Osaka Gas SWOT Analysis, USP & Competitors

Posted in Energy, Total Reads: 868
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SWOT Analysis of Osaka Gas with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Osaka gas

Parent Company

Osaka Gas

Category

Natural Gas Utilities

Sector

Energy

Tagline/ Slogan

Design your energy

USP

Japan's second-largest supplier of city gas

STP

Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require gas, electricity and other utility services

Positioning

A leading energy supplier with its core natural gas supply business serving 7 million customers

SWOT Analysis

Strengths

1. It is one of the largest gas utility companies in Japan, and its strong domestic presence and wide network coverage increases its reach and provides stability to its operations
2. It is an emerging multi energy supplier (with investments in the domestic electricity retail business, expansion of natural gas business, and upstream interests in energy development) and is trying to become a one-stop energy provider to its customers, giving it a strong competitive advantage
3. Diverse procurement sources of LNG (including countries like Russia, Indonesia, Australia, Oman, Qatar, Malaysia, and Brunei) help the company to have a secured and uninterrupted supply of LNG thereby reducing its business risk
4. Its integrated natural gas operations across the entire energy value chain make it a strong market player and bring it high revenue
5. Its diversification into the electricity market (acquiring stakes in Nakayama joint-ventured independent producers at Osaka and Nagoya sites, which has power generation capacity of 1,400+ MW; starting an electricity generation system at Unitica facility site) also lowers its risks of being an unilinear business venture

Weaknesses

1. Its concentrated operations in Japan increases its business risk and also exposes it to local economic and operating conditions among other increasing business risks
2. Its declining profitability, declining liquidity and weak margins (as a result of the Great East Japan earthquake) shows that it has not been performing well and is not able to deliver value as expected by its shareholders

Opportunities

1. Its attempts to expand the natural gas value chain through further development of its upstream projects of Universe Gas & Oil, Qalhat LNG, Sunrise, Gorgon, Evans Shoal, Idemitsu-Snoree, Japan Coal Bed Methane, Crux, and Cordoba, and newer midstream and downstream projects will ensure stable resources and reduction in the cost of raw materials, as well as boost its revenues and profits
2. Strategic agreements and acquisitions (with Okinawa Electric, Ichthys LNG, Mitsubishi, Cabot Oil and Gas, and Japan Wind Development Company) will help it have a secured supply of LNG, grow in size and thereby enhance its reach
3. Increasing global energy demand, coupled with investment opportunities in the US, due to the prospective growth of the North American Shale Gas Industry can be used by it to further enhance its business avenues

Threats

1. Local Japanese developments (like deregulation of its utility sector, growing use of renewable energy sources and a depleting natural resource base) can erode its business options
2. Volatility in oil and natural gas prices, as a result of factors outside its control can adversely impact its businesses
3. Stringent environmental regulations in Japan can increase its compliance costs and impact its profit margins adversely
4. Intense market competition with other players with a larger financial and geographical base can erode its market share

Competition

Competitors

1. Tokyo Gas
2. Chubu Electric Power Company
3. Kansai Electric Power Company
4. Hokkaido Gas Company

 


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