classified according to their consistency with the generic strategic approaches either of being low‐cost, differentiated or focussed. Nine respondents are following a low‐cost strategy, three a differentiation strategy and one, a focus strategy. One can be labelled as “stuck in the middle”. There are more similarities than differences between respondents. The findings point to a lack of clear strategic direction and difficulties in competitors developing strategies consistent with their capabilities.