IST Otokon within a restructuring South African electricity distribution industry
IST Otokon, a Pretoria based company, has been in the metering industry for more than 15 years. Their client base was restricted to large users of electricity in the industrial sector. The imminent restructuring of the South African electricity distribution industry is an industry trend that might have some business opportunities for 1ST Otokon. In order to ascertain whether some real opportunities exist, a thorough literature study needed to be performed. This study included an investigation of electricity distribution restructuring abroad, as well as a study of the status and possible future scenarios regarding the restructuring of the South African electricity distribution industry. The study showed that the restructuring of the electricity distribution industries across the world is advanced in many countries, indicating that it is indeed a worldwide trend. It is also deduced that this initiative in South Africa is quite advanced, and that South Africa is on the brink of actual restructuring of the electricity distribution industry. Key role players, worldwide metering and power quality trends, the competition and black empowerment are all factors that can play a major role during the restructuring process, and were all investigated in detail. It was concluded that black economic empowerment was a crucial factor in South Africa, and a strategic issue that cannot be overlooked. The empirical study included an open-ended questionnaire which was sent to some key role players. This was followed by a comprehensive SWOT analysis. Consequently, the five forces of competition were analysed and key success factors and key economic trends were identified. Rivalry among competing resellers was identified as a strong competitive force. Additionally, marketing in these new developing markets was identified as an 1ST Otokon weak point. 1ST Otokon's highly skilled work force was a definite strength, and some opportunities exist for vertical integration, when the core business of other 1ST divisions is taken into account. A summary overview was compiled, taking the literature study and empirical study into account. Some broad guidelines were consequently derived, on which the detailed action plans would be based. The action plans were grouped into metering, power quality and general action plans. The action plans focused on meter sourcing, marketing and software changes for metering, power quality certification and skills development, as well as Black expected results were discussed, which indicated that the successful implementation of the action plans can lead Economic Empowerment and strategic alliances. Details on these action plans were presented. Finally, to significant growth for 1ST Otokon.
- ETD@PUK