BSES Power PLC

Privatized in the 90s, this profitable PLC has grown dramatically since it became free of government
controls. However, it is now at a point where the energy market in which it operates is not growing
and has become saturated. After undertaking strategic analysis, the BOD of the company is
considering the following four strategic options:

1. Use marketing tactics or takeover of another company to increase market share in electricity
industry in the regions in which it operates.
2. Attempt to enter electricity market of other countries.
3. Consider development of other forms of electricity i.e. solar and wind power for sale in
current markets. However, there are significant differences between renewable and non-
renewable sources of energy.
4. Develop a series of products (office supplies) not related to energy products. One of the
directors had previously been a senior manager at an office supply company.

The BOD requested a team of management consultants to estimate the costs and benefits of each of
the options. The consultants stated that this was possible, but some options entailed more risks in
comparison to others. Additionally, there maybe errors in forecasting. The directors agreed.

Analyse the four strategic options using the Ansoff Matrix.