Thales Group Case Study: Strategic Analysis and Competitor Comparison

1 The case Study of The Thales Group
Assessment Task 3 – Research Portfolio
The case Study of The Thales Group
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2 The case Study of The Thales Group
Executive Summary
This research paper shows case of Thales Group to understand its background. It also shows the
external environment of France, Australia, and UK. Moreover, the report also examines BAE
and Rockwell Collins companies as the main competitors of Thales Group. The paper applies
Porter’s in vi the paper undertakes Porter’s views to clearly understand different market
positions. The last two sections explain the business level strategic analysis of Bendigo vehicle
division and the necessity of forming a good relationship with key stakeholders.
When we look at the company’s website, we find that Thales Group functions in more than 56
nations. This company concentrates in five market segments to manufacture technologically
advanced products for governments, military, organizations, and other planetary agencies. UK,
France and Australia indicate a solid environment for Thales Group to carry out its businesses.
When we locate Bendigo vehicle division in Australia we make international expansion easy. On
the other hand, small markets limits Thales Group from expanding. Thales Group can easily
merge with Lockheed Martin Company to enter the market faster. It also combines opportunities,
utilize many strategies and cost efficiencies.

3 The case Study of The Thales Group
Table of Contents
Executive Summary.....................................................................................................................................2
1. Introduction.........................................................................................................................................4
2. A detailed explanation of the background of Thales group.................................................................4
3. PESTEL analysis....................................................................................................................................5
3.1. PESTEL analysis in Australia.............................................................................................................5
3.2. PESTEL analysis in France.............................................................................................................6
3.3. PESTEL analysis in Unites Kingdom..............................................................................................7
4. Two key competitors to Thales group and the five-force analysis.......................................................8
4.1. Rockwell Collins..........................................................................................................................8
4.2. BAE Systems..............................................................................................................................10
5. Analysis of the five forces..................................................................................................................11
5.1. Power of buyers........................................................................................................................11
5.2. The power of suppliers.............................................................................................................11
5.3. New participants........................................................................................................................11
5.4. The threat of substitutes..........................................................................................................12
5.5. Competitive rivalry....................................................................................................................12
6. A Business Level Strategic Analysis of Thales Protected Vehicle Division – Bendigo.........................12
6.1. Merits of locating in small regional town...................................................................................12
6.2. Demerits of locating in small regional towns...........................................................................12
7. A Business Level Strategic Analysis of Thales Cyber-Security Division...............................................13
8. Benefits of Thales strategic relationship with one shareholder, merger and acquisitions................13
9. conclusions........................................................................................................................................14
References.................................................................................................................................................14

4 The case Study of The Thales Group
1. Introduction
Strategic analysis is very necessary for all business functions. It involves developing a
plan for a business through conducting business research and understanding the environment
in which it operates. Strategic analysis is usually conducted to assist businesses to become
more maintainable, strong, advanced and stay pertinent (Wethington, 2018). The main
objective of this paper is to contact a strategic analysis of Thales group. This group ensures
this is done to discover many things. The paper covers a detailed background of the business,
the analysis of the company’s external environment, the analysis of the five forces, the
strategies at the business level besides the necessity (Kelly, 2016) of developing good
strategic associations with the main stakeholders of the company. In the current situations,
markets usually keep changing all the time hence the necessity of developing effective
strategies that ties them to customers than their competitors. Any company that have better
environment operates well because in most cases they usually comply to legal frameworks,
political rules and laws governing taxations. The five forces are very necessary for enhancing
competition.
2. A detailed explanation of the background of Thales group
Thales group is a French company that operates in many nations. It operates in more than
56 counties. The company designs and builds electrical schemes. The company also provides
aerospace, transportation, protection and security market services as given in the company
website. It is headquartered in the business districts of Paris also known as La Défense
(Wethington, 2018). It is among the 10 largest defense contractors worldwide. The stock of
the group is listed on the Euronext Paris. It has over 64000 employees and 55% of its of its
total sales comes from military sales. The company is the main designer of ship. This make it
to generate more revenue hence continued expansion (Kelly, E 2016). The company has
continued to generate deep knowledge in their areas of operation. The company has made
good and close relationship with local clients. The reason for this is to have knowledge of
their functional decision-making processes and values. This helps the management to endorse
best solutions to their problems. The main customers comprise of the institutions, companies
and government (Thales Euronext Paris 2016).