Vestas Expansion Into Small Wind Turbine Industry

Executive Summary With Vestas feeling the heat from the recent financial crisis, in concert with the effects from the increasingly competitive industry, the company had reached a incarnate strategical crossroad, whereby in order to anchor Vestas global leading position, new expansion opportunities and alternate revenue streams would have to be adopted to mitigate and spread risks brought about from such hazardous outdoor(a) crisises. As a result, based on an external and internal analysis of the corporate situation conducted, three afflicting strategic issues for Vestas were identified: 1) Slow ripening in existing overriding markets and increased competition in growing markets for Large outstrip Wind Turbines (LWT). 2) Overdependence on government incentivised markets. 3) Opportunity in the splendid Scale Wind Turbine (SWT) Industry. Hence, it is proposed in this report that Vestas adopt a corporate diversification strategy, whereby an expansion into the SWT industry will act as as a strategic move to circumvent the bother of slowing growth and increasing competition in the LWT segment, as well as retain global market leading in the overall wind turbine industry.

Vestas can do so by undertaking a cost leadership approaching in three phases by firstly tar weeing the United States of the States (USA) market to capitalize on its valuable resouces and capabilities, establishing learning curves and economies of scale. whole after having gleaned technological expertise and cost advantages should Vestas move forrader to the second phase to capture the China market and later on other potential markets in the third phase of the strategic approach. With this proposed strategy, Vestas will be able to exploit the budding opportunity in the emerging SWT industry to build sustainable growth based on cost advantages, ultimately eliminating dependence on government incentives in the long run. 1.0 Introduction Vestas Wind Systems A/S (Vestas) is a pioneer in the... If you want to get a full essay, order it on our website: Orderessay

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