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Spain Analysis

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Submitted By mickey540
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Our product: ALSTOM: (very) HIGH SPEED TRAIN

STUDIED COUNTRY: SPAIN (Europe) Specificities of International Marketing

INTRODUCTION:

ALSTOM: 2 products selected:

http://www.hellopro.fr/images/produit/

Very high speed:
Following on from the success of the TGV, Alstom has developed the fourth generation of very high speed trains: the AGV (Automotrice Grande Vitesse). In 2007, Alstom et a new world rail speed record of 574.8 km/h.

High speed :
With its tilting train technology, the Pendolino can travel at speeds of up to 250 km/h, without requiring specific changes to the infrastructure. Alstom has developed a range of regional trains that are reliable, efficient and comfortable. http://www.alstom.com/home/activities/rail_transport/from_the_tramway_to_the_agv/ 2010

I COUNTRY PRESENTATION: SPAIN

A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986) gave Spain a dynamic and rapidly growing economy and made it a global champion of freedom and human rights. www.cia.gov (extracted from Country Introduction feb. 2010)

http://www.voyage-net.com/bons-plans/espagne.php

Political regime: constitutional monarchy: * Head of State: King Juan Carlos I, since 22 November 1975 * Head of Government: President of the Government: José Luis Rodríguez Zapatero, elected 14 March 2004. https://www.cia.gov/ from World Factbook (2010)
Capital: Madrid (and largest city- population 2009 = 6 321 398) http://www.populationdata.net/index2.php?option=pays&pid=62&nom=espagne from Instituto Nacional de Estadistica (2009)

Total Area: 504 782 km²
Population: 45, 8 millions
Currency: Euro (€) http://europa.eu/abc/european_countries/eu_members/spain/index_fr.htm Languages: * Castilian Spanish (official) 74% * Catalan 17% * Galician7% * Basque 2% http://www.atlas-francophone.refer.org/general/gene-069.htm Economic area:
EU accession: 1st January 1986
Engaged during the sixties, economic development of Spain was great; with a fast modernization of the social structure, nowadays close to European standard.
But the unemployment level is still the highest of the European Union. (More than 17% in 2009) http://www.leparisien.fr/une/l-espagne-detient-le-record-du-chomage-02-03-2009-427428.php http://www.europa-planet.com/espagne/economie.htm http://www.lemonde.fr/europe/article/2009/04/24/le-taux-de-chomage-explose-en-espagne-culminant-a-17-36_1184874_3214.html Imports: Partners: * Germany 14.5% * France 11.1% * Italy 7.4% * China 6.2% * UK 4.5% * Netherlands 4.4% https://www.cia.gov/(2008) II SPANISH OFFER

1) “La RENFE”
Train is an original option to move in Spain. The national company of railway is « la RENFE », Spanish equivalent to French SNCF.
The lack of modernism for some ways is compensated by low prices. But prices are relatively secure during the year. http://www.enespagne.com/train_espagne.html http://www.renfe.es/

2) Spanish railway
Organisation: Spanish railway is well-developed.

It is equipped to use our two products: the AGV and the Pendolino. http://www.cetmo.org/pdf/scetfer_espagne.pdf Number of travellers (millions by km):

The number of travellers by train is still growing since the eighties, actually is about 21 000 millions travelers by kilometers; so it’s an opportunity for our company, by the possibility to sign new contracts in the future. http://perspective.usherbrooke.ca/bilan/tend/ESP/fr/IS.RRS.PASG.KM.html By : La Banque Mondiale (2008)

3) About competition:

The main competitors on the national Spanish railway market are: * CAF: Construcciones y Auxiliar de Ferrocarriles
CAF profits amount to 124.3 million Euros at the end of 2009.

http://www.caf.es/ingles/home/index.php

* TALGO www.talgo.com/

* SIEMENS : profits in 2008 : 226,2 millions € https://www.swe.siemens.com/FRANCE/WEB/FR/STS/Pages/accueil.aspx http://www.far.be/sodia.org/vf/alstom/espagne/ecoesp.htm by www.fomento.es/ in2008

4) Projects * A tunnel between Spain and Morocco and North Africa under Strait of Gibraltar is studying. * Spanish government put in place a strategic plan in 2005 to develop the railway network, to connect Spain with Europe. Many lines will be built to make Spain the biggest railway network of the world, with France and Japan. http://www.gpso.fr/projets_espagne.html by www.fomento.es/ in2008

http://www.espagne-facile.com/train-en-espagne/954/ February 2008 www.fomento.es/

III DEMAND ALSTOM in Spain: * Clients are mainly national or regional railway societies.

* Alstom works a lot for the national market but the company also exports and mainly in Europe (Austria, France, Germany, Italy…), but also so far as China, Tunisia...

* In Spain, there is actually the emergence of the second wave of high speed train.

http://www.far.be/sodia.org/vf/alstom/espagne/ecoesp.htm

* Our company is also proposing in Spain light rail transit, metro systems, suburban and regional trains, locomotives and freight trains. www.alstom.com (2009)
CONCLUSION

* Country: Spain is a target for us because there are many projects, infrastructures are still growing up, and more and more Spanishes travel by train (Business, tourism…)
Indeed, Alstom is already very present on this market.

* Strategy: First, we just want to propose to this country our 2 products: AVG and Pendolino because this country has the will to connect big cities with other big cities (Madrid, Barcelona, Sevilla…), and also the country with Europe and maybe with North Africa.

And finally, we want to give and assure security and punctuality to people, to give an answer of a need of the population (example: to don’t waste time…).

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