SWOT Analysis of MDU Resources with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis
Energy and utilities
Building a strong America
Integrated energy company
Electric and natural gas
Residential, commercial, industrial
Integrated energy company
1. Through its subsidiaries, it operates on various segments which are Utilities (Montana-Dakota, Cascade Natural Gas, Intermountain Gas Company etc.), pipeline & energy services (WBI Energy), exploration & production (Fidelity) and construction services & materials. 2. It utility segment has a strong customer base of more than 1 million which includes 138,000 electric customers of Montana-Dakota and 892,000 natural gas customers. 3. It was founded in 1924 and thus has more than eight decades of experience. 4. Montana-Dakota’s electric operations have strong infrastructure which include interests in 11 electric production facilities, 3 portable diesel generators and 3,100 and 5,000 miles of transmission and distribution lines and 58 transmission and 279 distribution substations.
5. On November 20, 2014, Montana-Dakota and Thunder Spirit Wind, LLC formed an agreement to purchase for approximately $200 million a wind farm of 107.5 MW of installed capacity in southwest North Dakota.
6. WBI energy manages 3,800 miles of transmission, gathering & storage lines in South Dakota, Montana, North Dakota and Wyoming.
7. Its natural gas utilities segment purchase natural gas from a wide range of suppliers which include WBI Energy Transmission, Northern Border Pipeline Company, Northwest Pipeline GP, Northern Natural Gas, Gas Transmission Northwest LLC, Northwestern Energy. This enhances dependability of their business.
8. Its subsidiary WBI Energy Transmission’s underground storage facility has a capacity of 353 bcf. This allows them to meet winter peak requirements.
1. Abundance of shale gas in US has resulted in decline of price of natural gas. Due to this margin in natural gas has also declined.
2. As the company purchases natural gas from various suppliers at market price, fluctuations there can harm their margin. 3. As a part of corporate strategy they want to market Fidelity, their exploration and production company and exit that line of business. However this has been delayed due to volatility of oil prices. There is a risk that selling that will be successful.
1. Increase in demand in electricity and natural gas creates opportunity for them. 2. Investment in new projects which can help them to expand operations can create opportunity for them. 3. Investment in grid and pipeline infrastructure can create opportunities for them.
4. With changing environment, huge opportunity lies in renewable energy sector.
1. Various environmental laws and regulations are there in this industry and this creates a risk for the business as any unfavorable policy can harm business. 2. Natural gas demand depends on weather conditions as it is mostly used home heating systems and adverse weather can affect their business.
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