Northeast Utilities Research Paper Example | Topics and Well Written Essays - 2000 words

Northeast Utilities - Research Paper Example The company that is the subject of this research is Northeast Utilities Industries. This company was formed in 1966 following the successful business merger that occurred between Connecticut Light and Power Company (CL&P), the Hartford Electric Light Company, and the Western Massachusetts Electric Company (WMECO). This merger made the companies come under one management qualifying to be the largest multi-state holding following the Public Utility Holding Act of 1935. Other companies later joined the merger in the subsequent years and in this case, Holyoke Water Power Company (HWP) joined in 1967 and finally, in 1992, Public Service Company of New Hampshire (PSNH) signed a deal to merge with the company. This informs that five companies that were once independent constitute the Utility. In 2010, Northeast Utility further eluded their intention to the merger with NSTAR but maintaining the title as Northeast Utility and this is still a subject of approval. It is worth noting that the co mpany is listed in the Fortune 500 with the headquarters at Berlin, Connecticut. The company also runs several subsidiaries in the business of retailing electricity and natural gas. The company’s customer base in New England is about 2.1 million and this qualifies it to be one of the largest public utilities in New England. In this regard, the company has electric transmission lines covering 3,140 miles with about 32, 802 distribution pole miles. Their natural gas distribution also covers an area of about 5,000 km2.... In any business, it is very important to understand these forces so that one can identify the source of business strength and weaknesses so that the necessary adjustments can follow. In this case, this industry faces fierce competition from other companies providing similar products-competitive rivalry. This includes other companies like, First Energy, UIL Holdings, UNITIL, NSTAR, and EnerNOC (Murray, 2012). The existence of these companies in the provision of the same product has elicited severe competition in the provision of the same service-energy. There is different customer’s loyalty experienced in the market and other factors like switching cost that make the competition based on the existence similar products industries to be fierce. In the industry, there is need to achieve change in different categories; to achieve change in the efficiency of the energy production and distribution, this is aimed at reducing the cost of energy to the final consumers. When the cost of production is reduced, there is possibility of reducing the cost of the final product that goes to the consumers and thus a company is able to cut themselves a niche in the market. In this sense, the factor that is driving change in the company is the need to provide the consumers with products at moderated prizes to acquire a larger share in the market place. The reliability and safety of the product is also a concern of the company, the company dealing in the provision of the utilities tend to have the sense of reliability to the customers so that they do not lose market on that grounds. Competitors in the Industry Like any other business, the provision of the energy in which Northeast Utility is involved is experiencing the same competition from other service providers.