Unimid Power seemed only operational and not strategic in nature. However, for a
highly regulated utility preparing to enter into the world of deregulation, a major
source of competitive advantage is its ability to manage cost and bring efficiency in its
processes. This project had the potential for simplifying small purchases
and permitting management to focus on large purchase costs and relationship with
fewer vendors. Thus, in effect, this project had significant strategic importance and the
senior management understood it. They provided sufficient resources and support to
modified reporting procedures and organizational structure accordingly.