Swot Strength Report

Strengths

Strong market grip

TNB is one of the largest electricity utility companies in Malaysia in terms of market capitalization. It is engaged in the generation, transmission, distribution, and sale of electricity. The company is one of the leading power companies in Malaysia with assets (both current and non-current assets) exceeding MYR110.7 billion as of year 2014, and a customer base of approximately 8.6 million throughout peninsular Malaysia, Sabah, and Labuan.

The company operates six thermal generation plants and three hydro generation reservoirs in Malaysia. As of FY2013, TNB’s generation business unit had an installed capacity of approximately 8,636 megawatts, comprising 4,655 MW thermal, TNB Janamanjung 2,070 MW and 1,911 MW hydro stations including mini hydros. Leading market position in a market with high barriers to entry gives TNB a competitive advantage with a strong brand image.

Continuous improvements towards quality

TNB supplies electricity to approximately 8.6 million customers in Malaysia. The company had

undertaken several initiatives in FY2014 to enhance its service quality for a reliable and continuous supply of electricity to its customers. Also, that is their one of the second Key Result Area (KRA) to deliver higher impact outcomes. It introduced 1 TNB Transformation Programme (1TTP) with six KRA,KRA 1: Enhance Regulatory Engagement, KRA 2: Exceed Customer Expectations, KRA 3: Drive Operational and Cost  Efficiency, KRA 4: Grow Profitable New Business, KRA 5: Transform Organisation and KRA 6: SESB Turnaround. Implementation of 1TTP quality enhances the brand image of the company and enables it to attract customers and increase its market share. This adds to the competitive advantage of TNB.