Direct Energy Strengths And Weaknesses

Strengths Direct Energy is considered as the largest retailer of energy and energy services in the North American region. This competitive advantage makes it easier for the company to have a positive result of operation because of the large number of customer base. Based on its website, Direct Energy has more than 6,000 employees that cater to the needs of its vast operation in North America. Currently, the company provides services to over five million homes and business establishments in the North American region. The fact that the company is a subsidiary of Centrica, which is a successful multinational company adds to ability to gain many customers. Further, the strong customer base of the company serves as a helpful element in allowing it to grow steadily. Despite the market setbacks during the recent economic crisis, the past few years showed how Direct …show more content…
One of Direct Energy’s competitive advantages is its ability to adapt to changes in the business environment. An article published in the Harvard Business Review discussed that a company’s ability to adapt to new situations allows it to address uncertainties with an initiative (Reeves and Deimler, 2011). Adaptability translates to the ability of the company to tune in to the various signals that may indicate changes in the operating environment. Direct Energy’s sensitivity to these signals paves the way for its management to refine their business model to fit into the new landscape. In addition to that, the company’s adaptability helps it developing strategies that can support its goal to penetrate other market segments, or to introduce new products and services. For example, in its goal to stay competitive despite the rise of a tighter competition, Direct Company developed an electricity pricing plan where the customers are given an option to adopt a payment