Detailed Business Analysis: Research Portfolio of Thales Group

This report presents a comprehensive business analysis of the Thales Group, a multinational company operating in the aerospace, defense, transportation, and security markets. It begins with an overview of the company, followed by a PESTEL analysis examining the political, economic, social, technological, legal, and environmental factors influencing its operations in France and Australia. The report then applies Porter's Five Forces model to assess the competitive landscape and analyzes the business-level strategies of Thales's vehicle and cyber security divisions. The study highlights the benefits derived from Thales's strategic relationships, including mergers and acquisitions, and concludes with a summary of the company's market position and strategic approach. Key aspects covered include the impact of economic conditions, technological advancements, and legal regulations on Thales's business, along with an evaluation of its competitive advantages and strategic partnerships.

Running head: RESEARCH PORTFOLIO OF THALES GROUP
RESEARCH PORTFOLIO OF THALES GROUP
Name of the student
Name of the University
Author note

1RESEARCH PORTFOLIO OF THALES GROUP
Table of Contents
Introduction......................................................................................................................................2
PESTEL analysis (France and Australia)........................................................................................2
Political factors............................................................................................................................2
Economic factors.........................................................................................................................3
Social factors...............................................................................................................................3
Technological factors...................................................................................................................3
Legal factors................................................................................................................................4
Environmental factor...................................................................................................................4
Key competitors in the market.........................................................................................................4
Business level strategic analysis of Thales’s vehicle division.........................................................5
Business level strategic analysis of Thales’s cyber security division..............................................6
Benefits of Thales strategic relationship..........................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

2RESEARCH PORTFOLIO OF THALES GROUP
Introduction
The aim of the paper is to give a detailed and thorough business analysis of an
international company The Thales group. The multinational company designs and constructs
electrical systems and offers services to the markets of transportation, defense, aerospace and
security (Thalesgroup.com 2018). Over the years, the company has been adopting different
strategies in order to position itself in the concerned industry. The study gives a clear
understanding of the company’s current position in the market. The study begins with the brief
overview of the company and then proceeds with the proceeds with the critical analysis of the
company (Hill, Jones and Schilling 2014). In this regard, the study gives the PESTEL analysis in
which political, economic, social, technological and legal factors will be discussed. Additionally,
the study conducts Five Forces analysis of Porter’s model. In the later part of the discussion, the
study highlights the business level strategy adopted by the company in the context of Bendigo
which is the vehicle division of the company. Along with that, the report analyses the business
level strategy of the cyber-security division of the company. Towards the conclusion of the
discussion, the reports state the benefits drawn by the strategic relationship of the Thales group.
Finally the report concludes by summing up the whole discussion.
PESTEL analysis (France and Australia)
Political factors
The Thales group is not only has its business in France but it has spread its business
centers in other countries. The trade regulations across the globe have become stricter which
demands the company to adhere to the regulations in order to run its business (Newton 2014). It

3RESEARCH PORTFOLIO OF THALES GROUP
has been seen that some companies are to suffer due to not following the regulations. Another
aspect in this regard deserves mention is that governments in different countries have different
rules and regulations (Ayerbe et al. 2014). As the company is spread all over the globe, it is
mandatory for the company to follow all the different trade rules across the world.
Economic factors
The overall global economic crisis across the world has a negative impact on the entire
business world regardless of any sector (Ho 2014). Apart from this, there are several other
economic reformations like Brexit which heavily impacted on the business operation of the
company. Economic situations in France differ from the economic situations of Australia, thus
the company needs to take different strategies keeping the economic conditions of both the
countries.
Social factors
One of the major social factors that influence the business process of the companies is
urbanization (Newton 2014). As the company deals with the technological solutions of the
aerospace and defense sector, therefore, the more cities will urbanize, the more the company will
grow further. The smart city drive has been seen extremely beneficial for the company as it
contributes to the expansion of the aerospace and defense sector.
Technological factors
Technical innovations in the aviation industry create a demand of the technological
solutions which is beneficial for the company and also forces the company to expand further. In
sectors like defense and transportation, the demand of technological advancement is increasing
in a rapid space. Thus it can be said the scope of expansion for the company is huge (Ho 2014).

4RESEARCH PORTFOLIO OF THALES GROUP
Legal factors
The trade laws vary from one country to another (Newton 2014). This demands the
company to secure the trade laws based on each country where it operates. For instance, the trade
law of France and the trade laws of Australia have impose different regulations and directives on
the companies those operate there.
Environmental factor
The recent years have seen a major shift towards the renewable energy in the business
sector. The aerospace and defense is not exempted. The chances of increased of the sales margin
is high if the country focus on the renewable energy for it business process (Newton 2014).
There is growing demand in the aerospace and defense sector regarding innovative solutions in
order to prevent the threats towards the environment. Considering this aspect the company can
further expand.
Key competitors in the market
According to the five forces analysis, there are five major competitors in the aviation
industry which give a tough competition to Thales group (E 2014). To name, Sophos, McAfee
and eSentire deserve mention. The competitors are in the large number in order to have a adverse
effect on the company. The business operation of the company is grossly affected by the
existence of the large number of technological solution providers in the aerospace, defense and
transport sector (Ayerbe et al. 2014). The continuous competition in the industry grossly affect
business process of the company as it requires the company to put best effort to stay in the
forefront. The main competitor among the other competitors in the industry is the McAfee,
which posses a good hold of the customers. In order to offer best services to its customers,

5RESEARCH PORTFOLIO OF THALES GROUP
McAfee exclusively focuses on the quality. It continuously works on innovations in order to
serve new and different in the industry. There is a new invention in the technological sphere
every day, McAfee keep itself always updated with the latest technology in order to offer the
best service to its customers. Most of the customers prefer McAfee and Sophos as per its
popularity in the industry (Voirin, 2015). The service networks of Sophos and McAfee are more
expanded than the Thales group. While Sophos and McAfee provide services at an affordable
prices, the products of the Thales group is quiet costlier as compared to other brands. Sophos and
McAfee have greater customers range as they are not limited to the aerospace and defense
whereas Thales group is limited to the Aerospace, defense and transportation (Haderer et al.
2013). Thus it can be said that the company could not yet reach out customers to that extent as
Sophos and McAfee did.
Business level strategic analysis of Thales’s vehicle division
Porter’s five forces model has been chosen as a business level strategy in order to
understand the business process of vehicle division of Thales (E 2014). Thales group’s Bending
based vehicle division offers vehicle solution to its customers. In bending division, Thales
manufactures different vehicles in the defense industry. The vehicles that the company offers in
the defense sector include ships like Royal Navy Future Carrier, popularly known as CVF,
Future Strategic, Air tanker and so on (Thalesgroup.com 2018). It also manufactures remote
weapon station. By a through five forces analysis, it is understood that there are several factors
which has been proved to be beneficial for Thales (Thalesgroup.com 2018). The economical as
well as political condition of the Bendgo is un-favorable for the company to run its business
practice. As per the scenario, the political condition is stable unlike other regions in the country.

6RESEARCH PORTFOLIO OF THALES GROUP
In order to manufacture vehicles which are used in the defense sector, the company needed a
large extended area (Rothaermel 2015). Bendigo was able to provide the company the large are
for which the company is now able to run its business process smoothly. The effective workforce
is adequate in Bendigo, which is one of the most beneficial factors for the company. In regard to
other factors, the growing sales and revenue record shows that Bendigo has been proved as the
most suitable area for Thales group. Thus it can be said that the economic, social and political
impact Bendigo in the real sense.
Business level strategic analysis of Thales’s cyber security division
Thales group is not limited in delivering services to the vehicle solutions. It has expanded
its business to the sector of cyber-Security by providing security solutions to its customers. In
order to protect computers from several malwares, Thales offer security packages which protect
the personal computers from the virus, malwares and other issues (Indiatsy et al.2014). As per
cyber crime is growing at a rapid speed, the company provides the service of protection. In this
regard, it must be mentioned that there are several other cyber-security providers in the industry.
The continuous competition with the other brand like Sophos and McAfee heavily impacts the
business process of the company as it demands the company to stay stand out among them
(Haderer et al. 2013). Like other brands, Thales conducts a continuous research towards the
further development of its products. However, in this regard, it must be mentioned that to some
extent Thales group is lagging behind as compared to Sophos and McAfee. The business level
strategy thus can be considered as week because the brand recognition is under satisfactory level
(Voirin et al. 2015). In the business level, several business strategies have been taken in order to
secure the productivity of a considerable rate. Along with that the company has been taking

7RESEARCH PORTFOLIO OF THALES GROUP
different measures as well strategies in order to address the issues which affect the overall
business process of the company. The business level strategy of the company also includes the
measures to identify the issues regarding workforce management and resolve them accordingly.
By adopting different business level strategies, Thales group has been able to determine the
actions in order to provide quality service to its customers while achieving a competitive
advantage (E 2014). Other than porter’s generic strategies, there are other strategies too which
have been adopted by the Thales group, are cost leadership, focus and the differentiation.
Benefits of Thales strategic relationship
Popularly known as the strategic business partnership, the strategic relationship has been
assisting Thales group in competing with the leading brands. The shareholders of the company
have been able to mark itself as one of leading companies that provides technical solutions
(MOELYADI 2014). The one of the shareholder can be named is the Association du Personnel
Actionnaire de Thales. The association represents the employee shareholders of the company. It
determines the employee security. At the same time the association plays an important part in the
managerial decision which secures the future by assuring the growth of the company (McAdam
and Marlow 2013). While discussing the strategic relations, merger and acquisition also needs to
be mentioned. Gemalto joined its hands with Thales group towards fulfilling a bigger ambition
of offer latest technology based best service to its customers. According to the merger
agreement, the joint project by Thales group and Gemalto had drawn benefits for the digital
security while it was beneficial for reducing the threat of unemployment as well (McAdam and
Marlow 2013). Thus it can be said that the strategic relationship plays a crucial role in order to

8RESEARCH PORTFOLIO OF THALES GROUP
grow further. Thus it cannot be denied that rather than individually, strategic relations can
generate more revenue from market.
Conclusion
In order to conclude, it can be said that the purpose of the study is to have a close look to
the business analysis of an international company The Thales group. The multinational French
company designs and constructs electrical systems and offers services to the markets of
transportation, defense, aerospace and security. Over the years, the company has been adopting
different strategies in order to position itself in the concerned industry. The paper gave a clear
understanding of the company’s current position in the market. The study began with the brief
overview of the company and then proceeds with the proceeds with the critical analysis of the
company. In relation to the discussion, the study gave the PESTEL analysis in which political,
economic, social, technological and legal factors will be discussed. Additionally, the study
conducted Five Forces analysis of Porter’s model to understand the key competitors of the
company and their present market position. In the later part of the discussion, the study
highlighted the business level strategy adopted by the company in the context of Bendigo which
is the vehicle division of the company. Along with that, the report analyzed the business level
strategy of the cyber-security division of the company. Towards the conclusion of the discussion,
the reports stated the benefits drawn by the strategic relationship of the Thales group.

9RESEARCH PORTFOLIO OF THALES GROUP
References
Ayerbe, C., Lazaric, N., Callois, M. and Mitkova, L., 2014. The new challenges of organizing
intellectual property in complex industries: a discussion based on the case of
Thales. Technovation, 34(4), pp.232-241.
Haderer, N., Rouvoy, R., Ribeiro, C. and Seinturier, L., 2013. Apisense: Crowd-sensing made
easy. ERCIM News, 93, pp.28-29.
Newton, P., 2014. What is the PESTLE Analysis?.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Indiatsy, C.M., Mwangi, M.S., Mandere, E.N., Bichanga, J.M. and George, G.E., 2014. The
Application of Porter’s Five Forces Model on Organization Performance: A Case of Cooperative
Bank of Kenya Ltd. European Journal of Business and Management, 6(16), pp.75-85.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Mori, L., Factors Influencing Employer-Employee Relationship in Strategy Execution in Non-
Govermental Organisation In Nairobi, Kenya (Doctoral dissertation).
MOELYADI, H., 2014. Re-formulasi Strategic Supply Relationship PT. PAL Indonesia
(Persero) (Doctoral dissertation, UNIVERSITAS AIRLANGGA).

10RESEARCH PORTFOLIO OF THALES GROUP
Voirin, J.L., Bonnet, S., Normand, V. and Exertier, D., 2015, October. From initial investigations
up to large‐scale rollout of an MBSE method and its supporting workbench: the Thales
experience. In INCOSE International Symposium (Vol. 25, No. 1, pp. 325-340).