Case Name :      AGL: An Electric Utility Dealing with Disruptive Innovation

Authors :           Tom Houghton, Philip Sugai

Source :              Ivey Publishing

Case ID :           9B16A036 / W16489

Discipline :        Marketing

Case Length :    10 pages

Plagiarism : NO (100% Original work)

AGL Energy, a long-time traditional energy supply company in Australia, was facing competition as alternative sources of energy, such as solar power and batteries, were taking root in both the marketplace and with energy-conscious homeowners. The trend of homeowners who opted to supply their own energy needs and go off the grid was described as a “death spiral” for utility companies. In response, AGL Energy appointed a new chief executive officer in 2015 to address concerns related to falling demand, customer retention, and unpredictable energy prices. With climate change issues pushing so-called green energy sources into the forefront, what were the strategic options that would ensure AGL Energy’s continued presence as a leader in the energy industry?