Centrica SWOT Analysis, Competitors & USP

Posted in Energy & Power, Total Reads: 4194

SWOT analysis of Centrica analyses the brand/company with its strengths, weaknesses, opportunities & threats. In Centrica 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 Centrica to benchmark its business & performance as compared to the competitors and industry. Centrica is one of the leading brands in the energy & power sector. The table below also lists the top Centrica competitors and elaborates Centrica market segmentation, target group, positioning & Unique Selling Proposition (USP).

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

Centrica

Category

Natural Gas Utilities

Sector

Energy & Power

Tagline/ Slogan

A leading integrated energy company, with customers at our core

USP

The largest supplier of gas to domestic customers in the UK

Centrica STP
Segment

Enterprises and individuals with energy requirements

Target Group

Entities which require home and business energy solutions

Positioning

A British multinational utility company

Centrica SWOT Analysis
Strengths

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

1. Strong market position in UK, being the largest gas and electricity supplier to the UK (supplying gas and electricity under three brand names: British Gas, Centrica Energy, and Centrica Storage)
2. Its strong presence across the entire energy value chain (being engaged in the upstream, midstream, and downstream activities through its four segments: British Gas, Direct Energy, Centrica Energy, and Centrica Storage) provides the company with opportunities to optimize its business while minimizing business risks
3. It operates the largest gas storage reservoir, Rough Field in the North Sea (which has a deliverability rate of 455 gigawatt hours (GWh), or around 1.5 billion cubic feet of gas per day, and a total storage capacity of 35 TWh (118 billion cubic feet) of natural gas at pressures of over 200 bars) which enables it to cater to the gas market better
4. Its strong and engaging customer relationship services cater to its growth and popularity
5. Its huge employee base of nearly 39,000 in two countries of its operations help it to manage its operations better

Weaknesses

Here are the weaknesses in the Centrica SWOT Analysis:

1. Over-concentration in the UK market increases the company's exposure to local factors such as lower demand, severe weather conditions, labor strikes, change in regulations, and economic conditions
2. Its over-reliance on third party infrastructure (as pipelines and platforms) can lead to negative impacts on the company’s costs, revenues and profits
3. It has substantial debt obligations presently which can make it less lucrative for future investors

Opportunities

Following are the Opportunities in Centrica SWOT Analysis:

1. Strategic acquisitions and agreements (with Conocophilips, Total E&P UK, Statoil, Energetix, Vectren Source) will help Centrica to achieve high growth, enhance its market position and increase its profits significantly
2. Securing LNG supply in the UK (through MoUs with Gazprom, Statoil, Cheniere Energy Partners) will help increase its market share
3. Its investments in the clean, renewable energy sector via joint venture with DONG energy and Siemens Project Ventures to develop offshore windfarms will enhance its eco-friendly image
4. Its growing use of smart metering techniques which is an in-home display showing how much gas and electricity is being used as customers are using it – and the cost in pounds and pence

Threats

The threats in the SWOT Analysis of Centrica are as mentioned:

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 Centrica 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

Centrica Competition
Competitors

Below are the top 4 Centrica competitors:

1. Scottish and Southern Energy
2. EDF Energy
3. IBERDROLA SA
4. RWE npower

 

The brandguide table above concludes the Centrica 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 Centrica. The BrandGuide section covers SWOT Analysis, USP, STP & Competition of more than 6000 brands from over 20 categories.

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