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This article talks about the how energy savings can benefit a business in different ways.

Every business model consists of energy costs in one form or another. And in many cases, the energy costs can cover a substantial portion of the cost structure. Because of this, reducing the energy cost can be an effective and viable method to improve the business model as a whole, and help achieve the goal of profit maximization.

There are various methods to reduce the energy costs in a business. A simple yet effective way is to simply reduce the usage of lights and other devices which uses electricity. However, this is not the primary focus of the article nor this blog post. What is more significant is the investment in devices that has higher energy efficiency, or investment in renewable energy.

In the micro-perspective, investment in such methods may increase the short-term liabilities for the business. However, it would be an effective investment when viewing the long-term effect as it can reduce future energy costs greatly. In addition, as reduction in energy will better the environment, it can create a positive public image, and therefore may receive more investment and revenue in general. This can be seen as a differentiation strategy as seen from Porter’s generic four strategy model, and having a strong point of difference is pivotal for a business’ success.

From a macro-perspective, reducing energy cost, thus energy use will create a positive change for the environment and society as a whole. As it benefits the society, it is an ethical decision to invest in reducing energy costs.

In both a micro and macro perspective, investment in energy-savings is a good decision as it follows the general idea of profit maximization in the long-term, and also benefit the environment as a whole.

Sanchez, Antonio. “Energy Savings Boost Businesses.” ABQJournal Online. ABQ Journal, 3 Oct. 2015. Web. 03 Oct. 2015.