SWOT analysis of Duke Energy

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SWOT analysis of Duke Energy

This SWOT analysis of Duke Energy aims to provide the readers with a comprehensive insight into the strengths and the weaknesses of Duke Energy. It also aims to examine the opportunities the company should explore and the threats it needs to keep an eye on.

Strengths of Duke Energy

Duke Energy is one of the largest electric power holding companies in the USA. It is a Fortune 125 company and listed in New Your Stock Exchange. It supplies electricity to around 7.4 million U.S. customers. Its Gas Utilities and Infrastructure business unit distributes natural gas to approximately 1.6 million customers in the Carolinas, Ohio, Kentucky and Tennessee (Due Energy Corporation, 2018).

Duke Energy has earned a very good number of awards and accolades which attest to its good employment practices and wide reputation. For instance, it was named one of Forbes’ Best Employers for Diversity in 2018. It also secured its place (5th among gas and electricity companies) in Fortune magazine’s 2018 list of the World’s Most Admired Companies. Likewise, it received Florida’s Business Ambassador Award in 2017 as recognition for its contributions to the state’s economy (Duke Energy Corporation, 2018).

One of the major strengths of Duke Energy is its satisfied customers. The company offers electric rates that are below the national average. It also has a very good customer relationship management system in place. It installed 1.2 million smart meters in 2017. These products and services have helped the company develop an excellent customer base.

Duke Energy’s CSR activities have gained good reputation over the years. For instance, awarding $1.56 in grants million to 46 Florida-based organisations for educational and workforce development initiatives is one of the CSR activities carried out by the company in 2018. CSR activities help Duke Energy build a very good corporate image.

Weaknesses of Duke Energy

Duke Energy has been criticised over the years for a number of reasons that have impacted negatively on the corporate image of the company. For example, Public Campaign, a non-partisan organisation, was very critical of Duke Energy for its spending of $17.47 million on lobbying and not paying taxes during 2008 through 2010 (Caroline, 2012).

Questions have been raised concerning the operational efficiency of Duke Energy. For instance, the company had to apologise to Seminole’s lawmakers in 2017 as it failed to restore power in Seminole and Orange counties following Hurricane Irma. Similarly, the company’s IT system has also been criticised for providing very little and wrong information to the customers.

Opportunities for Duke Energy

There are a number of opportunities that Duke Energy can explore. For example, rising population in the USA is an opportunity for the company. Rising population increases demand for gas and electricity. Likewise, increasing the rates of gas and electricity is another opportunity to explore.

Threats to Duke Energy

Threat is the last element to address in the SWOT analysis of Duke Energy. Competition is a threat. Duke Energy has a number of competitors in the USA. For example, Next Era Energy, Southern Co, American Electric, Dominion Resources, Edison International, PPL, and Exelon are some of the competitors of Duke Energy.

Legal threats sometimes become very challenging as well. For instance, Duke Energy had to agree to pay a $600,000 civil penalty in early 2017 to the U.S. Department of Justice for violating federal antitrust laws in connection with the purchase of a power plant in Florida (Pentland, 2017).

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Last update: 26 May 2018

References:

Duke Energy Corporation (2018) About us, available at: https://www.duke-energy.com/our-company/about-us (Accessed 22 May 2018)

Pentland, W. (2017) Duke Energy Gets Slap On Wrist For Deceiving Federal Energy Regulators, available at:  https://www.forbes.com/sites/williampentland/2017/01/19/duke-energy-gets-slap-on-wrist-for-deceiving-federal-energy-regulators/#3f730e6c6311 (Accessed 25 May 2018)

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Author: Jo David

Jo David has years of experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality and tourism management.