The power industry is comprised of energy suppliers and distributors in electric, nuclear, coal, wind, solar and natural gas technologies. A SWOT analysis of the power industry provides a breakdown of the strengths, weaknesses, opportunities and threats facing the industry, in terms of internal and external components. Although a SWOT analysis could be commissioned for the entire industry, a SWOT analysis could also be commissioned for each power company within the industry.
A SWOT analysis of the power industry's strengths identifies features inside the industry that are high-performing. These features need to be representative of areas over which the industry has a high degree of control. For example, the power industry’s strengths may highlight currently leased drilling sites, low rates of plant accidents, safe nuclear waste removal or energy-efficient turbine technology.
An analysis of the power industry’s weaknesses identifies features inside the industry that are low-performing or inefficient. The features inside the industry need to be representative of areas the industry has a high-degree of control over. For example, the power industry’s weaknesses may highlight a deceasing number of gas stations, increasingly costly electric grids, increasing rates of work-related employee illnesses or decreasing investment in alternative energies.
An analysis of the power industry’s opportunities identifies features outside the industry that are potential goldmines for growth. These features are representative of areas outside the control of the industry. For example, the power industry’s opportunities may include lifted bans on off-shore drilling, increased tax incentives for energy-efficient automobiles, newly laid natural gas pipelines and the seasonal increase in the number of days of sunlight.
A SWOT analysis of the power industry’s threats identifies features outside the industry that are potentially hazardous to continued growth. These features are representative of areas outside the control of the industry. For example, the power industry’s threats may include increasing emissions regulations, less demand for oil and gas, climate change and increased public transportation options.
The Construction Of The SWOT Analysis Chart
A SWOT analysis for the power industry is a two-by-two spreadsheet, where each category is equally represented in one of the four spreadsheet boxes. Inside the spreadsheet is a box at the upper-left marked strengths, a box at the upper-right marked weaknesses, one on the lower-left labeled opportunities and one on the lower-right marked threats.
- pumpjack image by Empath from Fotolia.com