National Grid SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 1964
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SWOT Analysis of National Grid with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

National Grid

Parent Company

National Grid

Category

Natural gas Utilities

Sector

Energy

Tagline/ Slogan

Delivering energy safely, reliably and efficiently

USP

An international electricity and gas company and one of the largest investor-owned energy companies in the world

STP

Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require electricity, gas and LNG storage etc

Positioning

An international network utility company with electricity and gas transmission and distribution interests

SWOT Analysis

Strengths

1. Significant electricity assets in the UK (England and Wales) and US (New York, Massachusetts, Rhode Island, New Hampshire, and Vermont) help it in enhancing the efficiency of its electricity operations
2. Strong gas distribution operations in the US (with a distribution network of approximately 58,000 kilometers of gas pipelines covering an area of approximately 26,400 square kilometers) and UK (with a network of approximately 132,000 kilometers of gas distribution pipelines) offers it a competitive advantage by strengthening its market position
3. NGP has diversified operations in the US and the UK through its following business segments: US regulated; UK transmission; and UK gas distribution, which help reduce its business risk
4. Its sound financial banking helps it keep its operational efficiency to a maximum with a workforce of 25,000+
5. Its cost efficiency in operations, transmission and distribution helps it garner high profits

Weaknesses

1. NGP is a holding company, which conducts all of its businesses through its subsidiaries, and thus the dependence on its subsidiaries for payments puts the company in risk as its subsidiaries do not guarantee its payments
2. NGP subsidiary KeySpan generates a substantial portion of its revenues in its electric services segment from a series of agreements with Long Island Power Authority (LIPA), which declined to renew the agreement, which may adversely impact the company’s income
3. Its business in the US is regulated by US laws which cause certain problems to the company’s business affairs

Opportunities

1. Expansion of the Isle of Grain importation facility, the only LNG importation facility currently working in the UK which provides the company with an opportunity to further expand its LNG operations as well as exploit opportunities for further market penetration.
2. NGP and Statnett signed an agreement to develop an electricity interconnector between Norway and the UK. The North Sea Network (NSN) project is a key to further development of the North-European power grid, which will help NGP in offering more business to a diversified market, thus resulting in an increased financial performance
3. Increasing demand for electricity and natural gas in the US, and a growing smart grid market will benefit the company and help it record robust top line growth

Threats

1. Intense competition with other market players, which have greater financial resources, credit access, geographical reach can erode its market reach
2. 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
3. The electricity and gas businesses of NGP are seasonal and dependent on weather conditions in the service areas and as such, fluctuations in weather could significantly impact the operating results in turn affecting the company's operations and financial condition

Competition

Competitors

1. Scottish and Southern Energy
2. Consolidated Edison Inc.
3. Dominion Resources Inc.
4. Duke Energy Corporation

 


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