SWOT Analysis of Nicor Gas with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis
Energy and utilities
Largest gas distributor in Northern Illinois
Natural Gas requirements
Residential and business
Reliable and competitively priced service
1. It has strong customer base of 2.2 million+ 2. It has approx. 35,000 miles of pipeline. 3. Its parent AGL resources is one of the largest natural gas distribution company in USA. 4. Nicor Gas has high annual storage capacity of 150 bcf
5. Nicor Gas has implemented Energy Smart Plan, which helps in efficient operations
6. Nicor Gas has strong CSR programs such as Energizing Student Potential (ESP), association with United Way.
7. Their purchasing policy of buying in summer when price is lower and storing it to sell throughout the year enhances its profitability and helps to make its services competitively priced.
1. Its operations are concentrated only in Illinois and this geographic concentration creates a risk for the company. 2. Nicor Gas provides credit to counterparties and that creates financial risk and losses if counterparties fail to peform. 3. It does not generate natural gas. This creates the risk of low margin.
1. There is increase in demand for natural gas and that creates huge opportunity for Nicor Gas. 2. Opportunity lies in investment into new projects which can help the company to expand its operations. 3. Growth opportunity lies in investment in storage and pipeline infrastructure.
1. Natural gas industry is highly dependent on weather as natural gas is widely used in home heating systems. So, unfavorable weather has adverse effects on the business. In Nicor Gas 60% of all usage is for space heating and 75% of the revenues occurs from October through March. 2. This industry is under the purview of various environmental laws and regulations and this creates a risk for the business as any unfavorable policy can harm business.
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