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SWOT Analysis of Veolia (strengths, weaknesses, opportunities, threats)

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The core business of Veolia is of course the distribution of drinking water. The company offered various services in the area of water that flowed from this craft. With the acquisitions of competitors and suppliers (horizontal strategy), the company has consolidated its position in the water sector over the years. When contracts with communities came to an end, the company discussed with the authorities concerned on the possibility to extend the deadline, renewing part of the contract.

This strategy allowed Veolia (formerly CGE) to establish barriers to entry for new entrants to the extent that the contracts were lengthening. It was therefore very difficult for competitors to compete with Veolia. However, in 80 years, Veolia has been facing market saturation of the water. The company is therefore offering a more expanded diversification strategy. In this context, Veolia provides services in the areas of energy, waste treatment, public transport, etc.This diversification was mainly due to a demand from customers and Veolia agreed to meet these demands with a view to customer loyalty. This is one of the strengths of the company that took advantage of long-term contracts with established communities.

On the other hand, the second highlight of the company lies in its ability to obtain trade complementarities with communities still in its desire to retain. Veolia operates on a captive market that is to say that competition is significantly restricted by contracts between Veolia and communities. The company offers its services for the distribution of water, and waste management are also conferred with its local presence (local service). The demand and community needs are met and the company has significantly increased its portfolio of activity (eg catering).

Today the company is facing new challenges. Should it continue to diversify and expand its offering for one of its four main activities, namely water, energy, transportation and cleanliness? Is innovation is it still a requirement for success? The company, located across the globe, should it encourage the emergence of new markets or increases its position in certain markets?

To answer these questions, we conducted a market analysis. We chose to proceed as follows: a historical summary of the course of the company now known as Veolia, followed by an analysis of its market, a SWOT analysis and PESTEL. The last part will be devoted to any tracks that may follow Veolia to continue its successful business. Environment has grown strongly in the international situation with very strong French connections. The company focused on areas of high economic development and countries where its business model and ability was to ensure compliance with long-term commitments.

Therefore, after Western Europe, Veolia tackled Eastern Europe and Central Member of the European Union, some Asian countries on target, including China. Major markets are still not open to management by business service providers to the environment, but with great potential (including the U.S.). In recent years, on the occasion of its commercial development, the company demonstrated its ability to adapt proven models to contractual constraints of any kind, in a very large number of countries and a wide range of services.

Tags: Drinking water, diversification strategy, market saturation

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