Energy Center Selection in G7 Industry With Fuzzy MOORA

Energy Center Selection in G7 Industry With Fuzzy MOORA

Serhat Yüksel, Alexey Mikhaylov, Lyubov Khomyakova
DOI: 10.4018/978-1-7998-8335-7.ch006
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Abstract

In this study, energy center selection of G7 countries is examined. In this context, firstly, the studies in the literature have been evaluated in detail, and seven different criteria have been determined which may affect this selection. Taking these seven different criteria into consideration, G7 countries are ranked by fuzzy MOORA method according to energy center selection performance. According to the results, Japan and Germany are the most successful countries. On the other hand, it was concluded that France and Italy ranked last in terms of energy center selection performance. Hence, especially the countries in the last rankings should be more careful in selecting energy center. In this framework, the customer potential, the training profiles of the customers, the potential of the company with investment demand, the previous payment performance of these companies, and the market risks should be considered by the energy companies while opening new branches.
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Introduction

There is a very serious competition in the energy sector, especially in recent years. This situation negatively affected the sales volumes of energy companies. On the other hand, as a result of this, there is a significant decrease in the profitability of energy companies (Cheng et al., 2020; Mikhaylov et al., 2021). In order to effectively manage this problem, energy companies want to take some measures that increase both cost and income (Li et al., 2020; Mikhaylov, 2018a,b). In this way, the relevant companies aim to gain a competitive advantage compared to their competitors. Otherwise, it will be very difficult to survive in this competitive environment. As a result, there is a possibility that energy companies established with huge investments will go bankrupt and leave great losses behind (Zhong et al., 2020; Qiu et al., 2020).

There are many different situations that can reduce the costs of energy companies. For example, the dismissal of personnel who do not contribute to increasing efficiency may contribute to the reduction of costs (Zhao et al., 2021; Li et al., 2021). However, this action has a motivation-reducing effect within the company. Therefore, energy companies may turn to other actions in order to reduce their costs. In this context, energy companies give priority to technological investors (Mikhaylov, 2020a,b,c; Zhou et al., 2020). Thanks to the integration of developing technology into investments, it is possible to reduce the costs in energy investments. This can help increase the efficiency of the company's activities. The ability to reduce costs increases the profit margin of the company, which provides a cost advantage to the energy company (Qi et al., 2020; Yuan et al., 2021).

On the other hand, energy companies can take certain actions to increase their sales volumes. In this context, the most important action that can be taken into consideration is increasing customer satisfaction (Yüksel et al., 2020; Liu et al., 2021). If customers can be more satisfied with the services provided, then the energy company will become more preferable. In other words, by increasing customer satisfaction, it will be possible to increase the sales volumes of energy companies. Therefore, it is very important for energy companies to take actions that can increase customer satisfaction (Du et al., 2020; Yuan et al., 2020). In this context, the customer solution center to be created by the companies will help achieve this goal. In this context, selection of energy centers is an important issue in terms of customer satisfaction. Therefore, if energy companies can choose the right energy centers, it will be much easier for customers to be satisfied (Haiyın et al., 2021; Mikayilov et al., 2020).

Energy companies must develop strategies to survive in this increasingly competitive environment. Some companies give importance to technological infrastructure in this process. Thanks to this new technology, energy companies are able to produce products that attract more and more customers' attention (Donou-Adonsou et al., 2016). On the other hand, some energy companies prefer to produce strategies that meet customer expectations. In this context, they first try to determine the expectations of their customers (Kassab et al., 2017). In this process, they also analyze different customer groups and aim to learn what their customers demand from energy companies (Flammer, 2015; Fabrizio et al., 2017).

Key Terms in this Chapter

G7: Seven developed countries which have the highest GDP that are United States, United Kingdom, Japan, Germany, France, Italy, Canada.

VIKOR: Vise Kriterijumska Optimizacija I Kompromisno Resenje.

DEMATEL: Decision making trial and evaluation laboratory.

E7: Seven emerging countries which have the highest GDP that are Brazil, China, India, Indonesia, Mexico, Russia, and Turkey.

ANP: Analytic network process.

MOORA: Multi-objective optimization on the basis of ratio analysis.

TOPSIS: Technique for order preference by similarity to ideal solution.

AHP: Analytic hierarchy process.

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