Company Overview: SITUATION▪ Xinjiang Goldwind Science and Technology Inc.

▪ Target of selling 30% of its turbines overseas by 2012

▪ Chairman Wu: Globalization is about more than sales

▪ “It could enhance Goldwind’s human capital and corporate culture, giving a company of its size the international pedigree it deserved”

▪ Goldwind USA

▪ Sold 18 turbines to small projects across 8 states in the U.S.

▪ 2 years of experience in United States (Founded Goldwind USA in spring 2010)

Company Overview:COMPLICATIONS▪ General▪ GE▪ Industry Growth Rate Decline▪ Operational Experience

▪ Technical Difficulties▪ Grid Parity

▪ Political▪ Government Subsidies▪ Tariffs

Company Overview:ENABLERS▪ General

▪ Parent Company▪ World Market Share▪ Experienced Team▪ US Sourcing

▪ Technical▪ R&D Centers▪ PMDD Technology▪ Experience Curve

▪ Political▪ Job Creation

▪ Financial▪ Strong Cash Position

Company Overview:CORE QUESTION

How can Goldwind USA capture a bigger portion of the wind turbine

market in the United States?

1. PESTLE MODEL

2. PORTER’S FIVE FORCES

PEST MODELEXTERNAL ANALYSIS

POLITICAL

1. Reduced Government Subsidies:▪ The U.S. government ▪ The Chinese government

2. Increased tariffs:▪ Lobbying from U.S. Wind Tower Trade

Coalition (WTTC)

3. Clean energy adoption by 2035PEST Model

ECONOMIC

Economic recovery:▪ Goldwind’s Timeline▪ Clean Energy Adoption

PEST Model

SOCIAL

▪ Perception of Chinese Goods:▪ China Quality

▪ Job creation after the recession of 2008:▪ Creating jobs in the U.S. was the

message that Goldwind USA tries to convey as a Chinese newcomer to the American market.

▪ Going Green▪Wind power is Renewable Energy

PEST Model

TECHNOLOGICAL

▪Mainstream technology—geared wind turbine

▪ Goldwind— first mover advantage with PMDD Technology

PEST Model

PORTER’S FIVE FORCESEXTERNAL ANALYSIS

Suppliers

New Entrants

Rivalry Buyers

Substitutes

POWER OF SUPPLIERS : LOW-MEDIUM

▪ Recession = Low Supplier Prices

▪ Raw Material Prices

▪ Vertical Integration Threat

▪ Switching Costs: Trust

POWER OF BUYERS: HIGH

▪ Diverse Customer Segments▪ Utility Companies: Oligopolies▪ Institutions▪ Banks

▪ Clean Energy▪ Unfavorable Gross Profit

THREAT OF NEW ENTRANTS: MEDIUM-HIGH

▪ Barriers to entry

THREAT OF SUBSTITUTES: HIGHIndustrial Structure- Diverse

▪ Fossil fuels▪ Solar▪ Hydroelectric▪ Biomass▪ Nuclear

RIVALRY- HIGH

WORLD US

COMPLEMENTS

▪ Wind Farms

RESOURCES, CAPABILITIES AND COMPETENCIES

RESOURCES AND CAPABILITIES

RESOURCES

▪ Strong financial position

▪ Small and nimble team

CAPABILITIES

▪ Commitment to research and development efforts

▪ Manufacturing

▪ Innovative- capacity to enter new product segments

▪ Turbines can work in harsher weather conditions

▪ Currently developing blades much larger than industry average

VRIN CORE COMPETENCIES

V R I N

▪PMDD technologyX X X X

▪Neodymium for its permanent magnetsX X

▪US suppliers network and strategyX X X

1. STRATEGY DIAMOND

2. SEVEN S FRAMEWORK

RECOMMENDATIONS

1. Project Initiation

2. Customer value

3. Branding

#1 PROJECT INITIATION▪ Focus on larger wind farms in a few places▪ California▪ Texas▪ Iowa▪ Illinois

#2 CUSTOMER VALUE

▪ Wind farm financing, development and management services▪ Project customization ▪ Product Innovation

#3: BRANDING

▪ Novel advertising campaigns▪ Human elements v machinery▪ Quality & Integrity▪ Continue partnering with established companies

IMPLEMENTATION▪ Strategy- Increase US market share through initiating projects, enhancing customer value

and branding

▪ Structure- Utilize matrix structure to benefit project implementation growth and customization.

▪ Systems- Customer satisfaction, CRM, product quality & efficiency, environmental impact

▪ Style- Leadership style that promotes honesty and integrity, innovation, motivation and productivity, close team relationships among employees

▪ Skill- Innovative and technological competencies

▪ Staff- Maintain current high standards of recruiting top talent, recruit marketing experts, strong project managers

▪ Shared Values- Commitment to clean renewable energy in lieu of climate change, steadfast commitment to innovation

THANK YOU

GLOBALIZATION▪ Globalization strategy: Adapt operations in USA to maximize effectiveness

▪ CAGE Distance Framework:▪ Cultural: different languages, ethnicities, and values; lack of connective ethnic or social networks▪ Administrative: differences in political and governmental systems in terms of the wind industry▪ Geographic: physical distance between China and the U.S.; no common land border, differences in climates, time-zones, and

geographic size and population▪ Economic: differences in consumer incomes and economic size, availability of human, financial, and natural resources,

infrastructure, distribution networks, and organizational capabilities▪ What should Goldwind do now?

▪ Continue to adapt

▪ Emphasize economic arbitrage: ▪ Leverage differences in labor and capital costs, and costs of knowledge inputs

▪ R&D locations are in Germany and China

▪ Leverage resources available in the United States

▪ Higher incomes in U.S. = selling wind solutions at higher prices will not impact consumer interests as much as in China

▪ U.S own supplier network instead of aggregating or adapting China’s supplier network

▪ Emphasize geographic arbitrage:▪ Leverage differences in climates to enhance performance of wind solutions

▪ Goldwind has exceptional wind capacity wind capabilities with thousands MW under its belt from Chinese operations

▪ Locally sourcing wind product components within the United States

By sticking to our expertise we can establish a better brand image and thus expand to larger wind projects in the United States.

LOCATION

GROWTH