Vectren SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 291
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SWOT Analysis of Vectren with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Vectren

Parent Company

Vectren

Category

Energy and utilities

Sector

Energy

Tagline/ Slogan

Live Smart.

USP

Helping customers to live smart by providing tools and resources to manage energy usage

STP

Segment

Electricity and natural gas requirements

Target Group

Residential, commercial and business

Positioning

Helping customers to live smart by providing tools and resources to manage energy usage

SWOT Analysis

Strengths

1. It has strong customer base of 143,300 electric customers in Indiana and 1,011,100 natural gas customers in Indiana and Ohio.
2. It has strong storage and distribution infrastructure in its utilities segment which consists of three subsidiaries Indiana Gas, VEDO and SIGECO.
3. It also has generating plants with capacity of 1298 MW. In 2014, it generated 5546 GW.

4. It operates in diversified sectors which include energy services, infrastructure services which provides underground pipeline construction and repair through its subsidiaries Miller Pipeline, LLC and Minnesota Limited, LLC, energy services, coal mining etc. It provides them competitive advantage and reduces business risk.

5. It has strong CSR activities through its Vectren Foundation.

Weaknesses

1. Its power generation is mostly dependant on coal. 98% of its power generation is coal fired. This is a weakness for them as this creates dependability on a non renewable fuel, coal.

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 Midwest 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 them.

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. Severe weather conditions such as winds, thunderstorms, storms and floods can adversely 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. Price volatility in wholesale market creates risk of low margin for them.

5. Increasing competition.

Competition

Competitors

1. Piedmont Natural Gas Company, Inc.

2. NiSource Inc.

3. Atmos Energy

4. Duke Energy Corporation

5. FirstEnergy Corp.

6. American Electric Power Company, Inc.



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