April 23, 2013
In 2008 Vestas started to struggle as a company due to the declining economic environment and the changing industry environment. As a company they set a new goal they called the triple 15. (€15billion in revenues 15% EBIT by 2015) They also set up a new marketing and sales strategy to help achieve the triple 15 goal. The core issue for Vestas is the alignment of their new marketing strategy with reaching their goal of the triple 15. Vestas needs to determine the necessary steps to appeal to their target customers and market using these new strategies while staying competitive in the market. This includes identifying the property target customers and creating a more flexible marketing strategy to obtain these customers.
The following is a SWOT analysis for Vestas:
oCompany has a management team with experience in the industry. oMarketing Department able to execute on strategies laid down by upper management. -Culture of Change
oMovement of communication team to marketing team
oNew marketing strategy developed
oAbility to adapt to new policies pushed down.
oLocated where your customers are.
oCurrently ability to build relationships with clients
-High Quality Product
oBanks willing to lend for a product that last longer
oUtilities like the higher quality product
-Democratic/Consultative Management Style
oCorporate able to come up with unique strategies
oLower levels able to adapt/pick and choose correct strategy to work with the clients they know the most about. -Key Performance Indicators
oMeasure KPI within current marketing plan.
oCompanywide understanding of KPI’s for implementation of future plans. -Innovation
oNew wind turbines being products that can produce larger amounts of Megawatts oAbility to manufacture wind turbines for off shore wind farms. -Sale of Service
oSecond Line of Revenue
oAdded Value to Contracts
-Market Changing from Suppler power to buyer power.
oNo understanding of what the buyer is exactly looking for
-Lack of Succession Plan
oNo identified succession plan especially in sales in marketing oHire many external employees to fill holes.
-Lack of Price Flexibility
oDid not adjust prices during recession to grow sales.
oMissing out on segment of sales related to not lower prices -Lack of ability to construct wind farms
oNo strategic alliance for construction
oClients are responsible for installation
oDecrease in Financial Ratios show that Assets and Equity are not being used to full capacity oTimes Interest Earned shows that the company could have trouble covering interest and also obtaining future financing for growth opportunities.
oAs the economy recovers there will be many growth opportunities within the segment. -Utilities
oGovernments starting to require utilities companies to source a percentage of their power on green energy oIncrease demand from segment
oFocus on Utilities and Lobbying
oIncrease pressure from governments will increase purchases through utility companies.
oTurbines can be used as an Investment Opportunity
oWon’t have the investments needed if economy stays down
oDecrease in government subsidies going into green energy.
oIncrease in competition
oLow cost providers from China
oSiemens and GE leveraging other industries to succeed
-Increase in Buyer Power
o80% of revenue comes from 15% of buyers
oCurrent Marketing Strategy irritating some current customers -Move away from Wind power
oMove towards other sources of renewable energy such as solar oDecrease in price of fossil fuels cause decrease in reliance on other energy sources.