situation anlaysis
Situation Analysis
To identify current issues affecting Électricité de France (EDF) analysing the macro environment through the PESTE theory and the micro environment using Porter’s Five forces model, a theory which looks into an industry being influenced by forces (Soloman et al. 2010).
The macro marketing environment
Political Issues
With energy supplies from the domestic market decreasing in quantity, energy supplies have become a key issue in UK politics (KEYNOTE 2010). Each political party has a stance on delivering consistent energy to the UK with real worries over households receiving constant electricity (AARDVARK 2011). Political stability is also key and instability can cause a knock on affect. In 2009 Russia had a dispute with Ukraine causing the gas supply to be stopped. As Ukraine was the main ‘artery’ this had an adverse effect on most of Europe’s countries. Lithuania, Slovakia and Bulgaria were affected 85%, 100% and 09% respectively (CNN 2009). Climate change has also affected energy supplies with Nuclear and renewable energy being the preferred, however in the UK there is a strong reserve against Nuclear power plants. Today this is an International issue as climate change affects off countries (KEYNOTE 2010).
Economic Issues
With energy supplies decreasing, vast investment is required to increase the current infrastructure however the economic downturn has led to a lack in credit for major projects(KEYNOTE 2010). The Government’s Energy White Paper in July 2011 indicated that £110 billion was required to provide all the energy demanded in 2020 (ENERGY UK 2011).
Social Issues
As the use of renewable energy increases, this will increase energy prices as infrastructure is completed. Along with the economic downturn, consumers of low incomes and the elderly are finding energy costs a major problem as they have less disposable income (KEYNOTE 2010). As energy consumption is being scrutinised, the government has produced initiatives such as
To identify current issues affecting Électricité de France (EDF) analysing the macro environment through the PESTE theory and the micro environment using Porter’s Five forces model, a theory which looks into an industry being influenced by forces (Soloman et al. 2010).
The macro marketing environment
Political Issues
With energy supplies from the domestic market decreasing in quantity, energy supplies have become a key issue in UK politics (KEYNOTE 2010). Each political party has a stance on delivering consistent energy to the UK with real worries over households receiving constant electricity (AARDVARK 2011). Political stability is also key and instability can cause a knock on affect. In 2009 Russia had a dispute with Ukraine causing the gas supply to be stopped. As Ukraine was the main ‘artery’ this had an adverse effect on most of Europe’s countries. Lithuania, Slovakia and Bulgaria were affected 85%, 100% and 09% respectively (CNN 2009). Climate change has also affected energy supplies with Nuclear and renewable energy being the preferred, however in the UK there is a strong reserve against Nuclear power plants. Today this is an International issue as climate change affects off countries (KEYNOTE 2010).
Economic Issues
With energy supplies decreasing, vast investment is required to increase the current infrastructure however the economic downturn has led to a lack in credit for major projects(KEYNOTE 2010). The Government’s Energy White Paper in July 2011 indicated that £110 billion was required to provide all the energy demanded in 2020 (ENERGY UK 2011).
Social Issues
As the use of renewable energy increases, this will increase energy prices as infrastructure is completed. Along with the economic downturn, consumers of low incomes and the elderly are finding energy costs a major problem as they have less disposable income (KEYNOTE 2010). As energy consumption is being scrutinised, the government has produced initiatives such as