The DONG Energy A/S company is Denmark’s leading energy company. It was formerly only involved in oil and natural gas, but in the 2000s, it expanded to include the electricity market. DONG acquired electrical power producers Elsam and Energi E2 and utility companies NESA, Københavns Energi and Frederiksberg Forsyning. This merger was approved by the EU in 2006. Being Denmark’s largest energy company, it must have a great deal of effect on the oil and energy market in Denmark, and have most of the control over prices. Also, Sweden, Germany, The Netherlands, and other markets that it involves itself in must also feel the effects of Denmark’s largest company. According to Companies and Markets, it is also involved in heat and the operation of power plants. It is also involved in the generation of heat and other energy by harnessing wind. The company still remains involved in natural gas and oil as well as crude oil. It maintains 75 natural gas and oil exploration licenses and production assets, and it is said to have over a million customers (http://www.companiesandmarkets.com/Summary-Company-Profile/dong-energy-a-s-strategic-analysis-review-312321.asp?prk=f9ec5118565014b93b58133bb09a32b5).
In my opinion, the fact that DONG Energy A/S is so involved with different energy resources makes it a fierce competitor. It seems to be dappling in many of Denmark and other countries’ basic energy needs, so it is hard to find something that DONG is not involved with in that region. Other companies in the region may be struggling to keep up with DONG simply because it is involved in so many areas of energy.
- Caitlin McGonnigal
I agree it seems that DONG will become the premier distributor of energy services in all the scandinavian/Northern European countries for the simple fact that it has become so diversified in its operations. I think its important for new companies in the energy industry to follow in DONG's footsteps. In order to be able to survive in case one sector fails or is out matched by it's competitors, it will have other areas to fall back on and strengthen.
ReplyDelete-Jaisukh Samaha
In my opinion it is good for corporations to merger and to go into different fields and create more competition. This will make all companies stronger along with the market itself. This idea to expand into electricity is a great idea on the part of DONG and more companies should follow in their footsteps.
ReplyDelete-Ryan Parker