SWOT Analysis of Xcel Energy

adam May 21, 2012 Oil & Gas No Comments

The Xcel Energy Corporation was founded in 1909 which is actually the industry of electricity and natural gas utility. Xcel Energy Corporation is headquartered in Minneapolis, Minnesota, America and the operations are performed by the President and CEO of the company Benjamin G. S. Fowke III. The company is providing its services specifically in the areas of Texas, South and North Dakota, Colorado, Wisconsin, Minnesota and Michigan. The power sources to generate the electricity and gas used by the comer are biomass, hydro, solar, wind, coal and nuclear powers.

Xcel Energy SWOT Analysis

Xcel Energy Strengths

• The company have involved advanced sort of technology that is much better and competitive in case of the technology used by the competitors.

• The company has strong financial position that supports the production of the products and helpful in extracting the electricity and gas.

• Xcel Energy Corporation is strong enough that it can control and overcome all the barriers and hurdles that appear in the regional areas.

• The company is experiencing the stable business with the huge demand in the market in which it is providing its services.

Xcel Energy Weaknesses

• The debt levels of the company are becoming much higher just to improve the financial structure of the company but that exceeds from the actual production.

• The market shares of the company are declining because of the increase in the unpaid amount that reduces that compatibility in the market.

• Limited excess of supply of the products and services is the weakness for the company because it limits the scope and advantages that might be grow in the company.

• Lack of acquisitions and merger is done by the company that decreases in the cash flow as well as decreases the production level..

Xcel Energy Opportunities

• The Xcel energy corporation has the opportunity to expand its business all over the world and acquire different small firms and businesses especially international businesses in order to have more growth in the sales and revenues.

• The energy produced and supplied by the company should be pure and clean that can enhance and improves the reputation of the company as by the customers.

• The company should try to invent and produce the energy for the customers that can be renewable.

• Xcel Energy Corporation should enhance and combine different product lines, companies and functional areas together in a single line.

Xcel Energy Threats

• The threat for the company is regulation of the business as different lands are taken by the government to have the trade in order to improves the prices

• The price war faced by the company decreases the growth of the company because it is not beneficial for the company to overcome its cost.

• Economical and natural crisis and wars leads the Company to be faced by the depression phase.

• The minimum amount of supply to the selective areas is the drawback for the company as regarding the other companies because it is the opportunity for them to expand their businesses.

References

• www.xcelenergy.com, accessed on May 17, 2012.

• Xcel Energy Inc. (XEL) – Financial and Strategic SWOT Analysis Review (2011). Reference code:GDPE7647FSA.

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