MDU Resources SWOT Analysis, Competitors & USP

Posted in Energy & Power, Total Reads: 1346

SWOT analysis of MDU Resources analyses the brand/company with its strengths, weaknesses, opportunities & threats. In MDU Resources SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like MDU Resources to benchmark its business & performance as compared to the competitors and industry. MDU Resources is one of the leading brands in the energy & power sector. The table below also lists the top MDU Resources competitors and elaborates MDU Resources market segmentation, target group, positioning & Unique Selling Proposition (USP).

MDU Resources SWOT, Competitors, Marketing STP & Brand analysis Table
MDU Resources Brand Analysis
Parent Company

MDU Resources

Category

Energy and utilities

Sector

Energy & Power

Tagline/ Slogan

Building a strong America

USP

Integrated energy company

MDU Resources STP
Segment

Electric and natural gas

Target Group

Residential, commercial, industrial

Positioning

Integrated energy company

MDU Resources SWOT Analysis
Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of MDU Resources. Strengths are:

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.

Weaknesses

Here are the weaknesses in the MDU Resources SWOT Analysis:

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.

Opportunities

Following are the Opportunities in MDU Resources SWOT Analysis:

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.

Threats

The threats in the SWOT Analysis of MDU Resources are as mentioned:

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.

3. High competition.

MDU Resources Competition
Competitors

Below are the top 3 MDU Resources competitors:

1. Questar
2. Northwestern Corporation
3. Xcel Energy

The brandguide table above concludes the MDU Resources SWOT analysis along with its marketing and brand parameters.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to MDU Resources. The BrandGuide section covers SWOT Analysis, USP, STP & Competition of more than 6000 brands from over 20 categories. This SWOT and marketing analysis has been researched & authored by our BrandGuide Research Team members.

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