Centrica

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

Introduction

This study of Centrica, which is part of our coverage of the top 10,000 companies worldwide, is regularly updated with the most current information available. To guarantee the accuracy of this data, the updates are made at an accelerated pace.

A full access to this study on Centrica, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections is available for Premium members only.

We look for potential new products and services, anticipate future market trends, and explore possible collaborations between Centrica and other organisations apart from our analysis-focused areas.

Company Description

Centrica is a British multinational energy and services company headquartered in Windsor, England. Founded in 1997, the company is focused on providing energy and services to residential and commercial customers in the UK, Ireland, North America, and Europe. Its main products and services include gas, electricity, and energy-related services, such as green energy and energy efficiency solutions. Centrica also provides energy and services to energy-intensive industries, such as oil and gas, petrochemicals, and power generation.

Industry Overview

Centrica operates in the energy industry, which had an estimated total market size of 8.4 trillion US Dollars in 2018. The industry employs about 10.5 million people around the world, with the majority of employees being based in Europe and North America. Centrica employs around 29,000 people in the energy industry, most of whom are based in the UK. The company also has a presence in the US, Canada, Ireland and the Netherlands.

Industry Classification

In terms of formal classification, Platform Executive has tagged Centrica as a business operating within the Gas 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

Save to Library

Bookmark (0)

To login to your account click here.

Intellectual Property

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

Patent Title: Method and apparatus for permissioning a data feed
Patent ID: US10604869
Date: 2019-07-09

Patent Title: Method and system for collecting data with a mobile device
Patent ID: US10604868
Date: 2019-07-09

Patent Title: System and method for controlling a charging station
Patent ID: US10604867
Date: 2019-07-09

Patent Title: Method and system for controlling an energy storage system
Patent ID: US10604866
Date: 2019-07-09

Patent Title: Method and apparatus for providing an electronic customer dealing platform
Patent ID: US10604865
Date: 2019-07-09

Patent Title: System and method for controlling an energy storage system
Patent ID: US10604864
Date: 2019-07-09

Patent Title: System and method for controlling an energy storage system
Patent ID: US10604863
Date: 2019-07-09

Patent Title: System and method for controlling an energy storage system
Patent ID: US10604862
Date: 2019-07-09

Patent Title: System and method for controlling an energy storage system
Patent ID: US10604861
Date: 2019-07-09

Patent Title: Method and system for controlling meter data
Patent ID: US10604860
Date: 2019-07-09

Patent Title: Method and apparatus for providing a customer interface
Patent ID: US10604859
Date: 2019-07-09

Major Products & Services

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

Electricity and gas supply
Boiler and home care services
Smart home products
Solar panels
Wind and hydro power
Heat networks
Energy efficiency solutions
Gas storage
Financial products
Energy trading and risk management services

Key Competitors

We have identified the following organisations as being key competitors:

EDF Energy
E.ON
Scottish Power
National Grid plc
Associated British Foods plc
RWE AG
Iberdrola
ENGIE
DONG Energy
SSE plc

Unlock this SWOT analysis report

Each detailed study features a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and an expert SWOT analysis, along with a myriad of other sections.

Premium members have FULL ACCESS to this content and approximately 10,000 similar competitive intelligence reports.

Premium membership is just $195 per month, with annual membership at $1,950 / seat.

UNLOCK CONTENT

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. Customers: Centrica’s customers are the primary stakeholders and their needs must be at the heart of the company’s strategy.

2. Employees: Centrica’s employees are an important stakeholder group, and the company must ensure that it offers competitive pay, training and development opportunities.

3. Suppliers: Suppliers are vital to Centrica’s success, and the company must ensure that it has a strong supplier relationship.

4. Shareholders: The shareholders are the owners of the company and should be rewarded for their investment with a good return on their capital.

5. Governments and Regulators: Governments and regulators set the framework for Centrica

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 Centrica 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 Centrica and its position within the marketplace.

Centrica is a UK-based energy company with a focus on renewable energy. The company offers a range of products and services, including electricity, gas, and renewable energy. Centrica is also a provider of energy services, including smart meters, energy efficiency services, and home energy management. The company has a strong focus on customer service and offers a range of energy-related 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:

Innovative Business Model: Centrica has an agile business model that enables the company to quickly respond to changing market conditions and customer needs. This allows the company to develop new products, services and solutions to meet the needs of its customers.

Customer Focus: Centrica has an extensive customer service network that is dedicated to providing excellent service and support. This helps the company to build relationships with its customers and ensure that their needs are met.

Financial Strength: Centrica is a well-established company with strong financials and a diverse portfolio of assets. This provides the company with a strong foundation to invest in new initiatives and expand its operations.

Global Presence: Centrica has a global presence, with operations in Europe, North America, and Asia. This allows the company to access new markets and better serve its customers.

Technological Leadership: Centrica is a leader in the energy industry, with a focus on innovative technologies and solutions. This helps the company to stay ahead of the competition and provide its customers with the best possible energy solutions.

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
Industrial customers
Wholesale customers
Public sector customers
International 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:

Digital Transformation: Centrica will need to rapidly adopt digital transformation technologies to remain competitive in the marketplace over the coming years. This means investing in cloud, mobile, and analytics technology to help better manage their operations and provide better customer service.

Shifting Consumer Preferences: Consumers are demanding more personalised products and services from companies like Centrica. To remain competitive in the market, Centrica will need to focus on understanding and responding to the changing needs of their customers.

Increased Energy Efficiency: As energy costs continue to rise, customers will be looking for ways to reduce their energy consumption. Centrica will need to focus on energy efficiency solutions to help customers reduce their energy costs while remaining eco-friendly.

Increased Competition: The energy industry is becoming increasingly competitive, with a number of new players entering the market. Centrica will need to focus on differentiating their services and products to remain competitive and attract new customers.

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 Centrica 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

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.

Home energy efficiency services: Centrica could offer energy audits, recommendations for energy efficient appliances, and home insulation/weatherization services.

Home automation services: Centrica could provide connected home solutions for customers, such as smart thermostats, voice activated lightbulbs, and automated security systems.

Home energy storage solutions: Centrica could offer customers home batteries and other energy storage solutions to help them store and use their energy more effectively.

Renewable energy services: Centrica could provide customers with renewable energy options, such as solar panels, wind turbines, and geothermal systems.

Connected energy services: Centrica could offer customers a suite of connected energy services, such as real-time energy monitoring, automated energy management, and energy analytics.

Home energy services: Centrica could offer customers home energy services, such as energy consultation, energy efficiency advice, and energy saving tips.

Potential Synergies

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

1. BP
2. E.ON
3. National Grid
4. Siemens
5. Schneider Electric
6. ENGIE
7. Shell
8. Statoil
9. EDF Energy
10. British Gas

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

The Porters 5 forces are:

1. Bargaining power of buyers: LOW

2. Bargaining power of suppliers: MEDIUM

3. Threat of new entrants: HIGH

4. Threat of substitute products: MEDIUM

5. Competitive rivalry: MEDIUM

Centrica scores relatively POORLY in relation to the Porters 5 forces. The company has LOW bargaining power of buyers, MEDIUM bargaining power of suppliers, HIGH threat of new entrants, and MEDIUM competitive rivalry.

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: Centrica's customers are home owners, businesses and government bodies in the UK, North America and Europe who purchase their energy and related services.

Actors: The actors involved in Centrica's operations are the customers, suppliers, employees, shareholders, government and regulatory bodies, and the communities in which Centrica operates.

Transformation process: Centrica's transformation process is focused on providing energy and related services to its customers, using its diverse portfolio of products and services. These include gas, electricity, heating and cooling, storage and renewable energy, as well as more advanced services such as smart meters, analytics and home services.

World view: Centrica's world view is rooted in its commitment to providing a reliable and affordable energy supply, while also reducing its environmental impact. Centrica seeks to provide its customers with the best possible service, while also taking into account the wider environmental, social and economic impact of its operations.

Owners: Centrica is owned by its shareholders, who have a vested interest in the company's financial performance and long-term sustainability.

Environmental constraints: Centrica is subject to a range of environmental constraints, including climate change and energy policy, as well as the cost of energy and the availability of resources. It must also comply with relevant laws and regulations.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Centrica 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. Strong customer relationships: Centrica has over 24 million customer accounts and has strong relationships with many of them.

2. Diversified operations: Centrica has a diversified portfolio of businesses, including gas and electricity supply, power generation, storage and trading, and gas and oil exploration and production. This diversification reduces the company's exposure to any one particular commodity or market.

3. Experienced management team: Centrica is led by an experienced management team with a proven track record in the energy industry.

4. Strong financial position: Centrica has a strong financial position, with a credit rating of 'A-' from Standard & Poor's. The company also has a strong balance sheet, with over £8 billion of assets and £4 billion of equity.

Opportunities

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

1. Develop new energy sources: Centrica Energy should focus on exploration and development of new energy sources, such as wind, solar, hydropower and geothermal, to diversify its energy portfolio and reduce its reliance on traditional energy sources.

2. Increase efficiency: Centrica Energy should invest in technologies and processes to reduce energy consumption and increase efficiency in its operations. This could include investments in energy efficient appliances, smart metering and other energy saving technologies.

3. Expand customer base: Centrica Energy should focus on expanding its customer base by expanding its marketing efforts, launching new products and services, and improving customer service.

4. Improve operational processes: Centrica Energy should strive to improve operational processes by implementing new technologies, streamlining processes and introducing new strategies. This could include investing in automation and artificial intelligence, as well as leveraging analytics to optimize operations.

Weaknesses

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

1. Lack of customer focus - Centrica and British Gas have been accused of putting profits before customers, with the latter recently coming under fire for increasing energy prices while profits soared. This has led to a loss of trust and confidence in the brand, and customers are increasingly switching to other suppliers.

2. Inefficient operations - British Gas has been criticised for its inefficient operations, with a high proportion of customers experiencing issues with billing, meter readings and customer service. This has put additional pressure on the company's finances and has led to a loss of customers.

3. Dependence on fossil fuels - Centrica and British Gas are heavily reliant on fossil fuels, which are becoming increasingly expensive and are facing tougher environmental regulations. This could lead to higher energy prices and reduced profits in the future.

4. Competition - The energy market is becoming increasingly competitive, with a number of new entrants offering cheaper tariffs and better customer service. This is putting pressure on Centrica and British Gas, who are struggling to keep up.

Threats

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

1. Competition: Centrica’s market is highly competitive, and its competitors are constantly introducing new services and technologies to gain market share. As such, Centrica needs to be agile and responsive in order to stay ahead of the competition and maintain its position in the market.

2. Regulatory Environment: The regulatory environment is constantly changing, and Centrica needs to stay up-to-date on the latest regulations and ensure that its services and products comply with them. This can be a challenge due to the complexity of the regulatory landscape.

3. Technological Advancement: As technology advances, Centrica needs to ensure that its services and products remain up-to-date with the latest technologies. This requires a significant amount of investment in research and development in order to remain competitive.

4. Financial Risk: Centrica’s business model is heavily reliant on the energy markets, which can be highly volatile. As such, Centrica needs to manage its financial risks effectively in order to remain profitable and maintain its position 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 Centrica. 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 Centrica, as well as areas where the company needs to improve its operations or strategy.

Company: Centrica is an energy and services company headquartered in the United Kingdom. It is the parent company of British Gas, one of the largest energy suppliers in the UK. Centrica is also a major provider of electricity, gas and home services in the UK, Ireland, North America, and Europe.

Collaborators: Centrica collaborates with a range of partners, including energy suppliers, manufacturers, retailers, and technology companies. The company is also involved in research and development projects, such as developing new energy sources and ways to improve energy efficiency.

Customers: Centrica’s customers include households and businesses across the UK, Ireland, North America, and Europe. The company provides a range of services and products, including gas and electricity, home services, and energy management.

Competitors: Centrica’s main competitors are other energy suppliers, such as EDF Energy and SSE. In addition, the company faces competition from a range of other providers, such as renewable energy companies, technology companies, and independent retailers.

Content: Centrica’s content strategy focuses on providing customers with information and advice on energy efficiency and energy savings. The company publishes blogs, videos, and other content on its website, as well as on social media platforms. The content is designed to help customers make informed decisions about their energy usage and usage costs.

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 Centrica as having an innovation score of C2.

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 Centrica 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:

British Gas energy gas Home Services

Casper Sleep Inc

Safaricom