Comparison of British Gas and Scottish Power: A Study of Organizational Status, Marketing, Economy, and Market Share

This report compares British Gas and Scottish Power in terms of their organizational status, marketing strategies, economy, and market share. It is found that British Gas is a huge company serving nearly 12 million homes in the UK, while Scottish Power is a subsidiary of Iberdrola group which operates within the UK. British Gas has a functional organizational structure, while Scottish Power is more focused on the development of renewable energy. British Gas has a strong brand image, while Scottish Power is facing challenges related to customer trust and satisfaction. Recommendations are provided for both companies.

Research 2 different
companies and compare

Table of Content
• Introduction
• Comparison of companies
• Recommendations
• Conclusion
• References

Introduction
• In the present era, companies are highly affected with globalization. It has
minimized the restriction on transaction and exchange of goods or service
between different countries. In addition to this, globalization has brought
numerous opportunities for the growth and success of the business entities
(Pourahmadiyan, Ahmadi and Kjeang, 2021). For present report, British Gas
and Scottish Power has been taken into consideration.

Comparison of the companies
• Every company has different status which is the combination of different
elements such as size, location, employees, global or local, organizational
structure and more. It is important to study the status in order to understand
the actual position of the organization.
• Size: In terms of size, British Gas is a huge company that is serving nearly 12
million homes in the UK. It is known as the biggest suppliers of energy in UK
market. Additionally, company is considered as one of the well-known players
within the electricity and gas industry of country.

Cont..
Location: It is headquartered in
Staines-upon-Thames at UK. Apart
from this, it also operated from
different locations of country such
as Leicester, Windsor and more.
Headquarters of Scottish power is
situated at Glasgow Scotland UK.
The corporate offices of the
organization are located at
Warrington, Glasgow and more
places.

Cont..
Local/Global: British Gas operates at different locations of UK. It has head
office and numerous corporate offices in UK. Scottish power is subsidiary of
Iberdrola group which is one of the largest utility companies at global level.
However, the respective company operates within UK with its head office and
multiple regional offices (Scottishpower, 2021).
Organizational structure: British gas is based on functional organizational
structure wherein different departments are handled by different managers. The
managing direction is the top most position of the company and then come to
CFO, CIO and other departmental heads.

Cont…
Marketing: It refers to promote
products or service to grab the
attention of buyers.
Marketing Mix:
Product
Price
Place
Promotion

Cont..
• Branding and Advertisement
• Branding and Advertisement is the crucial aspect of marketing. Branding is the
process of creating a particular image of brand among target segment. In
Advertisement, different methods are adopted in order to promote the product
at wide level (Kinoti and Meru, 2021).British Gas, it is a strong brand which
has formulated positive position in market over the period of time. It comes in
one of the prestigious group of companies in utility industry. On other side,
Scottish Gas is unable to manage good position in the market. It has an overall
customer score of 55% (Best and Worst Energy companies of 2021). The
company looks forward to establish itself as a renewal energy provider.

Cont…
• Economy
• Supply and Demand: In UK, demand of oil, gas and energy resources is
high. People look for the quality products and ready to pay high price for that
(Tarim, Finke and Liu, 2021). In this context, British gas is has the advantage
over other companies that majorly depends on oil as the country is looking
forward to reduce down the emission of green house gases. Demand of gas is
high within the country which is favorable for the company.

Cont..
• Market Share
• British Gas is the largest supplier
of natural gas to domestic
customers in UK. In 2019, it has
28% market share in the utility
industry of country.
• According to the ofgem, Scottish
power has grown its market share
to 9.3 % in the recent years.
21/01
/20

Recommendations
• For British Gas
• British Gas is facing challenge in order to ensure growth in current technological
advance environment. It has direct impact on growth and success of the business
entity. It also affects the competitive positioning of company in market. It is
suggested that British Gas needs to adopt technological advancements and
digitalization in order to ensure growth within Oil and gas industry of UK. It will
enhance the ability of organization to increase supply of the product by opting
for alternative sources of energy in order to meet the growing demand for gas.

Cont..
• For Scottish Power
• Scottish Power is facing challenge related to customer trust, ratings and feedbacks.
Majority of the customers are not satisfied with the services of the company. In this
context, it is suggested that company needs to run suitable campaigns so that they can get
back the trust of customers. For this purpose, they need to follow appropriate advertisement
and promotional events in order to maintain proper interaction with customers.
• It is suggested that Scottish power is required to arrange proper training and development
programs for employees.

Conclusion
• From above discussion, it is summarized that British Gas maintains good
position in the market. On other side, Scottish power also has relatively lower
market share and goodwill in UK. Both the companies work under utility
industry wherein British gas adopts campaigns in order to promote their
services. On other side, Scottish power is using digital ways to attract
customers. It is more focused towards development of renewal energy.

References
• Pourahmadiyan, A., Ahmadi, P. and Kjeang, E., 2021. Dynamic simulation and
life cycle greenhouse gas impact assessment of CNG, LNG, and diesel-powered
transit buses in British Columbia, Canada. Transportation Research Part D:
Transport and Environment, 92, p.102724.
• Leah and et. al., 2017. Development progress on the ceres power steel cell
technology platform: further progress towards commercialization. ECS
Transactions, 78(1), p.87
Online:
• Annual total assets of ScottishPower UK Plc and its subsidiaries
from 2012 to 2020. [Online] Available through:<
https://www.statista.com/statistics/1119831/scottishpower-total-
assets/
>