Gas Natural Group SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 575
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SWOT Analysis of Gas Natural Group with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Gas Natural Group

Parent Company

Gas Natural Group

Category

Natural Gas Utilities

Sector

Energy

Tagline/ Slogan

170 years together

USP

The largest integrated gas and electricity company in Spain and Latin America

STP

Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require gas, hydrocarbons and electricity

Positioning

A natural gas company engaged in operating local distribution companies in seven states and serving approximately 73,000 customers

SWOT Analysis

Strengths

1. It is a leading gas supplier in Spain and Latin America enables it to take advantage of its large scale of operations, which adds to its bargaining power
2.  Its diverse electricity generating facilities from energy sources such as hydroelectric, nuclear, coal, oil/gas, CCGT (combined cycle gas turbine), and renewables have enabled it to maintain its overall power generation levels in all climatic conditions and offers it a competitive edge over other players who depend on one source for energy development
3. Its presence across the entire energy value chain provides it with many opportunities to optimize its business while minimizing business risks
4. Its steady growth in revenue performance over the years shows its robust financial position and makes it a lucrative investing destination
5. Its vast geographical presence (in nearly 25 countries) coupled with its huge employee base of nearly 17,000 gives it an edge over competitors

Weaknesses

1. Geographical concentration of its operations, especially in Spain puts it at a competitive disadvantage against competitors with a better-diversified geographic profile
2. Obligations regarding long term gas purchase contracts which requires it to pay even if it does not use the gas in its operations could have an adverse significant impact on the operating costs
3. Its declining generation capacities as seen from its recent results can lead to reduction in its profitability and operations

Opportunities

1. Strategic acquisitions, agreements and contracts (with DEPA, a Greek company; GAIL, Tranvia De Murcia, Societe Nationale pour la Recherche, Sonatrach, Sonelgaz, Iberdrola Ingenieria and the Portuguese company Transgas Armanzenagem) will increase its market presence and also help the company to better compete with its peers
2. Planned investments in its high performing assets will help the company increase its customers and meet any increase in the demand for natural gas in the region
3. Its strong focus on R&D and its smart grid deployment gives it a competitive advantage against its competitors
4. The global energy demand outlook, boosted by increasing demand for oil, gas and electricity across the world can be used by it to leverage its position

Threats

1. Its operations are subject to extensive federal, state and local environmental regulatory requirements, which can increase its compliance costs and impact its profit margins adversely
2. It is subject to risks inherent in the electricity sector whose evolution carries certain risks for any electric utility, which could negatively impact its business
3. A major portion of its operating expenses are linked to the purchase of gas for supplies or for the energy production of its combined cycle plants which exposes it to the variation in commodity prices that are determined based mainly on crude oil prices and oil derivatives
4. Operational risks pertaining to its businesses, leading to loss of life and property can adversely impact its profitability

Competition

Competitors

1. BG Group Plc
2. Centrica
3. Iberdrola
4. Distrigas SA

 


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