AGL Energy

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This study on AGL Energy is part of our coverage of the world’s largest 10,000 companies. It is produced and kept up-to-date on an accelerated schedule to ensure the most current content available.

Premium members have full access to this study on AGL Energy, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

Apart from conducting analyses, we also recognise potential new products and/or services, predict future market trends, and forecast how AGL Energy could collaborate with other organisations for mutual benefit.

Company Description

AGL Energy is a leading energy company headquartered in Sydney, Australia. It was founded in 1837 and is one of the oldest energy companies in Australia. AGL Energy's main products and services include electricity, gas, solar and energy efficiency solutions. The company serves residential, commercial and industrial customers in Australia, New Zealand and South East Asia.

Industry Overview

The primary industry in which AGL Energy operates is the energy sector, with a total market size of $1.1 trillion in US Dollars. The energy sector employs over 10 million people in the US, Europe, and Asia. The majority of these employees are based in the US and Europe, while the remainder are based in Asia. AGL Energy operates in many countries and offers a variety of products and services related to the energy industry.

Industry Classification

In terms of formal classification, Platform Executive has tagged AGL Energy as a business operating within the Electricity industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method for Forming a Plurality of Phonocardiograms
Patent ID: 10,934,967
Date: December 22, 2020

Patent Title: Methods for Generating a Three-Dimensional Vector Field
Patent ID: 10,934,942
Date: December 22, 2020

Patent Title: Method and System for Use of an Overlapping Subset of Multiple Classes of Generators
Patent ID: 10,934,871
Date: December 22, 2020

Patent Title: Sensor Apparatus and Method for Determining the Position of a Structure
Patent ID: 10,934,823
Date: December 22, 2020

Patent Title: Apparatus and Method for Automated Monitoring of Power Plant Assets
Patent ID: 10,934,807
Date: December 22, 2020

Patent Title: System and Method for Controlling the Generation of Electricity by a Power Plant
Patent ID: 10,934,732
Date: December 22, 2020

Patent Title: System and Method for Controlling the Generation of Electricity by a Power Plant
Patent ID: 10,934,731
Date: December 22, 2020

Patent Title: System and Method for Controlling the Generation of Electricity by a Power Plant
Patent ID: 10,934,730
Date: December 22, 2020

Patent Title: System and Method for Controlling the Generation of Electricity by a Power Plant
Patent ID: 10,934,729
Date: December 22, 2020

Patent Title: System and Method for Controlling the Generation of Electricity by a Power Plant

Major Products & Services

The main products and/or services commercialised by this business include the following:

Electricity
Natural gas
Solar energy
Energy management services
Home energy efficiency products
GreenPower renewable energy
Energy efficient lighting
Solar hot water systems
Heating and cooling solutions
Home services such as appliance repairs and maintenance

Key Competitors

We have identified the following organisations as being key competitors:

Origin Energy
EnergyAustralia
Alinta Energy
Simply Energy
Momentum Energy
ERM Power
Red Energy
Diamond Energy
Lumo Energy
Powershop

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Envoronmental pressure groups

2. Financial institutions

3. Industry Associations

4. Customers

5. Shareholders

6. Employees

7. Management

8. Partners

9. Regulators

10. Advocacy groups

11. Government

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like AGL Energy different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand AGL Energy and its position within the marketplace.

AGL Energy is a global energy company that provides customers with energy services, including electricity, gas, and oil. The company also provides renewable energy products and services.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Low Energy Prices: AGL Energy offers some of the most competitively priced electricity and gas products in the Australian market.

Innovative Technology: AGL Energy provides customers with access to innovative technology such as smart meters and solar systems. This gives customers the ability to monitor and manage their energy usage more effectively.

Range of Products: AGL Energy offers a wide range of energy products, including electricity and gas, solar energy and energy efficiency solutions. This allows customers to find the right product for their needs.

Customer Service: AGL Energy provides excellent customer service, with helpful staff who are available to assist customers with any questions or queries.

Online Platforms: AGL Energy offers customers access to online platforms such as My AGL, which allows customers to easily manage their energy account from anywhere.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Residential customers
Business customers
Government customers
Small to medium enterprise customers
Corporate customers
Community customers
GreenPower customers
Solar customers
Wholesale customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increasing Renewable Energy Use: With growing customer awareness around sustainability and the environment, more customers are opting for renewable energy sources as opposed to traditional energy sources such as coal and gas. This could mean that AGL Energy could be facing increased competition from renewable energy providers and a decrease in their traditional energy sales.

Electric Vehicles: The increasing popularity of electric vehicles is likely to have an impact on AGL Energy's sales in the coming years. With more customers switching to electric vehicles, there will be a decrease in demand for traditional fuel sources such as petrol and diesel. This could have a negative impact on AGL Energy's sales as well as their customer base.

Decentralised Energy: With the development of decentralised energy sources, such as solar and wind energy, more customers are opting to generate their own energy. This could result in a decrease in customer demand for energy from AGL Energy as well as increased competition from decentralised energy providers.

Digitalisation: With the development of digital technologies, such as smart meters, customers now have more control over their energy usage and costs. This could lead to an increase in customer engagement and customer loyalty, but could also result in customers switching to providers who offer lower energy costs. AGL Energy could be facing increased competition from other providers and a decrease in customer loyalty.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for AGL Energy include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="AGL.AU" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Solar Energy Solutions - AGL Energy could offer solar energy solutions to customers in the form of solar PV systems, solar hot water systems, and energy storage systems.

Home Energy Management Solutions - AGL Energy could provide customers with the ability to monitor, manage, and control their energy usage from a single app.

Home Automation Solutions - AGL Energy could offer customers home automation solutions such as smart lighting, smart thermostats, and home security systems.

Smart Meter Solutions - AGL Energy could install smart meters in customers’ homes to provide them with real-time data on their energy usage.

Renewable Energy Solutions - AGL Energy could offer customers renewable energy solutions such as wind and geothermal energy.

Electric Vehicle Charging Stations - AGL Energy could install electric vehicle charging stations in convenient locations to make it easier for customers to charge their EVs.

Energy Efficiency Programs - AGL Energy could offer energy efficiency programs to help customers reduce their energy consumption.

Energy Audits - AGL Energy could provide customers with energy audits to identify areas for energy savings.

Financing Solutions - AGL Energy could offer customers financing solutions for energy-efficient upgrades. 10. Energy Education and Awareness Programs - AGL Energy could offer customers energy education and awareness programs to help them better understand their energy usage and how to reduce it.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Origin Energy
2. EnergyAustralia
3. Suncorp
4. Infigen Energy
5. Snowy Hydro Limited
6. Synergy
7. CitiPower
8. Jemena
9. AusNet Services
10. Red Energy

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

In relation to AGL Energy, supplier power is LOW as there are many suppliers of energy in the market. Customer power is also LOW as customers are not able to easily switch to another provider. The threat of new entrants is MEDIUM as there are some barriers to entry, such as the need for a large customer base. The threat of substitute products is LOW as there are not many substitutes for energy. Competitive rivalry is HIGH as there are many competitors in the market.

Overall, AGL Energy scores fairly WELL in relation to the five forces model.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: AGL Energy's customers are primarily residential and commercial energy users who source their energy from the company.

Actors: The main actors involved in AGL Energy are the company itself, its shareholders and customers, suppliers, regulators, and the public.

Transformation process: AGL Energy's transformation process involves sourcing energy from various sources such as renewable, coal, gas and hydro power, and then delivering it to its customers. The company also provides electricity, natural gas and renewable energy solutions to customers.

World view: AGL Energy's world view is that of a responsible energy provider, committed to reducing emissions and providing reliable and affordable energy to its customers. The company is also committed to investing in renewable energy solutions to reduce its environmental impact.

Owners: AGL Energy is owned by its shareholders, who are mainly institutional investors and fund managers.

Environmental constraints: AGL Energy must comply with all applicable environmental regulations and standards, as well as any industry requirements as set by regulators. The company must also ensure that its operations are in line with its sustainability goals and objectives.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the AGL Energy business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. AGL Energy is one of Australia's leading integrated energy companies. It is involved in the generation, wholesale, retail and trading of energy in Australia.

2. AGL Energy has a diversified energy portfolio which includes coal, gas, renewable and nuclear power generation. This gives the company a high degree of flexibility to respond to changes in market conditions.

3. AGL Energy has a strong market position in both the retail and wholesale energy markets. This provides the company with a significant competitive advantage.

4. AGL Energy has a strong balance sheet and is well positioned to invest in growth opportunities. This gives the company a significant financial advantage.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Increase customer satisfaction: AGL Energy has the opportunity to focus on improving customer satisfaction by providing a better user experience and customer service. This could include increasing digital capabilities, providing greater transparency on product offerings, and investing in customer service and support.

2. Expand into new markets: AGL Energy has the potential to expand into new markets such as renewables, electric vehicles and energy storage. This would require significant investment in research and development as well as partnerships with technology companies to ensure a successful transition.

3. Strengthen operational efficiency: AGL Energy can look to drive down operating costs and improve operational efficiency by investing in technology such as automation and artificial intelligence. This could result in cost savings of up to 20-30%, while also increasing operational efficiency and reducing the time needed to complete tasks.

4. Enhance pricing strategies: AGL Energy can look to introduce more dynamic pricing strategies to increase revenue, as well as implement more targeted offers to capture new customers. This could involve creating different pricing structures for different customer segments, as well as introducing new pricing models such as time-of-use pricing.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. AGL Energy Ltd has a very high debt to equity ratio, which indicates that the company is highly leveraged and may have difficulty servicing its debt obligations.

2. AGL Energy Ltd has a very low interest coverage ratio, which indicates that the company may have difficulty meeting its interest payments.

3. AGL Energy Ltd has a very low return on equity, which indicates that the company is not generating sufficient profits to cover its equity.

4. AGL Energy Ltd has a very low dividend payout ratio, which indicates that the company is not distributing enough of its profits to shareholders.

Threats

Below is a list of the threats we have identified for the business:

1. Decreasing consumer demand for energy: As consumer demand for energy decreases, AGL Energy is faced with the challenge of reducing costs and becoming more efficient in order to remain competitive.

2. Regulatory changes: Regulatory changes can have an adverse effect on the operations of AGL Energy and may result in higher costs and lower profits.

3. Increasing competition: With more energy companies entering the market, AGL Energy is faced with increased competition which can result in lower profits and market share.

4. Rising costs of inputs: AGL Energy is at risk of increasing costs of inputs such as fuel and electricity, which can result in reduced profits. These strategic and operational threats can be mitigated by AGL Energy by focusing on cost-efficiency measures, adapting to regulatory changes, and developing innovative products and services to remain competitive in the market.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for AGL Energy. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to AGL Energy, as well as areas where the company needs to improve its operations or strategy.

Company: AGL Energy is one of Australia's leading integrated energy companies. It operates a portfolio of energy businesses including power generation, energy retailing, energy markets, and energy services.

Collaborators: AGL Energy has a number of strategic partnerships with other industry players including Macquarie Capital, Origin Energy, and EnergyAustralia.

Customers: AGL Energy is Australia's largest energy retailer, providing energy services to more than 3.8 million customers in Australia.

Competitors: AGL Energy competes with a range of companies in the energy sector including Origin Energy, EnergyAustralia, and Snowy Hydro.

Content: AGL Energy provides a range of products and services to customers, including electricity and gas, solar and battery storage, home energy management solutions, and energy efficiency products. It also offers a range of customer rewards and loyalty programs.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged AGL Energy as having an innovation score of B2.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on AGL Energy forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

If you require a bespoke study on a particular industry vertical, or marketplace we may also be able to help.

Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 6th June 2023

Industry Keywords

Related keywords:

gas Renewable Energy Retail Utility

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