Vestas World of Wind Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

Vest as was founded in 1898.It became globally recognized in 1945 as a manufacturer and seller of wind turbines. The company is headquartered at Aarhus, Denmark. The company was the first one to install offshore turbine, which has robustly increased the overall growth of the company(Vestas, n.d).

The company has earned the confidence and satisfaction of its customers by facilitating its customers with excellent quality products as well as exceptional customer care services. This has led the company to earn the loyalty of its customers,which has subsequently allowed the company to trail blaze the entire industry by securing the leading position in the entire market.

The top management of the company has made its back breaking efforts in order to ensure the quality of their products and services delivered to their customers. In addition to this, the company has focused on global expansion of the operations of the company and has expanded its operations across 30 countries and owns more than 22000 employees(Vestas, 2014).

ISSUE ANALYSIS

During the global recession of 2008, the fossil fuel prices decreased, which also caused a decrease in the prices of electricity generated through oil and gas.This has subsequently decreased the overall demand of the products and services of the company.

In addition to this, many new entrants including gigantic multinationals such as Siemens and GE have tapped into the market of windmill, which has increased the overall competition in the entire industry(Tavner, 2012).

The top management of the company focused less on the marketing of the products and services of the company, has decreased the overall ability of the company to compete strongly in the entire market. The top management of the company has recently established a global marketing department in order to compete strongly in the entire market however itis unable to formulate effective strategies which could increase the overall competitiveness of the company and could allow the top management of the company to achieve its annual target of 15 billion euros in revenues.

In addition to this, the top management of the company is also unable to formulate effective strategies which could help the top management of the company in identifying potential markets all across the world as well as this enables the company to tap into such markets efficiently and effectively.

PRODUCTS

The company has the following products and services lines.

Supply of wind Turbines.
Supply and installation of wind turbines.
Services and Turnkey solutions.

The services provided by the company are further divided into two types:

Initial services: These services include only initial installation services in which the company also guarantees the useful time of the equipment for a certain period of time.

Long term services: These services include installation services as well as the timely maintenance services in which the top management of the company guarantees the production capacity of the product provided by the company.

In addition to this, the top management of the company exclusively emphasizes on the quality of the products of the company, which also attracts the customers towards the company and hence increases the overall competitiveness of the company. Since the company focuses on the quality of the products of the company, therefore, the company has less focus on the price of the products of the company. Thus, the company offers excellent quality products at comparatively high prices.

Furthermore, the top management of the company has made a survey, which shows that the demand for service contracts has been increased robustly over the period of time. In addition to this, the top management of the company is putting more focus on its services contracts rather than its product line in order to cater the rising demands efficiently and effectively.Vestas World of Wind Case Solution

CUSTOMERS

The top management of the company has mainly targeted following three classes of customers segments

Developers.
Independent Power Producers (IPP).
Utilities

According to the survey made by the management of the company, it is evident that less than 15% of the customers generate 80% of the revenues of the company. Moreover, IPPs and utilities generate approximately 46% of the total revenues of the company. Moreover, developers need a massive loan financing in order to procure the products of the company as well as in order to develop site for their operations. In addition to this, IPPs focus on wind farms as well as they also produces energy, whereas, utilities are slowly entering the entire market.Also, they are pushed by the Government in order to enter the market..........

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