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Presented by- : Manas Kumar  Saurav Kumar Saurabh Singh
SUSTAINABLE COMPETITIVE ADVANTAGE <ul><li>Sustainability is a  framework for responding to the emerging competitive threat...
CREATE COMPETITIVE ADVANTAGE <ul><li>Cheaper (lower cost) producer: ? </li></ul><ul><li>Better (superior perceived quality...
RECOGNISING PATTERNS <ul><li>Advantage comes from understanding and exploiting the emerging competitive market patterns. T...
Porter’s approach to CA  <ul><li>Low cost/ differentiation may indeed be the proximate cause of CA but they cannot be the ...
Conditions for  sustaining a competitive advantage <ul><li>A difference that matters </li></ul><ul><li>A gap in capabiliti...
SWOT ANALYSIS OF SUZLON(THREATS) <ul><li>Intense competition </li></ul><ul><li>Over dependence on US </li></ul><ul><li>For...
SWOT ANALYSIS OF SUZLON <ul><li>STRENGTH(Company Values) </li></ul><ul><li>People strength </li></ul><ul><li>Aggressive Ve...
SWOT ANALYSIS OF SUZLON(STRENGTH) <ul><li>Cost Reduction </li></ul><ul><li>Reverse Outsourcing </li></ul><ul><li>End to En...
SWOT ANALYSIS OF SUZLON(WEAKNESS) <ul><li>Management Structure </li></ul><ul><li>Capital Intensive </li></ul><ul><li>Overs...
SWOT ANALYSIS OF SUZLON(OPPURTUNITIES) <ul><li>Environmental and Governmental Initiatives </li></ul><ul><li>Favorable tax ...
SWOT ANALYSIS OF SUZLON(THREATS) <ul><li>Intense competition </li></ul><ul><li>Over dependence on US </li></ul><ul><li>For...
Company overview
Company overview
Timeline & Select Milestones
Suzlon group – global presence
Acquisition of Hansen Transmission
Drivers for growth <ul><li>Three key drivers to go beyond India: </li></ul><ul><li>1. Access to technology </li></ul><ul><...
<ul><li>2. Access to people </li></ul><ul><li>Experienced professionals in e.g. international sales, project management, s...
Edge over competitors
Proactively addressing challenges at their root <ul><li>Blade cracks </li></ul><ul><li>Retrofit exercise under way after s...
Working capital management <ul><li>Working capital buildup </li></ul><ul><li>Working capital reduction plan designed in as...
Sustaining competetive advantage
 
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Sustainable Competetive Strategy

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strategies for sustaining competitive strategies, and how suzlon applied to sustain its competitive advantage

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Transcript of "Sustainable Competetive Strategy"

  1. 1. Presented by- : Manas Kumar Saurav Kumar Saurabh Singh
  2. 2. SUSTAINABLE COMPETITIVE ADVANTAGE <ul><li>Sustainability is a framework for responding to the emerging competitive threats and maintaining competitive advantage. </li></ul><ul><li>Sustaining competitive advantage requires erecting barriers against the competition. </li></ul><ul><li>A competitive strategy consists of moves to </li></ul><ul><ul><ul><li>Attract customers </li></ul></ul></ul><ul><ul><ul><li>Withstand competitive pressures </li></ul></ul></ul><ul><ul><ul><li>Strengthen an organization’s market position </li></ul></ul></ul>
  3. 3. CREATE COMPETITIVE ADVANTAGE <ul><li>Cheaper (lower cost) producer: ? </li></ul><ul><li>Better (superior perceived quality): ? </li></ul><ul><li>Newer (more innovative/up to date/fashionable): ? </li></ul><ul><li>Faster (speed to market): ? </li></ul><ul><li>More desirable/ distinctive (successful branding):? </li></ul><ul><li>Better reputation: ? </li></ul><ul><li>First mover advantages: ? </li></ul><ul><li>Provide your own examples of firms that compete successfully on this basis. </li></ul>
  4. 4. RECOGNISING PATTERNS <ul><li>Advantage comes from understanding and exploiting the emerging competitive market patterns. There is scope for advantage based on: </li></ul><ul><li>Search/ scanning capabilities </li></ul><ul><li>Analysis/ interpretation capabilities </li></ul><ul><li>Risk taking capabilities </li></ul><ul><li>Implementation capabilities </li></ul><ul><li>Change management capabilities </li></ul><ul><li>Ownership of/ access to required complementary assets/ capabilities </li></ul><ul><li>The ability to do this depends in turn on the effectiveness and integration of the appropriate key business activities and processes (distinctive capabilities/ competencies) which underlie cost competitiveness, quality, innovation, speed to market, network building, and customer intimacy. </li></ul><ul><li>Production, marketing, logistics, supply chain management, collaboration, branding, quality, market development, product development, and innovation. </li></ul><ul><li>Which in turn depends on organisational processes and practices such as HRM, information and decision management, and relationship management. </li></ul>
  5. 5. Porter’s approach to CA <ul><li>Low cost/ differentiation may indeed be the proximate cause of CA but they cannot be the ultimate source. </li></ul><ul><li>Low cost positions, superior quality, speed to market, or whatever, must come from something or other the organisation has or does. </li></ul><ul><li>For example in Ricardo’s time the superior returns (CA) of some farmers indeed came from lower costs which derived ultimately from superior quality (ie more productive) land, a resource that was very hard to make more of! </li></ul><ul><li>Nowadays Nokia’s or Dell’s superior returns come ultimately from something similar, something (scarce and hard to make more of) which allows them to do things which enable them to offer a better ‘value for money’ proposition to consumers. But what things exactly? </li></ul>manecon/options/create
  6. 6. Conditions for sustaining a competitive advantage <ul><li>A difference that matters </li></ul><ul><li>A gap in capabilities </li></ul><ul><ul><ul><ul><li>Gap in business system </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gap in position </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Regulatory and legal gaps </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gap in R&D and implementation </li></ul></ul></ul></ul><ul><li>Sustainable differentiation </li></ul>
  7. 7. SWOT ANALYSIS OF SUZLON(THREATS) <ul><li>Intense competition </li></ul><ul><li>Over dependence on US </li></ul><ul><li>Foreign Exchange Risk </li></ul><ul><li>Technology Risk </li></ul><ul><li>Decreasing price of crude oil </li></ul>
  8. 8. SWOT ANALYSIS OF SUZLON <ul><li>STRENGTH(Company Values) </li></ul><ul><li>People strength </li></ul><ul><li>Aggressive Vertical Integration Strategy </li></ul><ul><li>Strong R&D team </li></ul><ul><li>Expanding Manufacturing Capabilities </li></ul><ul><li>Strong Order Book </li></ul><ul><li>Aggressive Growth </li></ul>
  9. 9. SWOT ANALYSIS OF SUZLON(STRENGTH) <ul><li>Cost Reduction </li></ul><ul><li>Reverse Outsourcing </li></ul><ul><li>End to End Solution </li></ul><ul><li>Vertical Integration and Amalgamation </li></ul><ul><li>Market Leadership in India and Global Presence </li></ul><ul><li>Growth </li></ul><ul><li>Integrated Business model </li></ul>
  10. 10. SWOT ANALYSIS OF SUZLON(WEAKNESS) <ul><li>Management Structure </li></ul><ul><li>Capital Intensive </li></ul><ul><li>Overseas Business </li></ul><ul><li>Cash Conversion </li></ul><ul><li>Growth in asset overweighting growth in revenue </li></ul>
  11. 11. SWOT ANALYSIS OF SUZLON(OPPURTUNITIES) <ul><li>Environmental and Governmental Initiatives </li></ul><ul><li>Favorable tax exemptions </li></ul><ul><li>Untapped offshore market </li></ul><ul><li>Steady source of demand </li></ul>
  12. 12. SWOT ANALYSIS OF SUZLON(THREATS) <ul><li>Intense competition </li></ul><ul><li>Over dependence on US </li></ul><ul><li>Foreign Exchange Risk </li></ul><ul><li>Technology Risk </li></ul><ul><li>Decreasing price of crude oil </li></ul>
  13. 13. Company overview
  14. 14. Company overview
  15. 15. Timeline & Select Milestones
  16. 16. Suzlon group – global presence
  17. 17. Acquisition of Hansen Transmission
  18. 18. Drivers for growth <ul><li>Three key drivers to go beyond India: </li></ul><ul><li>1. Access to technology </li></ul><ul><li>Technical collaboration with Südwind (1995)  internalizing R&D by 1997/8 </li></ul><ul><li>Formation of AE Rotors in the Netherland• Netherlands </li></ul><ul><li>Product and process engineering in India </li></ul><ul><li>Alliances: e.g. joint venture with Elin Generators </li></ul><ul><li>Maiden venture into the US market (2002/3) </li></ul><ul><li>European technology platform </li></ul><ul><li>Experienced European wind energy professionals (engineers, researchers, </li></ul><ul><li>technicians) as the core to drive Suzlon’s R&D </li></ul><ul><li>Compete in India </li></ul>
  19. 19. <ul><li>2. Access to people </li></ul><ul><li>Experienced professionals in e.g. international sales, project management, service </li></ul><ul><li>management etc. with existing and tested relationships comprising the core team </li></ul><ul><li>Follow the demand – North America, Europe, Australia, China etc. </li></ul><ul><li>Creation of Business Units (local organisations, local manufacturing etc.) </li></ul><ul><li>Follow shift in customer trends (consolidating and becoming bigger more complex </li></ul><ul><li>higher demands for technology, services, Industrial plans etc. </li></ul><ul><li>3. Access to new markets/customers </li></ul><ul><li>Acquisitions: Repower / Hansen Transmissions </li></ul><ul><li>enter new markets and access new customers </li></ul><ul><li>build up experienced and international (but localized) managerial/specialist base </li></ul><ul><li>local manufacturing to lower transportation costs </li></ul><ul><li>expand product portfolio </li></ul><ul><li>access state-of-the-art technology </li></ul>
  20. 20. Edge over competitors
  21. 21. Proactively addressing challenges at their root <ul><li>Blade cracks </li></ul><ul><li>Retrofit exercise under way after satisfactory conclusion of RCA and solution </li></ul><ul><li>Order book slowdown </li></ul><ul><li>S88 V3, with demonstrable performance, positioned as mainstay for internationalmarket </li></ul><ul><li>Strong pipeline of potential customers </li></ul><ul><li>Cost competitiveness, vertical integration and expanded scope of services toprovide edge in tough market conditions </li></ul><ul><li>Global credit crisis </li></ul><ul><li>Well-diversified market reach hedges geographical risk </li></ul><ul><li>Focusing on key markets and customer relationships </li></ul><ul><li>Current customer profile dominated by utilities and financially sound developers </li></ul>
  22. 22. Working capital management <ul><li>Working capital buildup </li></ul><ul><li>Working capital reduction plan designed in association with AT Kearney </li></ul><ul><li>Receivables </li></ul><ul><li>Program management for order fulfillment </li></ul><ul><li>Improvement in production planning process </li></ul><ul><li>Improvement in documentation and certification process </li></ul><ul><li>Inventories </li></ul><ul><li>Procurement reduction </li></ul><ul><li>Non- and slow-moving inventory reduction </li></ul><ul><li>Redistribution of excess between units </li></ul><ul><li>Mismatch and excess inventory reduction </li></ul>
  23. 23. Sustaining competetive advantage
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