Alliant Energy Strategy Analysis And Analysis

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Alliant Energy Strategy Analysis About Alliant Energy Alliant Energy Corporation, headquartered in Madison, Wisconsin is a public utility company openly traded on the New York Stock Exchange. Alliant Energy specializes in generating and distributing natural gas to nearly 420,000 customers and approximately 1 million electric customers in central and southern Wisconsin (Alliant Energy). In additional, they provide similar services throughout northern Iowa and southern Minnesota through their subsidiary companies: Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL). Alliant Energy oversees the primary operation of utility business for IPL and WPL. “IPL and WPL own a portfolio of electric generating…show more content…
To determine the bargaining power of the supplier, one examines “how much power a business’s supplier has and how much control it has over the potential to raise its prices, which, in turn would lower a business’s profitability (Brooks). Since Alliant Energy and its subsidiaries operate out of northern Iowa, central and southern Wisconsin, and southern Minnesota they have the ability to efficiently supply their operational needs, thus limiting the need for outside suppliers. In this situation, Alliant would have plenty of bargaining power, since they can dictate the prices they are willing to pay. Just as the suppliers lack the ability to have bargaining power, so does the customers Alliant Energy serves. According to Porter’s fourth force – bargaining power of the consumer, this force looks at the power of the consumer to affect pricing and quality. Consumers have the power when there are not many of them, but many sellers, as well as when it is easy to switch from one business’s product or services to another (Brooks). In this type of market, the buying power of the consumer is very low, due to the limitation of corporate competition. Alliant Energy has what is called a “Regional Monopoly”, where they control an entire area. With the exception of MG&E in the city of Madison, Alliant Energy are the only source of energy for many communities. The threat of new entrants is determined by how easy or difficult it is
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