Areva chine

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Analyze its Chinese Market entry modes and competitive strategy, and Regional Headquarters’ Role and Functions within the Whole Organization.


AREVA is a French Company created in XXXXX after a decision made by the French Government to diversify the French Industry activities and to become the leader in the Sustainable Electric and more specifically the NuclearIndustry.
In 2005, AREVA Group bought from one of it’s competitor, the German Company ALSTOM, one of its branche specialized in the Trade and Distribution of Electricity (T&D).
In XXXX, the T&D Branch of ALSTOM enter the Chinese Market buy creating a XXXXXX.

ALSTOM Entry Modes in the Chinese Market and AREVA T&D follow up, Why enter theChinese Market? How? (Pg37)

China and the energy market: some important dates
1993: China become net importer of petrol (consumption>production = more than 3 million of barrels per day)
1997: Signing the Kyoto protocol
2001: China's accession to WTO
2002: Reform of the electricity market
2003: Shortage of electricity - China becomes 2nd largest importer of oil
2004: Acceleration of the nuclearprogram
2005: Creation of an energy ministry
2006: Law on the ENR
2020: China aims to quadruple the GDP

China’s energy resources:
- Map of china’s energy resources


- China’s energy situation
Four main sources of sources in China
- Coal: China is the largest and consumer of coals in the world (the coal resources ranks number three in the world). In 2006 the hard coalproduction was 2,481 million tons, 46% of the world production. Coal resources are located in the northern and western part of the country. The main issue is all industries are located in the eastern part of country so transportation systems are needed to transport coal to the eastern part of the country. The other issue with coal resources is that it appears that the coals mines are very dangerousbecause the numbers of people that have died while extracting coal are the biggest in the world.
- Oil : China’s oil resources stood at 2.3 billion tons in 2004. But the demand is increasing and to respond to this demand, China has to import from other country. This shows the T energy independence of the China for the oil energy so the price for oil and therefore electricity depend on othercountry.

- Gas : In China, gas are mainly use for fertilizer plants and only 13% of the domestic production is used for the electricity generation.

- Hydroelectricity : Hydroelectric energy represented only 6% of China’s primary energy consumption in 2005. But this kind of energy will increase because of the development of the western part of China. Nowadays, there are 20,000hydroelectric dams in China and the biggest illustration for the development of hydroelectricity is the actual construction of the Three Gorges. But dams construction brings important environmental issues also social issues because of the relocation of the inhabitants.

- China’s energy bilan

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| |Among highest in world |
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