Analysis of the competitive environment and assessment of the attractiveness of the Russian electric power industry for shaping enterprise development strategies

Abstract

The purpose of this study is to analyze the competitive environment of the Russian electric power industry and assess its attractiveness to identify strategic development opportunities for enterprises. The study utilized Michael Porter's five forces model, PEST analysis, SWOT analysis, the Herfindahl-Hirschman Index, and an industry attractiveness assessment methodology developed by I. Ansoff. The results showed that the industry is characterized by highly segmented competition: a high level of rivalry in generation and sales, while the grid complex maintains a natural monopoly nature. The Herfindahl-Hirschman Index confirmed moderate to high market concentration, dominated by large state-owned holdings. Key factors influencing the industry include government tariff regulation, geopolitical sanctions, high depreciation of fixed assets, a shortage of qualified personnel, and dependence on imported technologies. An assessment of industry attractiveness using Ansoff's methodology revealed that the industry is moderately attractive, providing predictable cash flow but offering no opportunities for excess profits. The practical significance of the work lies in the substantiation of the development strategy of enterprises in three areas: technological, energy, and organizational-economic.