Strategic Analysis Areva

PLAN

Introduction 4

I. Diagnosis 5

A. Macro-Environment Analysis 5

1. PESTEL framework 5

2. Key drivers for change 7

3. External SWOT Analysis 8

B. Industry and market analysis 9

1. Nuclear industry ’s Porter 9

2. Areva’s presence within the nuclear industry life cycle 12

3. Strategic groups within the nuclear industry 14

4. Market previsions 18

II.Choices 18A. Key success factors 18

B. Capabilities of AREVA 19

1. Distinctive capabilities 19

2. AREVA’s capabilities 19

C. Final Choice 22

III. Implementation of the choices 22

CONCLUSION 23





Introduction










AREVA was created in 2001 from three main entities:
- COGEMA, now AREVA NC, provides products and services around the fuel cycle. - FRAMATOME,now AREVA NP designs and maintenance of infrastructure of power generation (nuclear)
- TECHNICATOME, now AREVA TA designs and maintenance of nuclear propulsion systems and embedded systems for transport.
These three subsidiaries historical are joined by AREVA T & D in 2004 (acquired from ALSTOM); the subsidiary is responsible for the transmission and distribution of electricity. The BU ENRis a new business unit created in 2006 which is exclusively devoted to energy development renewable. The wind, bioenergy, hydrogen energy and potential solar energy. AREVA becomes the world leader in nuclear, covering all aspects of civil nuclear: from uranium mining to fuel recycling, the electricity transmission to the consumer. It is diversifying its business by opening new horizons and newmarkets further its business through the BU ENR. AREVA’s shareholders (the state primarily through the CEA) encourage the group to sell its T & D2 , to meet the funding requirements for the construction of EPR reactors, the construction starts, the new enrichment plant Tricastin (GB II), exploration and the beginning of operations for new mines, etc. .. (12 billion of funding is needed over 5 years.)I. Diagnosis





Macro-Environment Analysis





We based our external diagnosis on 3 main tools which are the PESTEL framework, the Key drivers for change and the SWOT analysis. We will hereby explain the reasons of these choices. We decided to use the PESTEL framework in order to have an idea of the broad environmental factors that will impact all thecompanies within the industry but to a greater extent AREVA. We decided then to identify the Key drivers for change in order to understand which will be AREVA’s opportunities and threats and what action will be necessary to implement so as to manage them the best way (SWOT).


PESTEL framework


We began our diagnosis by a macro environment analysis based on the PESTELframework.






|Political |Role of the French government in AREVA’s policy |
| |Historical French policy in terms of energetic independence |
| |Rising of ecological parties in the elections|
|Economical |Current downturn in developed countries |
| |Electricity price rising in France |
| |Low interest rates|
|Social |Fear for nuclear power due to Fukushima disaster |
| |Image of the nuclear energy, associated to the nuclear bomb and to Chernobyl explosion |
| |Demographic growth...