Pacific Gas and Electric Co Pe Pref (PCG_pe) SWOT Analysis / TOWS Matrix / MBA Resources
Electric Utilities
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Pacific Gas and Electric Co Pe Pref (United States)
Based on various researches at Oak Spring University , Pacific Gas and Electric Co Pe Pref is operating in a macro-environment that has been destablized by – technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, there is backlash against globalization, there is increasing trade war between United States & China,
talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Pacific Gas and Electric Co Pe Pref
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Pacific Gas and Electric Co Pe Pref can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pacific Gas and Electric Co Pe Pref, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pacific Gas and Electric Co Pe Pref operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Pacific Gas and Electric Co Pe Pref can be done for the following purposes –
1. Strategic planning of Pacific Gas and Electric Co Pe Pref
2. Improving business portfolio management of Pacific Gas and Electric Co Pe Pref
3. Assessing feasibility of the new initiative in United States
4. Making a Electric Utilities sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Pacific Gas and Electric Co Pe Pref
Strengths of Pacific Gas and Electric Co Pe Pref | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pacific Gas and Electric Co Pe Pref are -
Successful track record of launching new products
– Pacific Gas and Electric Co Pe Pref has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pacific Gas and Electric Co Pe Pref has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Pacific Gas and Electric Co Pe Pref in Electric Utilities industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Electric Utilities industry
– Pacific Gas and Electric Co Pe Pref has clearly differentiated products in the market place. This has enabled Pacific Gas and Electric Co Pe Pref to fetch slight price premium compare to the competitors in the Electric Utilities industry. The sustainable margins have also helped Pacific Gas and Electric Co Pe Pref to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Pacific Gas and Electric Co Pe Pref in the Utilities sector have low bargaining power. Pacific Gas and Electric Co Pe Pref has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pacific Gas and Electric Co Pe Pref to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Pacific Gas and Electric Co Pe Pref has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pacific Gas and Electric Co Pe Pref to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Pacific Gas and Electric Co Pe Pref has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Electric Utilities industry. Secondly the value chain collaborators of Pacific Gas and Electric Co Pe Pref have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Pacific Gas and Electric Co Pe Pref has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Operational resilience
– The operational resilience strategy of Pacific Gas and Electric Co Pe Pref comprises – understanding the underlying the factors in the Electric Utilities industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Strong track record of project management in the Electric Utilities industry
– Pacific Gas and Electric Co Pe Pref is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Electric Utilities industry
- digital transformation varies from industry to industry. For Pacific Gas and Electric Co Pe Pref digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pacific Gas and Electric Co Pe Pref has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Pacific Gas and Electric Co Pe Pref has one of the best training and development program in Utilities industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Pacific Gas and Electric Co Pe Pref is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Pacific Gas and Electric Co Pe Pref is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Pacific Gas and Electric Co Pe Pref emphasize – knowledge, initiative, and innovation.
Weaknesses of Pacific Gas and Electric Co Pe Pref | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pacific Gas and Electric Co Pe Pref are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pacific Gas and Electric Co Pe Pref is slow explore the new channels of communication. These new channels of communication can help Pacific Gas and Electric Co Pe Pref to provide better information regarding Electric Utilities products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative at Pacific Gas and Electric Co Pe Pref, in the dynamic environment of Electric Utilities industry it has struggled to respond to the nimble upstart competition. Pacific Gas and Electric Co Pe Pref has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Pacific Gas and Electric Co Pe Pref has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Lack of clear differentiation of Pacific Gas and Electric Co Pe Pref products
– To increase the profitability and margins on the products, Pacific Gas and Electric Co Pe Pref needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Pacific Gas and Electric Co Pe Pref supply chain. Even after few cautionary changes, Pacific Gas and Electric Co Pe Pref is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pacific Gas and Electric Co Pe Pref vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Pacific Gas and Electric Co Pe Pref, it seems that company is thinking out the frontier risks that can impact Electric Utilities industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Pacific Gas and Electric Co Pe Pref has a high cash cycle compare to other players in the Electric Utilities industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High dependence on Pacific Gas and Electric Co Pe Pref ‘s star products
– The top 2 products and services of Pacific Gas and Electric Co Pe Pref still accounts for major business revenue. This dependence on star products in Electric Utilities industry has resulted into insufficient focus on developing new products, even though Pacific Gas and Electric Co Pe Pref has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee of Pacific Gas and Electric Co Pe Pref is just above the Electric Utilities industry average. It needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Products dominated business model
– Even though Pacific Gas and Electric Co Pe Pref has some of the most successful models in the Electric Utilities industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Pacific Gas and Electric Co Pe Pref should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– From the outside it seems that Pacific Gas and Electric Co Pe Pref needs to have more collaboration between its sales team and marketing team. Sales professionals in the Electric Utilities industry have deep experience in developing customer relationships. Marketing department at Pacific Gas and Electric Co Pe Pref can leverage the sales team experience to cultivate customer relationships as Pacific Gas and Electric Co Pe Pref is planning to shift buying processes online.
Pacific Gas and Electric Co Pe Pref Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Pacific Gas and Electric Co Pe Pref are -
Building a culture of innovation
– managers at Pacific Gas and Electric Co Pe Pref can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Electric Utilities industry.
Leveraging digital technologies
– Pacific Gas and Electric Co Pe Pref can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pacific Gas and Electric Co Pe Pref to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Pacific Gas and Electric Co Pe Pref to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pacific Gas and Electric Co Pe Pref in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Electric Utilities industry, and it will provide faster access to the consumers.
Buying journey improvements
– Pacific Gas and Electric Co Pe Pref can improve the customer journey of consumers in the Electric Utilities industry by using analytics and artificial intelligence. It can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Pacific Gas and Electric Co Pe Pref can develop new processes and procedures in Electric Utilities industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Pacific Gas and Electric Co Pe Pref can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions in Electric Utilities industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pacific Gas and Electric Co Pe Pref in the Electric Utilities industry. Now Pacific Gas and Electric Co Pe Pref can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Pacific Gas and Electric Co Pe Pref to increase its market reach. Pacific Gas and Electric Co Pe Pref will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Pacific Gas and Electric Co Pe Pref has opened avenues for new revenue streams for the organization in Electric Utilities industry. This can help Pacific Gas and Electric Co Pe Pref to build a more holistic ecosystem for Pacific Gas and Electric Co Pe Pref products in the Electric Utilities industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pacific Gas and Electric Co Pe Pref can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Pacific Gas and Electric Co Pe Pref is facing challenges because of the dominance of functional experts in the organization. Pacific Gas and Electric Co Pe Pref can utilize new technology in the field of Electric Utilities industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Pacific Gas and Electric Co Pe Pref can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Pacific Gas and Electric Co Pe Pref to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Pacific Gas and Electric Co Pe Pref External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Pacific Gas and Electric Co Pe Pref are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Pacific Gas and Electric Co Pe Pref business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Pacific Gas and Electric Co Pe Pref demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Electric Utilities industry and other sectors.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Pacific Gas and Electric Co Pe Pref may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Electric Utilities sector.
Environmental challenges
– Pacific Gas and Electric Co Pe Pref needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Pacific Gas and Electric Co Pe Pref can take advantage of this fund but it will also bring new competitors in the Electric Utilities industry.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Pacific Gas and Electric Co Pe Pref will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High dependence on third party suppliers
– Pacific Gas and Electric Co Pe Pref high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology acceleration in Forth Industrial Revolution
– Pacific Gas and Electric Co Pe Pref has witnessed rapid integration of technology during Covid-19 in the Electric Utilities industry. As one of the leading players in the industry, Pacific Gas and Electric Co Pe Pref needs to keep up with the evolution of technology in the Electric Utilities sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pacific Gas and Electric Co Pe Pref can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Pacific Gas and Electric Co Pe Pref prominent markets.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Pacific Gas and Electric Co Pe Pref.
Increasing wage structure of Pacific Gas and Electric Co Pe Pref
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Pacific Gas and Electric Co Pe Pref.
Shortening product life cycle
– it is one of the major threat that Pacific Gas and Electric Co Pe Pref is facing in Electric Utilities sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Pacific Gas and Electric Co Pe Pref Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Pacific Gas and Electric Co Pe Pref needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of Pacific Gas and Electric Co Pe Pref is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of Pacific Gas and Electric Co Pe Pref is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Pacific Gas and Electric Co Pe Pref to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Pacific Gas and Electric Co Pe Pref needs to make to build a sustainable competitive advantage.