Eskom is an electricity and energy South African company. The energy and electricity-providing company started its business in 1923. Today, we’ll discuss the SWOT analysis of Eskom; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
The products and services portfolio of Eskom
- Energy
- Electricity generation
- Energy transmission and generation
Subsidiaries of Eskom
- Transpoint
- The Natal Navigation Colliers & Estate Company
- South Dunes Coal Terminal
- Rosherville Vehicles Services
- Mountain Communication
- Gallium Insurance
Statistical facts and figures of Eskom
- Annual revenue: 13.82 billion USD (2022)
- Net income: -1.82billion USD (2022)
- Employees: 43000
- Asset net worth: 52.84 billion USD (2022)
Competitors of Eskom
- Energy and Hydro Quebec
- Direct Energy
- First Energy
- Rpbook
- Vansiho
The SWOT analysis of Eskom would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Eskom SWOT analysis as a business strategy analysis example company as follows;
Strengths of Eskom
Some of the main internal strengths in the Eskom SWOT analysis example company as business strategy analysis are as follows;
Large Network
Eskom has established a very large market network across South Africa and other African countries. For instance, the energy company has an energy and electricity market share of approximately 95% in South Africa; and 45% in other African countries. The large market network and dominant market position would help the energy company to amplify its market reach and network.
Infrastructure
In order to provide electricity, Eskom has established a very large infrastructure of electricity poles, power stations, electric power grids, and other routine maintenance staff. The large and well-developed infrastructure helps the energy company to smoothly perform its various operations and timely provide energy to users across the African continent.
Solid Finances
Eskom has a strong financial position comprising a total asset net worth of approximately 53 billion USD. Solid financial backing helps the energy and electricity company to invest in various types of new projects and handle multiple economic and market recessions.
Business Portfolio
Eskom has a very large business portfolio comprising various subsidiary brands. It shows that the energy company has successfully diversified its business portfolio into various brands. It further strengthens the company’s brand positioning in the energy and electricity market.
Sustainable Energy
Eskom has recently started shifting its focus to renewable sources of energy in order to keep up with the growing customer market trends. The clean energy initiative helps the company to strengthen and clear its brand image in the global market.
Weaknesses of Eskom
Some of the main internal weaknesses in the Eskom SWOT analysis example company as business strategy analysis are as follows;
Poor Environmental Track Record
Eskom has a poor track record of polluting the environment. According to an estimate, the energy brand contributes approximately 45% of the total South African and African carbon emission rate. A poor environmental track record is not good for the company’s reputation and branding.
Controversy
Eskom has been engaged in various types of corruption allegations and lawsuits. They are not only costing the energy company billions of dollars in lawsuits, fines, penalties, and settlement fees; but they are also jeopardizing the brand image and reputation of the company.
Opportunities for Eskom
Some of the main available opportunities in the Eskom SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Eskom should expand its energy and electricity business into new regions, countries, and markets across the world. The global market and the emerging countries hold great growth potential for energy companies; it allows the energy company to increase its market network, sales, and growth.
Portfolio Expansion
Along with market expansion, Eskom should expand its product portfolio by launching new products and services like electric tools, equipment, and applications. The new product lines would help the company to target new segments of the customer market and improve its sales and network.
Strategic Alliance
Eskom should develop strategic alliances and partnerships with other energy and electric brands. The joint venture and collaboration of resources would help the energy brand to produce more renewable energy and offer unique services to the customers.
Threats to Eskom
Some of the main potential threats in the Eskom SWOT analysis example company as business strategy analysis are as follows;
Competitors
Eskom is facing tough competition from other competitive brands like First Energy, Direct Energy, and Quebec Hydro. They all have established a strong market share and their market presence is negatively impacting the sales and profitability of the company.
Regulations
Government regulations are becoming very strict for environmentally un-sustainable companies. Eskom should increase its efforts towards renewable sources of energy, it allows the company to ensure its growth and market presence.
Conclusion: Eskom SWOT Analysis Example Company |SWOT Analysis of Eskom |Business Strategy Analysis
After an in-depth study of the swot analysis of Eskom; we have realized that Eskom is the world’s leading energy and electricity company. If you are learning about Eskom SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
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Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
