Poweo: David and Goliath in the French Electricity Market Harvard Case Solution & Analysis

INTRODUCTION:

BACKGROUND OF THE STUDY:

The case study is about the challenges and the issues that the private electric power supplier company, Poweo, is facing. The French electric supply market is a very centralized industry, which is firmly in the control of the government of France.Poweo is a private electric supplier organization that operates in the country and it is run by Charles Beigbeder. He is the founder and the person in charge of the business operations of the company.

RESEARCH PROBLEM:

The main supplier of the electricity to the population and corporations of the country is EDF. The company is a government owned organization and it has the most dominating market share of the industry of the country. The infrastructure of the organization is vast and comprehensive that it is not easy for any private organization like Poweo to directly compete with it in the market. The distribution and the transition lines of the country also come under the authority of entities that are the subsidiary of the EDF.
The pricing scheme and the tariff rates that the government of France has devised for the electric services are also very low and below the operations costs of the private entities like Poweo that it is simply impossible for them to remain or become a profit making organization.

RESEARCH QUESTIONS:

The problem for the management of the company is simply how to avoid losses of the business and simultaneously how to increase the market share of the company. The government of the country has vowed to make reforms so that the market and the industry become contestable and computable fairly. The management of the organization is under a jinx of whether to wait and see how the legislation turns out or invest in the new CCGT plant in the country.

SINGNIFICANCE AND AIMS AND OBJECTIVES OF THIS RESEARCH:

The aims and objectives of this case study are to analyze the overall business environment of the energy sector industry and its environment and particularly from the perspective of the Poweo energy supply company. This case study provides in-depth analysis of the situation for the management of Poweo and to all the private entities thatare either operating or entering the French market. The gives this case study immense significance as far as the management of Poweo is concerned.

OVERVIEW:

Poweo is a private electric supplier organization that works in the country and it is led by Charles Beigbeder.The problem for the management of the society is simply how to deter losses of the organization and simultaneously how to increase the market portion of the company. The tariff rates that the government of France has devised for the electric services are also very subsidized to counter the vulnerability of the basic need of the people and simply below the operations costs of the private entities such as Poweo that it is simply impossible for it to remain or become a profit making organization.

The issue that the management of the organization is facing is of strategic planning in nature as the political influence of the government of France remains extraordinary because itis also a stakeholder in the electric power industry.
The government has approximately more than 80% stakes in EDF, which is the most dominant organization of the electric power industry.In addition, the economic condition of the country is also not very satisfactory due to the global recession and because of this the usage and consumption of electricity has also reduced throughout the country and as a result, the revenues and growth of the company have also declined....................................

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