EDF's Global Market Strategy: An Analysis of International Business

This report provides a detailed analysis of EDF, a French multinational electric utility company, within the global marketplace. It examines the concept of globalization and its impact on EDF, including the company's market share, products, and services. The report utilizes analytical tools such as PESTLE and VRIO to assess EDF's external environment and competitive advantages. It also explores various international business theories, including absolute and comparative advantage, and evaluates different international business strategies like global and multi-domestic approaches, as well as entry mode strategies such as joint ventures and strategic acquisitions. The conclusion emphasizes the importance of understanding globalization and strategic tools for effective operation in the global market, highlighting the need for businesses to evaluate their external environment and competitive advantages.

The Global Market
place

Table of content


INTRODUCTION


Overview of the organization.


Globalization


Concept , Analytical Tools & Theories of
international business.


International business strategies.


CONCLUSION


REFERENCES

Introduction
The concept of global market place is refereed to the exchange of goods and services uninhibited by
geographic borders. In an global market place an organization can target and effectively access
relevant customers bases regardless of its overall proximity. For the following presentation EDF has
been taken into consideration which is a French multinational electric utility company and largely
owned by the French state.

Overview of the organization
Background of the organization.
The organization of EDF is a French multinational electric utility company that is majorly
owned by the French state. The organisation headquartered in Paris and operates a diverse
portfolio of over 120 gigawatts of generation capacity in Europe, South America, Asia along
with Middle East and Africa. In the year of 2017 EDF took over the majority of the reactor
business of Areva through a French government sponsored restructuring following financial and
technical problems at Areva.
How long has the organization been operating.
The organization was established in the year of 1946 and has been effectively operation for 76
years. It was established by the French state under the direction of Provisional Government
Minister for Industrial Production Marcel Paul. The organization has its operations world wide
and focuses on provide optimal level of service in an effective and productive manner.

What are the products and services of the organization along with its vision.
The overall vision of the organization is to invent a new energy model to address
the climate cruises in the world. It is also focused on being for efficient and produce low level of
carbon in order to have a positive impact on the environment along with people. The EDF
organization offers service that span from electricity generation and the sale of natural gas along
with electricity to homes and business across various regions.
Market share of the organization.
The market for power supply of major along with averaged-sized non-residential
sites is mainly offered by historical electrical suppliers. Whereas small sites and residential sites
received electricity at regulates tariffs. In context to EDF the organization supplies more than 70
per cent of residential sites at regular tariffs which allows it to have a vast market share.

Globalization
Globalization refers to the growing independence of the world's economic, cultures as well as population.
It allows in cross-border trading relative to goods and service along with technology and establish a flow
of investment, people and information in an optimal manner. In context to EDF, the concept of
globalization allows the business to expand its operation in various countries in order to provide its
services.

Impact of global trade
Global trade allows a business to expand their markets and gain access to goods
and services that otherwise may not have been available domestically. As a result of global trade
the market are more competitive and ultimately results in high competitive prices and
introduction of cheaper products.
Impact of globalization on the organization and the UK economy.
The overall impact of globalization has been positive for EDF as it has allowed
the business to expand into various countries and establish a market through its service. In
addition to this, it has allowed the business to attain the opportunity of optimal growth in an
efficient manner. The organization has a massive impact on the economy of the UK as it
provides over 16% of power supply to the country which makes it essential for the UK's
economy to function an effective manner.

Concept, Analytical Tools & Theories of
international business
PESTLE analysis
It is analysis that allows an organization to critically evaluate various external
business factors that can influence the overall operations of a business. In context to EDF, the
analysis allows the organization to understand and identify external business factors and how
they interact with its operations. Given below is the PESTLE analysis of EDF:
Political:
The organization operates in various counties and how to focus on how the
political policies of the country can impact its operations such as their set legal rules and
regulation as they can impact the operation of the organization.
Economical:
The organization and the management have to consider the economy standpoint
of the country that is operates in as to ensure that it is able to understand aspect such as rate of
inflation along with purchasing power of the region. This allows the business to evaluate aspects
such price of its service accordingly.

Social:
It is imports for the business to focus on provide high level of satisfaction to its
customers through its service in order to ensure it understand their perspective as well as their
preference. This allows the business to develop suitable plans that will help in achieving growth.
Technological:
It is vital for the business to focus on utilizing effective means of technology in
order to enhance its business operation and make their service efficient. It will also allow the
business to achieve its vision of low carbon as well introduce high level of productivity in their
services.
Legal:
The business has to pay emphasis on that is follows all the legal requirement of
the countries that it operates in such as employment laws in order to avoid any form of legal
hindrance. This will ensure that the business is able to conduct its global operation in an efficient
manner.
Environmental:
The organization should focus on utilizing new and advance technology within its
business operation to make their services more environmental friendly. This will help the
business achieve its vision as well as help in development of a positive brand image.

International business theories
Absolute Advantage theory:
This theory is bases on the notion of increasing the efficiency in the production
process in order to gain advantage in the global market and allows an business to ensure it is
able to attract a larger customer base through its services.
Comparative Advantage theory:
This theory when compared to Absolute advantage favours relative productive.
This helps in ensuring that more than one product is created as compared to others and allows in
effective ways of creating service in order to have optimal trading.

Critically analysing of competitive advantage.
It is important for an organization to gain completive advantage in the maker as it
allows the business to attain a larger market share along with profitably. Given below is the
competitive analysis of EDF by utilizing VRIO analysis:
Valuable:
The overall financial resource of the organization of EDF are highly valuable as it
helps the business to invest into external opportunities and combat threats in an effective manner
which provided it competitive advantage in the market.
Rare:
The market share of the organization is rare to be possessed by its competitors as
it has a larger global reach in the market which allows to gain a large market share in an optimal
manner.
Imitable:
The overall structure of the organization is hard to imitate as it is owned by the
French state. This allows the business to have completive advantage in the market as it has
effective organizational structure.
Organisation
The business has an effective brand image due to their optimal services in various
region. This helps the business to gain completive advantage in the market.

International business strategy
Critically evaluating international business strategies.
Global business strategy:
This international business strategy allows a business to leverage economics of
scales as much as possible to boost its overall reach as well as revenue. In addition to this, it
allows a business to gain competitive advantage in the global market.
Multi-Domestic strategy:
This international business strategy allows a business to invest in establishing its
presence in an foreign market and tailors its products or service to the local customer base.
Entry mode strategy into international business.
Joint venture:
This strategy allows a business to establish relations with an existing organization
in the global markets and come together to conduct business operations in an effective manner.
Strategic Acquisition:
This strategy involves buying-out an exiting organization in the global market
and utilizes its resource in an effective manner to conduct business operation in the foreign
region.