Case | HBS Case Collection | February 2013 (Revised July 2013)

Groom Energy Solutions: Selling Efficiency

by Michael W. Toffel, Kira R. Fabrizio and Stephanie van Sice

Abstract

Groom Energy Solutions helps organizations reduce their energy use and costs through the implementation of energy efficiency measures, which create long-term financial and environmental benefits. With early success serving customers in the cold storage and industrial manufacturing sectors, the seven-year-old company must now decide whether to continue expanding within these segments or transition into commercial retail and office buildings, which offer growth potential and unique challenges. Groom Energy must also decide which geographic regions provide the best opportunity.
This case study provides background on the history of the energy efficiency industry, the energy efficiency paradox, and the benefits and challenges of a business focused on implementing efficiency measures. The case is particularly relevant to courses focused on energy management, environmental sustainability, and entrepreneurship within the energy and sustainability areas.

Keywords: Groom Energy Solutions; Jon Guerster; Salem, MA; Energy Management; Energy Efficiency Paradox; Sustainability Management; manufacturing; Cold Storage; Commercial Real Estate; Enterprise Smart Grid; Carbon Accounting; LED Lighting; Sustainability Research; entrepreneurship; Environmental Entrepreneurship; Energy Entrepreneurship; Energy Services; Electricity; Startup; Expansion; Growth; sustainability; Business Startups; Forecasting and Prediction; Energy Conservation; Revenue; Geographic Location; Human Resources; Management; Growth and Development Strategy; Market Entry and Exit; Operations; Service Delivery; Strategic Planning; Science; Environmental Sustainability; Weather and Climate Change; Society; Social Issues; Technology Adoption; Energy Industry; Green Technology Industry; Technology Industry; Utilities Industry; United States; Boston;

Citation:

Toffel, Michael W., Kira R. Fabrizio, and Stephanie van Sice. "Groom Energy Solutions: Selling Efficiency." Harvard Business School Case 613-054, February 2013. (Revised July 2013.)