Control IS expenses by outsourcing functions not central to competitive strategies. Past Gas distributors and electric companies enjoyed monopolies in their geographic areas. Federal and state governments closely regulated the industry, setting rates and influencing capital expenditures. Because of regulatory restrictions, the pace of change was slow and customer service was not a priority. Future Open competition forces companies at many stages of the pipeline and transmission line to charge and bargain for the lowest prices.
Some utilities branch out into new services such as home security and entertainment.
Customer-service innovations become key competitive weapons.