Bristol Energy: Globalization, Competitive Analysis & Entry Mode

This report examines Bristol Energy's potential expansion into the European market, focusing on Switzerland and France. It assesses the significance and impact of global trade, analyzes international drivers, and explores expansion opportunities within Europe. The report uses PESTEL analysis and Porter's Five Forces to compare the two countries, evaluates competitive forces, and considers Porter's generic strategies and the Ansoff Matrix. Ultimately, the report recommends Switzerland as the more suitable market for Bristol Energy's expansion, based on a comprehensive analysis of political, economic, social, technological, legal, and environmental factors. The document is available on Desklib, a platform offering study tools and solved assignments for students.

Business and
globalization- Bristol
Energy
Contents

INTRODUCTION.............................................................................................................................3
Background of the company..........................................................................................................3
Importance and impact of the global trade.....................................................................................3
International drivers.......................................................................................................................4
Expansion opportunities in the Europe..........................................................................................4
Overview of Switzerland...............................................................................................................5
Overview of France........................................................................................................................5
PESTEL Analysis..........................................................................................................................6
Competitive forces ( porters five forces).......................................................................................8
Porter's generic strategies and Ansoff Matrix................................................................................9
Ansoff matrix.................................................................................................................................9
Entry mode and market selection.................................................................................................10
CONCLUSION................................................................................................................................10
REFERENCES................................................................................................................................11

INTRODUCTION
Globalization is broader than the international business that describe a shift towards more
integrated global economy including, ideas, beliefs, cultural and many more. In the process of
globalization, a company expands its business in the market of other country. It becomes very
important for organization to expand at global level in order to survive in the market. It make them
more efficient and effective to fulfill customer's requirement at global level (Barada, 2021).
The company chosen in this report is Bristol Energy which is a municipally owned energy supply
firm and founded in 2015. This report will include the significance and effect of global trade,
company contrast between two countries through PESTEL analysis and Porter's five forces,
international market entry strategies , ANSOFF matrix and Porter's generic strategies.
Background of the company
Bristol Energy is a UK based limited company that was incorporated in 2015 by the Bristol
City Council. It is municipally owned energy supply organization. This company basically
supplied electricity and gas to the business and domestic customers across the UK. The firm cited
sustained increase in the wholesale price and securities required in order continue to forward
purchase energy as a reason why it has become untenable to continue to trade. Its vision is a city
where green, clean and an affordable energy is supplied to community by community.
Importance and impact of the global trade
 Acceleration of the globalization since last two decades has been impacted by the
emerging nations notably china, emergence of all these countries has influenced customer
price from the cheaper imports, consumption and increased the surplus beyond demand
(DEAN, & McLEAN, 2021).
 Global trade has broken various barriers it must be measures in its entirety and not only the
financial the effect. Due to the changing demand and continued growth of the globalization
all the stakeholders share common interest to understand key drivers of the international
trade.
 Key driver of the globalization that impact several social grown and other human capital of
country is the artificial intelligence, rapid development in the robotics and technological
revolution. Due to the advanced technology, there is increment in the inequality and

unemployment in some market whereas other market expands and grow enhancing
disposable and the income per capital.
 Global trade gives countries and customers the opportunity to be exposed the goods and
services not available in their own nations or more expensive domestically. Importance of
the globalization was recognized by the political economist such as David Richard and
Adam Smith
International drivers
In internal trade, key drivers are very complex and Bristol energy needs to analyses these
key drivers through some strategies. Pressure of the globalization is omnipresent impacting
national competitive advantages. Key area of for the concern is mentioned below:
 Market drivers- As due to the BREXIT, a new global customer has created in UK and EU
are not part of union. It will boost the invention through the trade agreement with other
nations.
 Cost drivers- If Bristol energy open its energy station in other countries, and then it will
increase volume of the sale in international market. By this, respective company will
become as a multinational concern at global level with a positive economy scale.
 Competitive drivers- To compete with the increasing competition in market, Bristol
energy need to formulate some effective strategies (Majeed, A., and. et. al., 2021).
 Government drivers- Host nations should be very compatible with Bristol energy and
United Kingdom as their legal regulation may become obstacles to their trade.
Expansion opportunities in the Europe
There are around 28 countries in EU and it is largest economy in the world. Growth of this
economy has dragged the European commission maintain open culture of EU is a benefit in the
international business advantages include:
 Biggest sing market globally
 Transparency in the rules and regulations
 A large customer base of around 440 million consumer
 Welcome the trade from developing nations

Bristol energy can develop its market in foreign market through EU and this report is reviewing
Switzerland and France
Overview of Switzerland
The respective country is boasting an efficient and highly automated manufacturing sector.
It produce and consume high quality, the value added sector and customer goods and depict strong
market demand for the high quality goods at competitive prices. Switzerland is also known for
their top tier financial and pharmaceutical industries. Various US companies base Tehran regional
or European headquarters in the Switzerland, drawn to its business friendly legal environment,
excellent human capital, and modest corporate tax rate and world class infrastructure. Switzerland
is a very attractive location for the business. Its multicultural and multilingual citizens can present
marketing changes and business strategies, yet these components make this country a best
potential test market for determining the product's viability to export and make the Switzerland a
hub for the international business activities. This country has cosmopolitan and affluent
population of around 8.6 million people. The foreign national comprise approximately 25% of the
population. Gross domestic product of this country was $748 billion during 2020. According to
the World Intellectual Property Organization, Switzerland is positioned to continue to the excl in
the global trade and the investment as it is most innovative nation among various nations with
highest spending in research and development department as a percent of the GDP.
Overview of France
The France is has talented workforce, an educated population and first rate universities. It
has a sophisticated financial market, modern business culture, innovation business leaders and
strong intellectual property perception. This nation is known for its high speed passenger rail,
extensive roadway, world class infrastructure, maritime ports and efficient inter modal
connections. France was declared as ninth biggest global market for the foreign direct investment
inflow in 2019. There are more that around 28000 foreign owned firms doings business within
France. This country is like a homer for 29 of the 500 largest companies globally. As per the
World Economic Forum, France was ranked as 9th in term of the global competitiveness economic
transformation readiness. It was also ranked at 4th position in “countries with best foreign direct
investment opportunity” trade investment tie-up between France and United State is very strong.
Around $1 billion in the commercial transaction, including French foreign affiliates and sale of the

US takes place very day. France and us have bilateral convention on the investment and bilateral
tax treaty addressing among the other things, tax evasions and double taxation.
PESTEL Analysis
 Political factors- In France, politics have notoriously been problematic. Its some
politicians have voiced discomfort with hiding away when their people protest against
unemployment rates and rights. Switzerland is very stable in term of policies. Their is a
vast majority of the voters being very faithful to their respective parties. It has earned good
reputation for long standing neutrality and its contribution to the global peacekeeping
activities (Młoduchowska, 2021). Economic factors- Switzerland is largest economies in world. In 2019, its GDP was
around $ 703.8 (PESTEL analysis of Switzerland, 2017) Its economies is characteristic by
highly skilled workforce of approximately 5 millions, strong purchasing power, stable
macro environment, low tax rate and highly developed infrastructure. It is common that
foreign national put their lot of money in the Swiss banks, specifically the nation is
considered best in overall the world for the banking. Citizen of France suffer under a
heavy taxes as it had four kind of taxes such as standard rate for the goods and services,
medical prescription, renovation work and transport services. Due to this, business
community also suffer by this as the tax rate is only around 40 %( PESTEL analysis of
France, 2022).
 Social factors- Switzerland is a wealthiest nation globally where life expectancy for
women is 85 years, while 82 years for men. This country is reliant on the foreign
employees as they represent big part of total workforce. Mostly migrants are originally
from India, China, France, Spain, Turkey. Economy impact the social class in France.
Employees are frequently on the strike for various reasons, reducing productivity and
income of those affected. Its citizens are conscious about their health and also buy the
fitness equipment in order to maintain their health and bodies.
 Technology factors- Switzerland is an advanced country and it was named world's most
innovative nation. Its top universities that have garnered a global reputation, playing vital
role in the innovations. Its scientist is also working to carry out robotics, medical and
architectural research in order to improve lives of elderly people. France is most
technologically advanced nation in world wide. These countries rely heavily on internet.

Its government is putting more research into health to provide and managing the quality
health care for its citizens.
 Legal factors- Switzerland contain greater reputation for an independent judiciary.
Individuals whether foreigners or nationals are protected by the law and can expect free
trial. Legal system of this country is characterized by the substantial decentralization given
to half cantons and cantons that decide their own social and economic policies. In France,
legal length of working area is declared 35 hours in all kinds of companies. Workers may
not work more that 4.5 hours without any break. Employment law of French has provision
for workers overtime, sick leave, annual leave and many more (RAHMADITYA, 2021).
 Environmental factors- Switzerland is most beautiful nation in the world. Mount Rigi,
Schweizerischer National park, Rhine Falls and many more attract the people
magnificently. It also faces some issue regarding the environment. For instance, the
climate change can impact negatively. There is huge pressure on country's natural
resources and its many people are concern regarding water and air pollution. In France,
there are various environmental challenges or issues that have raised a concern among
tourist and French residents. For instance, air pollution and an essential environmental
issue in the France.
Entry into Switzerland
Score Switzerland France Recommendation
Political 8 5 Switzerland
Economics 7 4 Switzerland
Social 6 5 Switzerland
Technological 7 8 France
Legal 8 8 Neutral
Environmental 9 7 Switzerland
Total 45 37

By analysis this table, it is recommended to Bristol energy that it should expand its
business in Switzerland.
Competitive forces ( porters five forces)
The porters five forces is a framework which is very useful strategic tool that help to
evaluate the potential opportunities and risk for Bristol energy company. In context of the
respective company its competitive forces are mentioned below:
 Threat of new entrants- Factor that impact the new firm to enter energy business required
huge capital. Therefore, for Bristol energy scope of threat of new entrant is very low as if
new company want to enter in this industry then for their, they need a large amount of the
money which is not affordable by everyone.
 Bargaining power of the suppliers- Big supplier in gas industry is fully integrated which
are active in entire value of the gas sector. Ability of supplier to impact the gas industry
high because of their business engagement and all of the business. If Bristol energy have
less number of supplier then in this case the company has low power rather than its
suppliers (Sassen, 2021).
 Bargaining power of buyers- Main buyer of the gas products are traders, countries,
distribution companies and other etc. The buyer's bargaining power in gas industry is very
low due to nature of this sector. Customers are interest on quality and price of the products.
In relation to Bristol energy, it is clear that only buyer's bargaining power in gas industry is
only what the quality and price of gas they will purchase.
 Threats of the substitute gas industry- Main alternative sources to gas for producing
energy that used for transportation, heating, electricity etc are coal, Nuclear energy,
hydrogen and many more. These alternative sources of the energy have ability to replace
high amount of hydrocarbons use in global energy mix as per their quality, performance
and price. For Bristol energy, threat of the substitute gas industry is very low as it requires
high investment in the research and development which is not possible for all companies.
 Competitive rivalry- Competitiveness of gas industry is essentially intensive. Bristol
energy may face competition from those rivals who has contain high market share in this
industry. To overcome form this threat, respective company need to effort in order to fulfill
the customer’s requirements.

Porter's generic strategies and Ansoff Matrix
These approaches are used to determine the direction of any organization to choose a clear
course in order to be able to beat the competition. These can be applied in product and services in
all industries.
 Cost leadership- In this strategies, company offer service or product with an acceptable
quality and other features to broad set of the customers at low price. Under this strategy,
Bristol energy needs to bring down price of its product with maintaining its quality which
can be affordable by all the customers (Sorensen & Dumay, 2021).
 Differentiation- Product of the company should be different from other competitors in
term of design, feature, durability and functionality etc. For adopting this strategy, Bristol
energy have to provide its service in a different way by innovating something new in their
service which can make them different from others (Zhongyue, 2021).
 Focus strategies- This strategy consist of two costs and differentiation strategy, these
two factors are different only in term of their competitive scope. With this strategy, Bristol
energy need to make such invention in their service which contain both quality including
low price and differentiation. It will help the respective company to face the competition in
market.
Ansoff matrix
It was developed by H. IGOR Ansoff, it is a simple and quick way for the marketers to
analysis the risk inherent in developing their business. It provides four strategies and each
alternative pose differing levels of risk for an organization.
 Market penetration- A company use the same product in existing market with the aim of
increasing market share with a penetration strategy. They execute this strategy by lowering
the price, acquiring the rivals and increase the promotion (Xiong & Yao, 2021).
 Product development- The main focus of the company is to introducing a new product
into the existing market to achieve growth. This strategy can be implemented by
partnerships with other companies to gain access to each partner's distribution channels or
brand and by merging resources.
 Market development- In this the company tries to expand its new market with the same
product. They sell more of the same product to new or different customers. A firm can
expand its market by regionally expanding and internationally expending.

 Diversification- In this the main focus on to enter in a new market with new product. This
strategy required both product and market development. It is very risky because company
trying to sell completely different product in a new market (Tao, 2021, June).
Bristol energy is adopting the market development strategies as it is going to expand its market in
Switzerland. It is expanding its business in international market with the purpose to earn more
market share in foreign country and to grow a large customer base
Entry mode and market selection
By the PESTEL analysis, it is analyzed that Switzerland is best option for Bristol Energy
Company. To enter ion this country respective company needs to select one best entry mode. In
context of Bristol energy, there are some entry mode strategies which are mentioned below:
 Exporting- It involve the direct exporting of company's goods and service from one
country to another country. It help company to protect their patents, trademark, goodwill
and other intangible assets (van Steenbergen, Ramos, & Sousa, 2021).
 Franchising- In this, company establish their presence in oversea market with the minimal
risk, this strategy allow a business to assume risk on the behalf of a company.
 Joint venture- It is best for those organizations which do not mind to share their brand,
expertise and knowledge (Xia and. et. al., 2022).
In context of Bristol energy, it is suggested to this company, that it should adopt the franchising
entry mode as it is a low cost strategy and offer a passive source of the income to respective
company. It will reduce the political risk as franchising partner of this business is a local business
entity.
CONCLUSION
From the above report, it is concluded that, the globalisation is very beneficial for a
business as it help them to earn more market share and revenue. In this report Bristol energy is
going to expand its business in other country for which it has select the franchising as entry mode
strategy. To establish their business successfully it is essential for this company to analysis the
macro environmental factors carefully. It may has face many challenges in international market.
To overcome all challenges, it is essential for this company to formulate some effective strategies
so that it can establish its business efficiently in international market.

REFERENCES
Books and Journals
Barada, N. (2021). STRATEŠKA ANALIZA PODUZEĆA KRAŠ DD (Doctoral dissertation,
University of Split. Faculty of economics Split).
DEAN, J. W., & McLEAN, C. O. L. I. N. (2021). Globalization and Inequality. Globalization,
Poverty, and Income Inequality: Insights from Indonesia, 17.
Majeed, A., and. et. al.,(2021). Modeling the dynamic links among natural resources, economic
globalization, disaggregated energy consumption, and environmental quality: Fresh
evidence from GCC economies. Resources Policy, 73, 102204.
Młoduchowska, P., 2021. The project of implementing an innovative product to the market by
Pruszyński Sp. z oo (Doctoral dissertation, Instytut Organizacji Systemów Produkcyjnych).
RAHMADITYA, R. (2021). EVALUASI STRATEGI BERSAING PADA PT PRIMAINDO JAYA
LOGISTIK (Doctoral dissertation, Universitas Gadjah Mada).
Sassen, S. (2021). How to theorize globalization: a comment. Globalizations, 18(5), 792-793.
Sorensen, T. B., & Dumay, X. (2021). The Teaching Professions and Globalization: A Scoping
Review of the Anglophone Research Literature. Comparative Education Review, 65(4),
725-749.
Tao, Y. (2021, June). The Commercial Feasibility Analysis on Pet Online Diagnosis and
Treatment Platform. In 2021 2nd International Conference on Internet and E-Business (pp.
63-67).
van Steenbergen, D. I., Ramos, P. G., & Sousa, B. B. (2021). Key Drivers of Performance and
Profitability in a Social Business. In Sustainable and Responsible Entrepreneurship and
Key Drivers of Performance (pp. 264-281). IGI Global.
Xia, W. and. et. al., (2022). Investigating the role of globalization, and energy consumption for
environmental externalities: empirical evidence from developed and developing
economies. Renewable Energy, 183, 219-228.
Xiong, X., & Yao, R. (2021). Strategic Analysis of the Catering Industry under Covid-19: a Case
Study in China. In E3S Web of Conferences (Vol. 253). EDP Sciences.
Zhongyue, Y. (2021). Improvement of devepolment strategy of retail in China (using the example
of hema xiansheng).
Online
PESTEL analysis of Switzerland, 2017 [online] Available through
<https://howandwhat.net/pestel-analysis switzerland/#:~:text=The%20next%20element
%20to%20address,Switzerland%20is%20the%20economic%20environment.&text=Its
%20GDP%20in%202019%20was,and%20bounce%20back%20in%202022.>
PESTEL analysis of France, 2022 [online] Available through
<https://pestleanalysis.com/pestle-analysis-of-france/ >

APPENDIX
Financial freedom
Illustration 1: Financial freedom of Switzerland, 2022\
Illustration 2: Financial Freedom of France, 2022.