Businessmodel of Exelon

Customer Segments

Exelon has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at both retail and wholesale customers.

Value Proposition

Exelon offers four primary value propositions: convenience, innovation, risk reduction, brand/status.

The company offers convenience by making life simpler for clients. Specifically, it offers an end-to-end solution, providing services at every stage of the energy business:  generation, competitive energy sales, transmission, and delivery.

The company embraces innovation as a part of its culture. It maintains the following initiatives:

Dedicated Innovation Teams – Employee groups that identify and test new technologies based on ideas from both outside and inside the firm.

Exelon Innovation Expo – An ongoing event that connects employees with experts in different fields to share ideas and brainstorm solutions to complex business problems.

Innovation Central Portal – A crowdsourcing website through which employees can submit ideas, locate a virtual innovation group to vet them, and vote on other submitted proposals.

TechEXChange – A technology evaluation platform that connects experts within the company so they can assess new technologies and decide whether to integrate them into the firm’s business.

The company reduces risk by maintaning high safety and quality standards. It states that its power generation fleet is one of the cleanest (energy-wise) and lowest-cost in the nation, including nuclear, natural gas, hydro, wind, and solar. It is in the process of developing zero-emission natural gas plants.

The company has established a powerful brand due to its success. It bills itself as the country’s leading competitive energy provider, with 32,700 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity. It operates in 48 states, D.C., and Canada and had 2015 revenues of $34.5 billion. It serves 10 million natural gas and electric customers through its six utilities. Its Generation segment includes the nation’s largest nuclear fleet and third-largest globally. It holds the following rankings: #1 zero-carbon nuclear energy provider in America and #1 utility firm on the Fortune 500 (#119 overall). Lastly, it has won many honors, including the following:

• Recognition as one of the World’s Most Admired Companies by Fortune (2006 – 2016)
• Recipient of the Jefferson Awards Foundation National Public Service Award (2015
• Recognition as one of Public Utilities Fortnightly’s “40 Best Energy Companies” (2006-2014)
• Recipient of Edison Electric Institute Emergency Response Awards (2014) ### Channels

Exelon’s main channel is its direct sales team. The company promotes its offering through its website, social media pages, and participation in expos, forums, and conferences.

Customer Relationships

Exelon’s customer relationship is primarily of a self-service, automated nature. Customers utilize its products and services while having limited interaction with employees.

Key Activities

Exelon’s business model entails generating its energy products and delivering its services to customers.

Key Partners

Exelon’s key partners are the suppliers that provide it with the equipment and materials it needs to manage its operations.

Key Resources

Exelon’s main resources are its physical resources, namely the plants and pipelines it uses to generate its energy products.

Cost Structure

Exelon has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of goods (fuel, etc.), a variable expense. Other major drivers are in the areas of operation and maintenance, both fixed costs.

Revenue Streams

Exelon has two revenue streams:  revenues it generates from the sales of its energy products and its services to customers.