Central Hudson Gas & Electric SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 274
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SWOT Analysis of Central Hudson Gas & Electric with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Central Hudson Gas & Electric

Parent Company

CH Energy Group (Subsidiary of Fortis Inc.)

Category

Energy and utilities

Sector

Energy

Tagline/ Slogan

People. Power. Possibilities

USP

Safe, reliable and affordable electricity natural gas

STP

Segment

Electricity and natural gas requirements

Target Group

Residential, commercial and business

Positioning

Safe, reliable and affordable electricity natural gas

SWOT Analysis

Strengths

1. It has strong customer base of 300,000 electric customers and 78,000 natural gas customers in 8 counties of Mid-Hudson River valley.
2. It has strong infrastructure with aggregate transformer capacity of 5.4 million kilovolt amps. Its electric transmission system consists of 629 pole miles of line and distribution contains 7200 pole miles of overhead lines and 1500 trench miles of underground line. Its natural gas transmission pipeline is of 165 miles and has 1229 miles of distribution pipelines. This provides competitive advantage for them and helps them to provide reliable service.
3. Central Hudson uses a device called superconducting fault current limiter which protects vital utility equipments from damage caused by electrical faults and enhances their grid efficiency.

4. With changing environment they have also modified their operations and in 2014 over 2750 of their customers have installed solar energy systems. It also owns three hydroelectric facilities which have capacity of 23 MW.

5. Central Hudson has been recognized as one of the top utilities since 2007 by The Solar Electric Power Association (SEPA).

6. They have invested nearly $720 million in gas and electric transmission and distribution system since 2000. This enhances their service reliability.

7. Through its computerized Outage Management System (OMS) it can effectively manage service interruptions by locating and identifying cause of interruption. This helps them to provide reliable service.

Weaknesses

1. It does not own large scale generating plants but purchases on behalf of its customers from wholesale energy market. That creates a risk for their business.
2. The margin in natural gas has declined due to low price of natural gas which is caused by abundance of shale resources and efficient production. 
3. Its operations are concentrated only in New York State’s Mid-Hudson River Valley and this geographic concentration creates a risk for the company.

Opportunities

1. There is increase in demand for natural gas and electricity. This creates huge opportunity.
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.

4. With climate change there is growing demand in the renewable energy segment. This is an opportunity for Central Hudson.

Threats

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.
2. Weather conditions such as winds, thunderstorms, storms and floods can affect their operations.
3. 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.
4. As they purchase energy from wholesale market, there exists price volatility in those market prices. This creates risk of low margin for them.

Competition

Competitors

1. CMS Energy Corporation
2. Consolidated Edison, Inc.



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