1. Limited geographical presence - Western Resources Corp operates primarily in the United States, which limits its exposure to international markets and potential growth opportunities.
2. Dependence on coal - The company's primary business is coal mining, which is a declining industry due to environmental concerns and the shift towards renewable energy sources.
3. High debt levels - Western Resources Corp has a significant amount of debt, which can limit its ability to invest in growth opportunities and increase financial risk.
4. Limited diversification - The company's business is heavily focused on coal mining, which makes it vulnerable to fluctuations in commodity prices and demand.
5. Environmental concerns - The coal mining industry is associated with environmental concerns, including air and water pollution, which can lead to regulatory challenges and reputational damage.
6. Competition - Western Resources Corp faces intense competition from other coal mining companies, which can limit its market share and profitability.
7. Limited technological innovation - The company has been slow to adopt new technologies and processes, which can limit its efficiency and competitiveness compared to its peers.
