Targa SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 316
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SWOT Analysis of Targa with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Targa

Parent Company

Targa Resources Partners LP

Category

Midstream natural gas services

Sector

Energy & Power

USP

Modified solution for every client

STP

Segment

Upstream and downstream natural gas companies

Target Group

Upstream natural gas companies

Positioning

Differentiation strategy for each and every client

SWOT Analysis

Strengths

1. It offers a broad product and services offering like gathering, compressing, treating, processing and selling natural gas

2. It leads in fractionation and is one of the biggest fractionators of NGLs in the Gulf Coast 
3. It has access to multiple producing basins, the Fort Worth Basin, The Permian Basin and Barnett Shale
4. Strategically located assets in major shale plays and crude oil resource plays

5. Its assets are located in active and growth oriented crude oil and natural gas producing areas

6. It employs differentiation strategy to focus on each and every client and make sure it offers the clients modified solutions, whether technological or marketing

Weaknesses

1. It depends on third-party for pipelines, storage, and other facilities for midstream operations, to and from the gathering and processing facilities
2. The company is highly leveraged due to which cash flows go into paying off principle and interest on debt 
3. Its level of indebtedness has also limited its flexibility in reacting for and planning to changes in its business.

Opportunities

1. Due to growing demand for liquid fuels in the US, Targa is expected to do well grow and do well in this sector
2. It has been slowly growing organically with big and small growth projects, it has invested $2.6 billion since 2007
3. Targa has made several strategic acquisitions and entered into various joint ventures to increase the scale of its business

Threats

1. There is an intense competition to acquire new sources of gas supplies due to increasing demand
2. With its operations mainly in warmer region, the demand for energy fluctuates and it might have to incur additional cost in maintaining its inventory 
3. The industry has inherent risks associated with its operations and Targa is subject to these risks in gathering, compressing, treating,

processing and selling natural gas

Competition

Competitors

1. BP Plc
2. Atlas Gas Pipeline Company
3. Gulf South Pipeline Company



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