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It is also likely to increase from GDE's main rival, Societe Lyonnaise des Eaux, as it will be under similar pressure to retain market share. Increased rivalry might be expected in a mature market. Both companies have strong core traditions in the industry and have not yet built up sufficient alternative markets to dispense with the core business . There could be pressure to reduce prices which could have consequences for profit margins already low despite efficient and effective operations. g.
GDE has been granted the concessionaire for the running of the water supply plant in Rennes. The plants are owned by the local authorities and management contracts usually run for 10-15 years. This can be longer or shorter and is decided by the local 24 Modern developments in business strategy authorities whether a concessionaire is granted. Renewal of equipment in plants is the responsibility of the private company, and until now a high standard of water has been achieved to meet EU regulation under the GDE umbrella.
It should be remembered that wherever possible stakeholders should not be alienated as any repositioning could make them powerful enemies or strategy blockers in the future. All new strategies as part of any planning process require control to monitor whether they are on target and schedule. Effective business strategy requires regular monitoring. Since it is largely an iterative process all organisations should constantly review the situation to keep the enterprise in 22 Modern developments in business strategy tune with the changing environment which can render a strategy which is effective one day obsolete and ineffective the next.