The Green Utility

Published 13 Jul 2007
Reference 5449
Topic Strategy
Region Global
Summary

The case describes the launching of a green energy product by Iberdrola, Spain's largest utility by market capitalization. While management believed that it had an innovative product that respected the environment, as well as offering a formidable competitive advantage, some stakeholders viewed it purely as a marketing device. The case shows how a perception gap opened between Iberdrola and its stakeholders.

Teaching objectives

The case provides a unique perspective in the following issues: 1. Iberdrola's transformation into a green utility 2. Market deregulation in the energy sector 3. The controversies around the definition of green energy. 4. The challenges companies face in trying to meet demands from stakeholders. 5. Corporate social responsibility and energy companies.

Keywords
  • RD0707
  • AR2007
  • AR0607
  • European Competitiveness
  • Europe