Columbia Gas of Massachusetts SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 299
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SWOT Analysis of Columbia Gas of Massachusetts with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Columbia Gas of Massachusetts

Parent Company

NISource

Category

Energy and utilities

Sector

Energy

USP

One of the oldest gas distribution companies in Massachusetts

STP

Segment

Natural Gas requirements

Target Group

Residential and business

Positioning

Energy-saving and reliable natural gas

SWOT Analysis

Strengths

1. It has strong customer base of over 309,000 customers in 65 Massachusetts cities and towns.
2. It is a part of NISource which has 4 million natural gas and electric customers in seven states. 
3. It is one of the oldest gas distribution companies in Massachusetts with experience of over 160 years.

4. It has nearly 5000 miles of pipe throughout its service area.

5. Columbia Gas of Massachusetts plans to replace 1,100 bare steel and cast iron pipes with state of the art polyethylene pipes. This modernization of infrastructures will enhance the safety of their pipeline system and will enable them to provide reliable service.

6. They are associated with various CSR activities which include Good Neighbor Energy Fund, association with Friends of the Homeless (FOH).

Weaknesses

1. 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. 
2. Its operations are concentrated only in Massachusetts and this geographic concentration creates a risk for the company.
3. The operations are limited to natural gas and thus it adds risk to their business.

Opportunities

1. There is increase in demand for natural gas and that 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. New England region is an under-saturated natural gas market (18% of total energy demand as compared to 24% of nation). This creates huge opportunity for Columbia Gas of Massachusetts.

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. High competition due to deregulation of natural gas industry.
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. Weather conditions such as thunderstorms can affect their business.

Competition

Competitors

1. Berkshire Gas Company
2. Blackstone Gas Company
3. NSTAR Gas
4. Unitil




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