Voltalia: Analysis of the Renewable Energy Industry in France

This report provides a comprehensive analysis of Voltalia, a French organization operating in the renewable energy industry. The analysis begins with an overview of the French renewable energy market, including key drivers and trends, followed by an external analysis using PESTLE and Porter's Five Forces frameworks to assess the political, economic, social, technological, environmental, and legal factors impacting the industry, as well as the competitive forces at play. The report then delves into an internal analysis of Voltalia, identifying core competencies and utilizing the VRIN framework to evaluate the organization's resources and capabilities, benchmarking against competitors to determine its distinctiveness and competitive advantage within the industry. The report concludes by summarizing the attractiveness of the industry and Voltalia's position within it.

Running Head: BUSINESS & STRATEGIC ENVIRONMENT
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BUSINESS & STRATEGIC ENVIRONMENT

Business and Strategic Environment
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Summary
The market of the France is regularly growing and advanced economy is the important
opportunities for the organizations to grow in the competitive advantage. This report will
analyzed the external and internal environment of the France market through the PESTLE and
porter five forces analysis. It describes the organization political, economic, social,
technological, environment, and legal factors. This also describes the porter’s five forces
analysis. These are threat of the suppliers bargaining power, new entrants, competitive rivalry,
buyers bargaining power, and threats of the substitute. It identifies the organization’s core
competencies which are explored by the VIRO framework to understand the organization
distinctiveness within the industry and competitive advantage within the comparisons to the
competitors.

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Table of Contents
Summary..........................................................................................................................................1
Introduction......................................................................................................................................3
External analysis of the industry......................................................................................................3
Overview of the market................................................................................................................3
Key drivers...................................................................................................................................4
Trends...........................................................................................................................................6
Power within the industry............................................................................................................7
Attractiveness of the industry......................................................................................................8
Internal analysis of the Voltalia.......................................................................................................8
Core competencies.......................................................................................................................9
VRIN analysis..............................................................................................................................9
Benchmarking............................................................................................................................11
Distinctiveness...........................................................................................................................12
Competitive advantage...............................................................................................................12
Conclusion.....................................................................................................................................12
Bibliography..................................................................................................................................13
Appendices....................................................................................................................................15

Business and Strategic Environment
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Introduction
Voltalia was founded in 2005. It is known as the French organization. It is the Mulliez group
organization that builds and operates the power plants through the renewable energy like
biomass, hydro, solar, and wind. It is also the operator on the carbon market by its activities in
the emerging nations as register the projects in the clean development mechanism framework.
The organization has announced that it was preparing for the storing electricity through using the
flywheel (Voltalia, 2020).
The objective of the report is to analyze the internal and external environment of the renewable
energy industry and Voltalia to explore and make the judgment regarding the attractiveness of
the industry and organization distinctiveness. For the external analysis like Porter’s five forces
framework and PESTLE analysis are used in the discussion and identify the key drivers and
trends which indicate the industry attractiveness and power. Core competencies of the
organization are identified and explored through the VIRO framework. This will help to
understand the organization distinctiveness within the industry and competitive advantage
compare to the competitors.
External analysis of the industry
Market overview
The industry of the renewable energy is regularly steady the progress over the years. This nation
has the commitment to the European Union renewable energy directive with the target of
producing the 23 percent of the total energy requires from the renewable energy through the
2020. The renewable energy provides the 33 percent of the energy which is used within the
sector of the heating and cooling, 10.5 percent within the transport sector, and 27 percent within
the electricity sector. It was increased by 9.6 percent in the 2005 and at the end of the 2014 total
requirement of the energy comes from the 14.3 percent of renewable of the energy (European
Union Directive, 2020).
Biodiesel provides the largest share regarding the renewable energy within the sector of transport
with the 2641 ktoe in 2016. Bioethanol delivered the largest share with the 474 ktoe followed

Business and Strategic Environment
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through the renewable electricity at 233 ktoe. In 2016, the stock of the light duty plug within the
electric vehicles which registered in the France has been passed by the 100000 unit. It has made
the nation market the second largest plug within the Europe and fifth at global level (Cobb,
2016).
Key drivers
Key drivers and trends within the industrial renewable energy derived from the PESTLE
analysis. The PESTLE analysis is the tool which is used by the marketers to monitor and analyze
the external market environment factors which have impact on the organization. The PESTLE
analysis is known as the framework to analyze political, economic, social, technological, legal,
and environmental factors that affect the business from the outside (Rastogi, and Trivedi, 2016).
It is flexible and businesses can use within the range of the different scenarios. PESTLE analysis
is very effective as offers the insight about the external factors which affect the organization at
large level. It guides the business management to make strategic decision. The factors of the
PESTLE analysis are used to focus on the most valuable scenarios. PESTLE analysis is used by
the organization to track the environment and launch the new product, services and projects.
 Evolution of the electricity
Evolution of the electricity has grown very fast around the globe. To fill the demand of
electricity huge numbers of renewable energy sources are explored. Sources of the renewable
energy have become more important as producing the more electricity that will deliver the partial
of the entire energy demand by the 2050 (Vijaypriya & Kothari, 2011). Evolution of the
electricity is generated through the wind and solar in France. The solid lines within the plots
present the genuine growth trajectories of the annual generation of the electricity and dotted the
lines which present the projections. This has been observed in France that both solar power and
wind power generation are well ahead of the projected levels. The deployment of the wind power
will accelerate the business procedure to meet the demand. It will make the industry more
attractive. Many organizations have started to use the evolution of the electricity through solar
and wind power to supply the 100 percent renewable electricity to the customers.

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(Elsevier, 2018)
 Economic growth
The economy of the France is diversified. This is expected that it will increase regularly in the
upcoming years with the average of the two percent. The regular growth of the GDP is derived
by the high level of investment and good performances of the businesses. It will provide the
many opportunities to the business in the industry. Organizations with the evolution of the
electricity will become more capable to invest higher amount (Arnold, 2019).

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 Increased evolution of the electricity
The evolution of the electricity through wind and solar power will have the positive impact on
the industry and improves the demand of the organization products. Businesses will have the
favorable support with these initiatives and bring the more confident within the organization
investments (Acar, and Dincer, 2014).
(Chatfield, et al., 2019)
Trends
 Industry
Despite the political and economic turbulence the renewable energy regularly growing and
presence is increasing significantly (Cheng, 2017). Technologies are approaching in many parts
of the world and renewable energy represent the two third of new electrical capacity.
Introduction of the renewables and natural gas blend the strong delivery, flexibility, and access to
the low cost capital which are likely to be the winners in the future within the sector.

Business and Strategic Environment
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 The drive of storage
The forms of the renewable generations are relied on the sources of intermittent natural energy
sources (Abu-Rub, Malinowski, and Al-Haddad, 2014). To improve renewable generation
effectiveness the renewable output requires to become more dispatchable which is easy to
transmit and store to users. The solutions of the fast moving storage with paired renewable
generation can create the more effective generation assets and increase the functioning of grid.
 Improved integration of the digital technology
Renewable energies with the great use of economic, technical benefits, and big data bring and
improve the competitiveness (Zhong, and Hornik, 2012). It will help the businesses to increase
the production availability capacities by reducing the operational costs.
Power within the industry
The analysis of the factors of the competition and forces which affects the industry was
conducted by the use of the Michaels Porter’s five forces approach. Porter five forces approach is
very effective as provides the insight about the industry. It is used with the other models like
PESTLE analysis to provide the accurate view regarding the attractiveness of the industry.
Entry within the industry of renewable energy needs the substantial capital and investment of the
resources (Rothaermel, 2016). It forces to lose the strength as differentiation within product is
very high and consumers prefer the high importance to the different experience of products.
Organizations in the renewable energy industry will face the low threat as regulatory framework
imposes the particular issues to the new organizations. There is low level of threat of entrants.
The availability of the substitute products and services makes the challenging competitive
environment for the businesses in the industry of renewable energy. There is high threat of the
substitute within the industry as customers can use the alternative services and products from the
other industries to satisfy their requirements. The organizations within the industry of renewable
energy will face the high level of threat due to the high number of the substitute products.
The competition within the industry of renewable energy is very high and profits are low as
organizations uses the aggressive pricing strategies to gain the huge number of customers
(Rippey, 2012). Large organizations within the industry are integrated vertically as manufacture

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and supply the products through the suppliers globally. Organization competes on the basis of
the recognition of the products and services.
Suppliers bargaining power reflects the pressure which is exerted by the suppliers on businesses
through the different characteristics like minimizing the availability of the product, minimizing
the quality, and increases the prices Vining, A. R. (2011). Suppliers have the (high) strong power
of bargaining that costs the buyers. It increases the competition within the industry and
minimized the profit and growth of the renewable energy organizations. This presents the high
supplier bargaining power.
This indicates the pressure which customer exert within the business organization’s to get the
high quality products within the affordable values with the excellent services to the customers.
The strong power of the bargaining lower the profitability and make the industry more
competitive. The evolution of the electricity through the solar and wind power in many patterns
spread the buyers.
Attractiveness of the industry
The France is known as the third most market regarding the renewable energy. This shows the
organization strategic orientations contribution to the climate change mitigation and low carbon
economy implementation. According to the External analysis of the renewable industry evolution
of the electricity will increase the wind and solar power products. It will have the positive impact
on the as help to renew and store the energy (Williams, & Figueiredo, 2014). Power of suppliers
is considered as the dominant forces which will minimize the profitability within the industry. It
is a powerful force which will impact the industry through applying the new strategy and
position the businesses within the favor of the other forces.
Internal analysis of the Voltalia
It is known as the exploration of the organization competency, cot position, and competitive
viability within the market. The internal analysis is helpful to measures and provides the
important information about the organizations. The Voltalia is trying to increase the profit
through the promotion of the renewables and natural gas.

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Core competencies
 Knowledge of the product and expertise
The Voltalia has the experience of more than 14 years within the industry with the particular
detailed knowledge of the products and experiences. This kind of particular characteristics
allows the organization to meet the requirements of the customers through providing the right
product. The renewables and natural gas by the replacing approach of the oil and coal will
provide the practical solutions to meet the new organization requirements.
 Organization marketing and sales capabilities
The Voltalia to improve the revenues has transformed the teams and improve the trust. The sales
of the organization have been increased in the number as created the resilient commercial team
of transformation. It includes the HR and professionals to keep focus and track the relevant
metrics. The profit of the organization in 2019 was growing by the 56.2 percent compare to the
54.5 percent in the 2018 (Voltalia, 2019).
 Collaboration with the suppliers
Voltalia uses the supplier evaluation process to evaluate and collaborate with the supplier to
maximize the positive points and decrease the negative points. Organization performed the
activities with the suppliers within the organization and management phases. It makes the
collaboration with the suppliers with the technical support (Voltalia, 2020).
 Knowledge of the local market and the expertise
The Voltalia has enough knowledge of local market and the expertise enough as working within
the industry for more than fourteen years. This has huge network of the customers within the
market and offer the many advantages to the customers. This helps the organization to gain the
sustainable competitive advantage within the nation.
VRIN analysis
It is the resource based view to view the firm and turn to the approaching strategy. This conveys
the business to the bundle of the resources. The combinations of the organization resources make

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the organization different from the other businesses. This is known as the acronym from the
initials of names of the dimensions evaluations value, rareness, imitability, and Non sustainable.
Capability Valuable
(V)
Rare
(R)
Inimitable
(I)
Non
Sustainable
(NS)
Competitive
Implications
Knowledge of
product and
expertise
Yes (Y)
The Voltalia has
the enough
knowledge of the
products
(Voltalia, 2020).
No (N)
It is very rare as
organization
have the
sufficient sources
No (N)
The company
is worthy of
being copied to
competitors
Yes (Y)
It have
sufficient
products
which are
available at
the right
time
(Voltalia,
2020).
Competitive
parity
Organization
marketing and
sales
capabilities
Yes (Y)
The organization
has the enough
capabilities
regarding the
marketing and
sales as
implemented
according to the
requirement
within the
market
No (N)
It is very rare
that Voltalia not
amend the
marketing and
sales capabilities
No (N)
The company
has the
different
strategy
compare to the
competitors
Yes (Y)
The
company
services are
effective to
satisfies the
requirements
of the
customers
Competitive
parity
Collaboration
with the
suppliers
Yes (Y)
The company
has the sufficient
Yes (Y)
Exclusiveness
with the
No
organization
can find the
Yes (Y)
This quality
of the
Temporary
competitive
advantage

Business and Strategic Environment
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collaboration
with the
suppliers
suppliers different
distributor if
unsatisfied
organization
products are
supportive to
the
environment
Knowledge of
the local
market and
expertise
Yes (Y)
The Voltalia has
the good
knowledge of
local market and
expertise of
France (Voltalia,
2020.)
Yes (Y)
It earns higher
level of revenues
No (N)
It is operating
within the
market for
more than
years
Yes (Y)
The high
quality
products has
the huge
demand
within the
market
(Voltalia,
2020).
Sustainable
competitive
advantage
Benchmarking
The Voltalia identifies the core competencies which are benchmarked against the competitor
Engie.
 Local market knowledge of the Europe
The Voltalia core competence is the knowledge about the European local market. This
organization earns the high revenue from the nation. It is expertise which is centered in the
market and sells the product within the environment. The organization has the huge number of
customers and good number of expertise in the market which will help the business to invite the
huge number of customers compare to the Engie.
 Collaboration with suppliers
The Voltalia has the collaboration with the suppliers. There is demand of the high quality
product which is in the demand of the market. The competitor’s direct competency is