There have been great modifications made in the organization of the electric sector in Europe. It is agreed that the sector management must change and must adapt to the requirements of the European Unique Market, and that the invisible power of the private market must replace the all too visible power of the European governments. The objective is obviously an improvement of the service for the final customer - consumers and producers - and thus of a greater economic effectiveness for the European productions. The European dynamism pushes towards a total opening of the markets. The ultimate objective of the Member States, determinated during the European Council of Lisbon, aims to the development of a full market opening.
EDF's creation is linked to the ambitious program of hydraulic equipment launched a few years before World War 2 by the Minister of Civil Engineering (Ministre des Travaux Publics), confirmed in a difficult time by the organization of Vichy (Comité d'Organisation de Vichy) and reaffirmed in a more ambitious perspective in March, 1946 by the “Plan Monnet”. EDF is the main company for electricity generation and distribution in France. Electricity is produced using nuclear power (74%), thermal power stations (17%) and renewable sources of energy (9%).
The company is a government corporation from that has been around from 1987. The logo was the same until it was changesd in July 2005. It represents the typical French company with the colours of its flag being blue, red and white. On July 8, 2005 the former logo was turned into a “flower bomb” or a kind of wind turbine representing dynamism and the environment. The orange emphasize the working movement and strikes the eyes.
[...] The 2005 financial results confirm the fact that residential consumer tariffs will not move at a higher rate than inflation during the next five years. Through its industrial plan, EDF's objective consists of strengthening its position as an energy company built around a competitive industrial plan and a strong brand image based in France, and at the same time, ensuring profitable business development in electricity, natural gas, services and renewable energy in Europe. Throughout its expected sustained growth and the implementation of its Altitude performance enhancement program, EDF aims to achieve a steady growth of its performance and of its financial flexibility in Europe, as well as confirming its brand image. [...]
[...] Competing situation of EDF in Europe Forces Weaknesses Dominant position in France - very favorable Statute of paid (which offers the means of a policy EDF in France of ambitious acquisition at the - Risk coming from the management European level) of the park of nuclear thermal First European producer of power stations (uncertainties on electricity the cost of the dismantling of the Strong presence with the sites and a cost of management of international one highly radioactive waste) Alliance with Vivendi Environment - Low flexibility of the park of production Acquisition of the foreign - weak Presence in gas companies makes it possible to have - disappointing Performances of the commercial structure and outputs activities in Europe with an aim of constituting - Loss of its competitiveness price multi-service offers following the drastic downward Possibility of proposing a total movements in the majority of the offer for the totality of the sites European countries (until more than of Large accounts 40% in Germany for certain Refusal of the French governments customers) to increase the price (place France in a favorable situation in terms of competitiveness price) Opportunities Threats European Market in recombining - Rise to power of competitors Opening of the capital announced (E.ON and RWE at the head) Porter Matrix The Importance of Brand Management in Value Creation The first step is to ensure identification of the brand within the customers' minds with a specific product class or customer need. [...]
[...] Market share: EDF has the monopoly in France with a market share of 85% (Source: 2005 EDF Annual Report) Source: 2005 EDF Annual Report In European countries, EDF holds a minority of positions in companies, representing themselves not more than 10 to 12% of their national market. In Germany, EDF has 34% of the capital of EnBW, third electrician of the country, far from E.on and RWE. In United Kingdom, EDF is owner with 100% of London Electricity Group which accounts for only 10% of the distribution market in the country. [...]
[...] Which brands of energy products would you consider using? c. Have you heard of EDF? d. Have you used an EDF product? e. When I say EDF, what are the first associations that come to your mind? BRAND JUDGEMENTS: a. How favorable is your attitude toward McDonald's? b. How well does EDF satisfy your needs? c. How likely would you be to recommend EDF to others? d. How good a value is EDF? e. Is EDF worth a premium price? f. What do you like best about EDF? [...]
[...] In order to know how EDF is perceived in France, we decided to do a vox pop: had the monopoly of the distribution for too long now. The opening market legislation regarding electricity is a good thing for customers! We have the choice now”. have nothing against EDF. They provide good services and I never had any trouble with don't care about EDF company; my wife takes care of the bills”. People think that EDF is the only company that delivers electricity for residential and business. [...]
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