In-Depth SWOT Analysis of NTPC – India’s Largest Power Producer

In our previous blog, we did a comprehensive SWOT Analysis of General Electric, here we will be doing an in-depth SWOT Analysis of NTPC.

NTPC is Indias largest power producing company. It is also one of the best companies to work in India. 

It has gained such large success in its industry with the use of proper marketing techniques. However, it can improve its marketing techniques with the use of digital marketing as most people are on digital platforms nowadays and digital marketing is one of the most essential means of marketing for this era. If you are interested in learning what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us keen to know how NTPC has gained such large success in its industry. To understand that we have given an in-depth SWOT Analysis of NTPC. But before we start with its SWOT Analysis let us learn about NTPC as a Company, its services, competitors, financials, and more.

About NTPC Limited

NTPC Limited (NTPC) is a power utility having a presence throughout the whole value chain of power generation. It generates electricity using a combination of hydropower, nuclear power, and renewable energy sources. It was established in the year 1975 by India’s former Prime Minister Indira Gandhi. NTPC is headquartered in New Delhi, India.

It is in charge of power plant design, engineering, building, and operation. NTPC provides advisory services for the construction and development of power plants to both domestic and foreign companies. Commerce, rural electrification, electricity professional training, ash management, and coal mining are among its other activities. The company runs a variety of coal, gas, hydro, and renewable power facilities in India. 

NTPC’s Vision is to be the world’s foremost electricity firm, boosting India’s economic development and its mission is to provide dependable electricity and related solutions in a cost-effective, efficient, and environmentally responsible way, all while being innovative and agile.

In 2019, NTPC was named a “Laureate” for regularly placing among the “Top 50 Best Companies to Work For in India” in the Great Place to Work and Economic Times surveys for the past 11 years. NTPC was also named the best among power supply units and in manufacturing.

 

 

Services of NTPC

NTPC is the countries largest power producing company thus it provides it customers with different products in the market to maintain its position. Following are some of the products that NTPC provides:

• Consultancy
• Power Management Institute
• Power generation

 

Close Competitors of NTPC

NTPC faces large competition in the market from some strong players in the market. Some of the top competitors of NTPC are as follows:

• RusHydro
• NextEra Energy
• Exelon
• Korea Electric Power
• CPC
• Hindustan Power
• Tata Power

 

Now that we know about the company let us start with the SWOT Analysis of NTPC.

 

SWOT Analysis of NTPC Limited

 

SWOT Analysis is the study of NTPC’s Strengths, Weaknesses, Opportunities, and Threats. It helps NTPC to know where it stands in the market by giving them a broad idea about the business. 

Let us start with the SWOT Analysis of NTPC by starting with the Strengths of NTPC.

 

Strengths of NTPC

Strengths are the positive factors of NTPC which help the company stay at the top in the market. The following are the strengths identified in National Thermal Power Corporation’s (NTPC):

1. Workplace culture and personnel practice – NTPC provides its employees with a favorable condition to work in and also gives them personnel practices that are favorable to employees. Theus making them efficient in their work towards the company.
2. Plant production procedure – NTPC uses an efficient production process in the company that helps it to get more output. 
3. Project management system – NTPC has a fully integrated project management system that helps the company to make manage things properly and efficiently. Project completion is efficient and timely, and all of the company’s projects are well-planned and executed on time.
4. Decades of expertise – NTPC has decades of experience in the industry which makes it creditable in the market. 

 

Weaknesses of NTPC

Weaknesses are the flaws that a company has. These are the internal factors that affect the companies growth. NTPC needs to take care of such flaws and try to eliminate them as soon as possible. Following are some of the weaknesses of NTPC:

1. Depleting raw material – The raw material used in the business are non-renewable and are now depleting. Thus affecting the production process and capacity of the company due to the increasing prices.
2. Government action – The frequently changing government actions can cause activities to be disrupted in the business which can lead to a lot of wastage in the production process.
3. Electricity Act – In India, the prices of electricity are determined by the electricity act which all the companies need to follow thus creating a cut in the profit of the business than the desired returns.

 

Opportunities for NTPC

Opportunities are the external factors that help NTPC grow in the market by capturing the potential places where it can expand its business. NTPC needs to use these opportunities properly and make them their strengths. The following are the opportunities identified for (NTPC) National Thermal Power Corporation:

• A huge demand – There is a large demand in the market due to the decrease in the supply. Thus NTPC needs to arrange sources from the production and be the one capturing the market with their products.

• Energy consulting service – As the need in the economy increases people are more interested in knowing about things thus NTPC can enter the energy consulting services which will help them create more customers for their products.

• Strong online presence – As most people are going online now it is very important for businesses to go online to keep their customers engaged and aware of their products and services. This can create a good relationship between the customers.

 

Threats for NTPC

Threats are the factors that can be can create a negative effect in the processing of the NTPC. these are the external factors that a company needs to take care of and be aware of so that they can take proper precautions. Following are some of the threats for NTPC:

• Growing production costs – The cost of production is growing as the raw material prices are increasing. This can result in the customer shifting to another company.

• Competitors – There is large-scale rivalry from emerging private-sector businesses. Every new business comes with innovative marketing techniques or new services. Resulting in the customers shifting their preferences.

 

With this, we have reached the end of the SWOT Analysis of NTPC. This study helps NTPC to know where they stand in the market by giving them a broad overview of the business.

Conclusion

On the study of the SWOT Analysis of NTPC, we have known that it is the largest power producing company in India. It has a good Workplace culture and personnel practice with decades of experience with them. It can create a good online presence in the market due to the increasing demand. Even with such positive points, it has some flaws in the market which makes them fall behind.

The growing competition and the decrease in raw material creates an increase in the price of the products thus this can create a negative impact on the products. They can eliminate the competition by creating a good online presence in the market with the help of digital marketing as most people are on digital platforms and it is easy to cater to them. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you would like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

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