Estrategia empresarial y estrategia financiera de la Sociedad Hidroeléctrica Española, 1907-1935

Abstract

This article examines the main factors that played a role in the strategy formation of Hidrola. The company adopted an expansive and successful strategy. This allowed the company to became one of the most important companies in Spain during the 20th century. The company was created as a result of the financial strategy of Hidroelectrica Iberica in order to attract capital from areas different from the Basque Country. As a consequence, Hidrola’s Board of Directors comprised very diverse financial and business interests. This diversity was a key factor in the formation of the company's expansive strategy as a response to the particular market conditions it, faced. The company's interest dominated the particular interests of the groups represented on the board. The oligopolistic structure of the market, with potential competition outbreaks, together with the growing demand and Hidrola's own history, contributed to the company's expansive strategy