International Business and Globalisation: A Case Study of OVO Energy

Business and
globalisation- Ovo
Energy

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
OVO energy overview...........................................................................................................3
Retail supply of energy and home telecommunications........................................................4
The importance of Global trading..........................................................................................4
Expansion opportunities in Europe........................................................................................6
External Environment PESTEL.............................................................................................6
Competitive forces.................................................................................................................6
Porter’s Generic Strategies and the Ansoff Matrix................................................................6
Entry Mode and Market Selection.........................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8
Books and Journals:...............................................................................................................8

INTRODUCTION
Today’s business environment is found to have become complex and competitive
which makes pressure on organisations to expand their business globally (Kharat, 2019).
Globalisation is the process in which organisations are allowed to trade across borders so that
they can run their business internationally and expand their business very well. For the
success and growth of any organisation, it is very important that they need come out of their
comfort zone and try to do some extra efforts. In this context, OVO energy will be discussed
in this report which helps in understanding to expand their business in other countries. OVO
Energy is found to be a British organisation that deals with the energy supplier. It was
founded in 2009 by Stephen Fitzpatrick. This report aims to understand the importance and
impact of global trade. It will also include in-depth awareness which is required to expand the
business internationally. In addition to this, it will also discuss some important theories and
tools which are very important for finding the solutions to problems.
MAIN BODY
OVO energy overview
OVO Energy is found to be an independent energy technology company and supplier.
It is a developer of an energy supply platform that is basically designed to distribute
electricity and gas in the UK. The platform of the company is supporting buying and selling
of gas and electricity to domestic properties (Jahan and et.al., 2021). Their focus is on
enabling customers to use gas and electricity in a greener, simpler and fairer way. It is
founded in 2009 in the UK that offers an unparalleled scope of digital energy services,
technologies in solutions to their customers. In addition to this, it is identified that over
energy is redesigned the energy experience in more green, effortless, simple and fair for each
and every customer. It is identified that OVO is currently running their business and the UK
supply market since 2009 but it is necessary for them to expand their business in other
countries also. But for that purpose, they need to understand the market conditions in an
effective way. Due to Brexit, it is identified that now European Union and UK market has
separated and that's why the Global market in Europe has also become their target which is
really helpful in order to achieve their goals and objectives. They firstly need to expand their
market in Europe because it becomes a big market for OVO energy.

Retail supply of energy and home telecommunications
The energy retail market is found to be the main interface between the energy system
and consumers. It is also identified that the primary mechanism for recovering the cost of
electricity and gas systems is very vital (Cherunilam, 2020). It is found that this industry is
growing only when petrol and diesel are displaced by electricity. It is identified in the UK
that supplying energy in the home involves three important elements such as transporting gas
and electricity, making electricity through the generation and selling it to customers. It is also
identified that the energy market of the UK is regulated by the gas and electricity market
authority which is termed as Office of Gas and Electricity Markets (OFGEM). British gas is
found to be the largest energy company in the UK which is run its business in the global
market and in the same way over energy is also so largest supplier of energy in the UK. But
they are not supplying energy outside the UK and that's why it is important for them to plan
for expansion of business in other countries as well. There is information taken from the
Ofgem analysis of the distribution network operator. In the below-mentioned chart, there is
information about the number of active domestic suppliers by fuel type in the UK are
mentioned. This diagram is helpful in order to understand the dynamics of market
concentration over time. It is identified that from July 2021 to September 2021 there is a
decline in the number of active domestic suppliers are found. It was because of the exiting of
five suppliers in the market.