The increasing number of household and business establishments resulted in the increased demand for energy and energy services. This serves as an opportunity for the business expansion of Direct Energy to other customer segments, as well as the development of new products and services. According to the Direct Energy website, the company’s operation cates to the energy needs of 3 provinces in Canada, 13 states in the United States, and the District of Colombia (Direct Energy, 2017). While there are companies that try to seize opportunities in gaining market share within the energy sector, Direct Energy can still have a better chance because of the increased electricity and energy demand. Despite the risks posed by the tightening competition in the energy sector, the vast need for energy and energy services as an opportunity to be tapped by the company. The increased number of prospective users of energy and energy services is an opportunity for the company. In this instance, Direct Energy may tap on a specific market or develop a new product that will be offered to customers. This was referred to as a blue ocean, where the company is encouraged to create an opportunity, …show more content…
As noted, government laws and regulations can have a considerable effect on the growth and development of a company. For instance, the failure of a company, whether it is intentional or unintentional can have an implication in the possibility of incurring liabilities. In 2015, Direct Energy faced charges in line with the consumer protection law in Alberta which favored the consumers, the issues were generally associated with billing and contract issues (McClure, 2015). While many of these consumers could reconcile their concerns with the management of Direct Energy, it remains probable that the company may face threats of this magnitude during its