SWOT Analysis of UGI

adam November 25, 2012 Energy No Comments

UGI Corporation is one of leading energy Distribution Company in country. The UGI utilities company is one of subsidiaries of UGI Corporation with its main office in Valley Forge. Headquarter of the UGI is located in Reading, PA. The gas distribution division and electricity supply division offer their services to customers under the name of UGI utilities. The other two subsidies of UGI are UGI Central Penn Gas and UGI Penn Natural Gas Inc. Main objective of both subsidiaries is to offer Gas services to customers. The three main subsidiaries of UGI Corporation are UGI utilities, AmeriGas Partners, L.P and UGI enterprises. AmeriGas partners are distributors of propane gas while electricity and natural gas are supplied by UGI utilities.

Strengths

• The company is dedicatedly providing affordable and reliable energy resources to their customers in Pennsylvania and other parts of US.

• The company offers its services in more than 45 counties of Pennsylvania and 630,000 satisfied customers of counties are true strength of company.

• UGI promotes customer awareness regarding Carbon monoxide and its dangers

• The award of Oldest Fridge Contest was won by the UGI corporation

• UGI ensure brand loyalty of customers and take proper measures in this regard and help them to avoid imposters using fake name of company and providing low standard services.

• For the benefits of customers UGI request government for decrease in rate of energy resources

• UGI acknowledge its community presence by participating in community work and other social activities.

• The wide business portfolio of UGI Corporation ensures its sustainability.

• UGI already exploring new markets and enjoys strong position in China and Europe.

Weaknesses

• Due to increasing prices of fuel it is difficult for company to maintain low fuel cost that also result in reduced revenue.

• Due to dependency on few suppliers the bargain power of supplier increases that can also influence the profits of company.

• Company offering its services in limited area therefore, major profits of company depends on these areas only.

Opportunities

• More revenue can be generated with improvement in infrastructure at the UGI utilities Lehigh Valley.

• Infrastructire can be enhanced at the projects of Harrisburg, Reading area and Lancaster.

• More investement is required for expansion of LPG business in Europe.

• Improvement in infrastructure of gas distribution can offer edge to UGI.

• With the advent of technology demand of electricity is also enhanced in US, for this purpose more investment in electricity sector can be beneficial.

• Alternative resources of energy needs to be explored.

Threats

• The competition in industry of fuel and energy.

• Always changing prices of fuel influence the business of UGI badly.

• With increasing price of oil the price of electriocty also remain volatile and this decrease in consumption of energy resource.

• Other resources of energy for electricity purpose such as solar energy, coal energy can affect the business of UGI.

• Limited market of UGI can offer limited number of consumer in USA.

References

• Official website of company http://www.ugicorp.com/. Retrieved 5th November, 2012.

• Annual report of company 2011 http://investor.shareholder.com/ugi/annuals.cfm. Retrieved 5th November, 2012.

• Financial report by Yahoo finance http://finance.yahoo.com/news/ugi-reports-earnings-fiscal-2012-123000169.html. Retrieved 5th November, 2012.

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