Abstract
Introduction
Companies have many strategy tools with which to analyse company performance,
make business decisions and prepare for the future. By filtering internal and
external factors that affect company performance through the prism of
strengths, weaknesses, opportunities and threats, companies can quickly:
profile competitors; understand firm-industry dynamics; identify key areas for
further analysis.
Scope
- A template for conducting utility SWOT analyses.
- A framework for understanding how specific utility issues interact with a
company' s position in the energy value-chain.
Report Highlights
Increasingly liquid and transparent wholesale markets are a crucial
opportunity for new market entrants, which are otherwise often faced with a
lock-up of upstream supplies in long-term contracts by incumbent utilities.
One significant way to minimise risk exposure is to operate in different
markets. Risks relating to regulatory changes and retail price competition can
both be minimised in this way. However, significantly diversifying wholesale
market risks generally requires regional, as opposed to national,
diversification.
Control over network infrastructure provides: a steady stream of regulated
income; scope for restricting competitor access to networks and markets; and
reduced exposure to wholesale markets due to enhanced access to upstream
supplies.
Reasons to Purchase
- Understand how the traditional SWOT analysis framework can be adapted to
the context of European utilities.
- Develop an internal framework for profiling commpetitors.
- Identify future threats and opportunities in a range of different energy
industry areas.