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Everything has a trade-off, especially when it comes to power grids that affect mass populations. There has been much talk about how power companies could

Everything has a trade-off, especially when it comes to power grids that affect mass populations. There has been much talk about how power companies could be responsible for much of the global warming crisis. However, changing the infrastructure of these companies so that they can house and distribute alternative energy sources is difficult to do. Therefore, there are some customers, and other companies, that are using their own generated power sources (e.g. solar, wind, etc.). If this persists, power companies will need to adjust to meet consumer demands.

It is obvious why power companies have not changed their infrastructure to accommodate more alternative energy sources. First, the initial purchasing of the materials, land, and labor is expensive. Additionally, some alternative energies require higher maintenance costs (Vourvoulias, 2023). Finally, the sunk costs of current infrastructure investments could prove too fiscally challenging for big power companies to ignore. Nonetheless, one thing is for sure- if they want to remain dominant in the industry, they will need to make adjustments.

While setting up new systems to house alternative energy sources is costly and time consuming, there could be benefits to it. First, if a majority of the customers want clean energy, and the big power companies do not offer it, they will shift to other newer organizations that are offering it. So, market share is potentially up-for-grabs among the power companies, and only the ones that align the most with consumers will win. Second, governments are wanting alternative energy sources to be considered, and some are even offering incentives to help companies make these switches (United Nations, n.d.). Regardless of the outcomes, business strategies will have to change because of this trend. If companies decide to change their infrastructure, they will need new distribution channels and new operations to support the change. If they decide not to, they will need to find ways to improve their current channels and operations to decrease energy prices, as price may become the biggest motivating factor for consumers. Either way, business strategies will need to change because of this trend.

In conclusion, alternative energy sources are being highly considered among consumers today. Power companies will need to determine their best path forward to ensure their long-term survival. Whether they decide to move with the trend or against it, they will need to take a hard look at their operations to ensure that they are providing as much value to their customers as possible.

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