Suzron Energy Case Study
Marketing Assignment
Suzlon Energy –Making Foray Abroad
By :- Niketan Kumar (G14030 GMP A Section)
Marketing Assignment
Q1.How do you analyse the attractiveness of industry?
A1.The wind industry is a very attractive industry. Though wind produces just over 1% of world-wide electricity use,an estimated 72 TW of wind energy is available on the …show more content…
* Still quite a new industry, so everything needs to start from scratch as there is no point of reference. * Still can’t compare to markets as that of thermal and hydro electricity industry.
OPPORTUNITIES * The Global Wind Energy Council has forecasted that the global wind market is expected to grow by 155 percent reaching 240 GW by 2012.
* Pressure from national governments to place an obligation on energy producers to focus on renewable source of energy.
* With the price of oil well over US $100 per barrel, and the price of coal and gas at historically high levels, Wind Energy has lot in store for the globe.
THREATS * Wind energy industry is comparatively new industry and so there are not many players in supply side that can provide turbines and blades. Thus directly leading to high cost.
* There are other sources of renewable energy vying for the place for example nuclear energy, solar energy.
Hence, we come to the conclusion that wind energy is a relatively attractive industry with more positives than threats and weaknesses. Also with the changing regulations and increased focus on a promising future for the power sector as a …show more content…
Vertical Integration and Competitive Advantage
Suzlon had anticipated that there would be synergies between these acquisitions which would ultimately bring down the costs. It was a wind farm operator along with being an operator and equipment supplier.It had varied services to cover specific regional markets and was looking to grow overseas.
Owing to its aggressive expansion strategy, Suzlon is now a fully vertically integrated energy equipment provider, a position only a few global providers such as Spain’s Gamesa, a leading wind turbine maker, has managed to achieve. Suzlon has achieved a greater level of vertical integration than its peers such as Vestas and Gamesa. This is reflected in its superior operating profit margin of 25 per cent against 13 per cent for Gamesa. The Company also expects the cost‐efficiencies attained through the vertical integration to offset any margin dent caused by a hike in the prices of steel,which constitutes 70 per cent of the cost of towers. Suzlon’s network of strategically positioned global subsidiaries contributes to its base of industry knowledge and technical capacity. With its vertical integration and a revised product portfolio, it can offer customized end to end solutions in Wind Energy. Due to a greater control over supply
Suzlon Energy –Making Foray Abroad
By :- Niketan Kumar (G14030 GMP A Section)
Marketing Assignment
Q1.How do you analyse the attractiveness of industry?
A1.The wind industry is a very attractive industry. Though wind produces just over 1% of world-wide electricity use,an estimated 72 TW of wind energy is available on the …show more content…
* Still quite a new industry, so everything needs to start from scratch as there is no point of reference. * Still can’t compare to markets as that of thermal and hydro electricity industry.
OPPORTUNITIES * The Global Wind Energy Council has forecasted that the global wind market is expected to grow by 155 percent reaching 240 GW by 2012.
* Pressure from national governments to place an obligation on energy producers to focus on renewable source of energy.
* With the price of oil well over US $100 per barrel, and the price of coal and gas at historically high levels, Wind Energy has lot in store for the globe.
THREATS * Wind energy industry is comparatively new industry and so there are not many players in supply side that can provide turbines and blades. Thus directly leading to high cost.
* There are other sources of renewable energy vying for the place for example nuclear energy, solar energy.
Hence, we come to the conclusion that wind energy is a relatively attractive industry with more positives than threats and weaknesses. Also with the changing regulations and increased focus on a promising future for the power sector as a …show more content…
Vertical Integration and Competitive Advantage
Suzlon had anticipated that there would be synergies between these acquisitions which would ultimately bring down the costs. It was a wind farm operator along with being an operator and equipment supplier.It had varied services to cover specific regional markets and was looking to grow overseas.
Owing to its aggressive expansion strategy, Suzlon is now a fully vertically integrated energy equipment provider, a position only a few global providers such as Spain’s Gamesa, a leading wind turbine maker, has managed to achieve. Suzlon has achieved a greater level of vertical integration than its peers such as Vestas and Gamesa. This is reflected in its superior operating profit margin of 25 per cent against 13 per cent for Gamesa. The Company also expects the cost‐efficiencies attained through the vertical integration to offset any margin dent caused by a hike in the prices of steel,which constitutes 70 per cent of the cost of towers. Suzlon’s network of strategically positioned global subsidiaries contributes to its base of industry knowledge and technical capacity. With its vertical integration and a revised product portfolio, it can offer customized end to end solutions in Wind Energy. Due to a greater control over supply