Founded in 1981, Wind Technologies (WT) has been a supplier of many different varieties of weather related radar and instrumentation. In 1986 the company focused its production on wind profiling radar systems that measure wind and atmospheric conditions. Management of Wind Technologies felt as though this consolidation would position the company as an industry leader in the future in a market that would have little competition. This consolidation was mainly due to being purchased by Vaitra, a high technology European firm. Vaitra made it possible for Wind Technologies to focus its operations mainly due to its large financial support. Since commercial sales were less than stellar since the buyout Vaitra’s financial support has diminished. These products were successful with groups such as NASA, public sector bodies, & universities accounting for nearly 90% of Wind technologies business. Responsibilities for these sales were placed on top management and a team of engineers and this sales team accounted for $105,000 of its annual salaries were charged to a direct selling expense. Wind Technologies customized its products to each individual customer to fit its needs. Costs for its products could range anywhere from $400,000 to $5 million dollars. During 1991 however, manager Kevin Cage realized that his lack of sales was due to a vastly changing market and a far less need for Wind Technologies weather radar products. WT realized that it only had from 9-12 months to implement a new strategy. To compensate for the lack of sales Wind Technologies decided to spin off the component parts used in the wind profiles into high voltage power supplies (HVPS).
Situation Analysis and Problem Identification
The main problem that Wind Technology (WT) faces is trying to develop a product to combat recent sales until radar markets were revived without financial support from its owners. WT HVPS systems can fall into anyone of three power use segments each having its own advantages and disadvantages for WT. Growth has always been very limited due to the industry that WT is in. While survival rather than growth is the main concern for WT, the lack of product diversification has left WT to rely on its HVPS systems to save the company. If something did not change drastically WT would no longer be able to stay in business and is currently having trouble meeting payroll and budget demands. With the development of HVPS systems WT is able to develop itself in a new market while still being able to use the component parts from its radar systems and continue to produce its products in house. Competitive rivalry is also a large problem for WT since both the industry for radar and HVPS systems are very technical and competitors are always looking to steal lucrative technologies and market them as their own. At this time, WT marketing for HVPS systems is done in house as well. This has allowed WT to research a few solid potential target markets to enter. This also means that in conjunction with its in house manufacturing, all information about its product is secret and it can produce a superior product for its target market with little fear. While there may be a high number of competitors each one owns only a small portion of the market share, with the largest being only 3%. This means that by offering a superior product at a lower cost WT can grab a large portion of the market share from its competitors. Development of an established and well working marketing department is also a big problem for WT. The main barrier to entry that WT is facing is getting market exposure of its HVPS systems. A variety of marketing efforts and media can be used with IMC marketing to reach WT target market, but deciding on which media to use and how much that media will cost is a major concern. Anne Ladwig, an existing employee given the task of market research, estimated that collateral material, public...