Competitive Advantage and Functional Level Strategies

8/8/2019 Competitive Advantage and Functional Level Strategies

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Competitive advantageFunctional level strategies

Presentation by:

Saurabh 097, Pallabi 123, Samiksha 133, Abhishek 118,

Indunivaloni 098, Deepak 083, Animesh 071



Activity analysis of cost and

willingness to pay

COMPETITIVE ADVANTAGE

SPREADSHEET



Functional level Strategies

Improves effectiveness by helping an organization to

achieve :

Efficiency

Quality Innovation

Customer Responsiveness

They are responsible for building the resources and

capabilities

that lead to distinctive competencies, allowing a firm topursue differentiation or low cost strategy



Efficiency

SUZLON Key Strategies:

Skill amalgamation

± Cost Reduction

± Reverse Outsourcing

End to end solution

Vertical integration and acquisition

Integrated manufacturing capabilities

HR ± Talent management, learning and

development, performance management,workforce planning, internal communication



-Skill amalgamation

Suzlon ± Best possible skill and resources

± Inventory reduction through better planning

± Aggressive inventory reduction to minimize net

operating working capital

± Value engineering

± R & D in Europe

± Manufacturing mostly in India and China

± Lower capital cost per unit power generation

% SUZLON VESTAS ENERCON

Employee

cost/sales

3 20 9

Other manf. &

selling exp/ sales

74 78 92

EBIT margins 23 2 (1)



-End To End Solution

Suzlon



Vertical Integration

Acquisition of Hansen manufacture gear box for wind turbinesreducing lead time

Capacity Expansion enhancing gearbox capacity : 3500 MW in

India

Fewer parties involved in the chain reduce cost (logistics and

transaction)

Strong access to local networks



Cost effective way of shipping

Combining projects: 1 project = more than 1

order

Benefits to customer by reducingtransportation cost per MW up to 12%

Consolidating air and truck transport

VESTAS



Suzlon

Continual monitoring through key performance indicators

The Leadership in Energy and Environment Design

(LEED)

The Green Building Movement, are enabling 20-30%

reduction in energy consumption

The wind turbine concept is based on Robust design

with pitch-regulated blade operation

The technology incorporates Hydrodynamic Fluid

Coupling, Precise Micro-Pitching and the flexi-slipMechanism for maximizing performance. With a

proven and reliable of technology, Suzlon assures 95%

uptime on its wind turbine generators.

Q uality



Blades

Fully integrated design with state of the art Resin Infusion Molding (RIM)

Specific quality features of Suzlon include:

Low-energy materials - More than 70 percent of materials used in the interiors

have a reduced carbon footprint. They ensure higher recycled content, have lower

embodied energy and are rapidly renewable.

Renewable energy-based exterior lighting - LED street lighting is powered

entirely by renewable energy-based systems located on the site thus reducingapproximately 25 percent of the total lighting load. Ninety percent of regularly

occupied spaces have daylight exposure, thereby saving on artificial lighting.

Daylight & occupancy sensors - Daylight sensors are used in the workstation area

for maximum use of artificial lighting. Occupancy sensors control task lighting in

unoccupied workstations ensuring savings of about 20 percent of energy costs.

Efficient ventilation system - Jet fans installed in the basements intermittently

push out stale air & bring in fresh air, saving 50 percent energy as compared toducted basement ventilation system.

Storm & rainwater management system - Channels all rain received into a

controlled flow, preventing soil erosion and facilitating removal of silt.



Innovation is the most important for achieving

Competitive Advantage and major driver Superior

Profitability

Failure rate of innovation is high, Investment in R&Dis High-Risk, High-Return Strategy

Reasons for failure:

± Uncertainty about the future

± Poor Commercialization

± Poor Positioning

± Technological Myopia

± Slow time to Market

Innovation



Building Skills

± Good Working Environment

± Good Research Facilities

Project Management

Tight Cross-Functional integration between R&D,

Production and Marketing

Cross-Functional integration of Product Development

Teams

± Partly Parallel Process

Building Competencies In Innovation



Suzlon has setup a wind turbine innovation centre in

Denmark

State-of -the-art facilities in Belgium, Germany, India

Suzlon distinguishes between technology and

innovation

It specializes on developing ideas and Technologies

for future wind turbines including the use of

Innovative materials

Focus on the design of the turbines

Suzlons Innovations



Blade Technology:

± Advanced Project Management, with a clear

focus on voice-of the-customer

± Newly developed blades: WMC is a result of

Quantum Innovation

Brake Systems:

± Aerodynamic Braking is a result of Incremental

Innovation

Rotor Blade Concept Achieving Product Portfolio through

innovation

Cont



Suzlon had found the cracks on 34 bladespertaining to 34 wind turbines. At that time, Suzlonhad announced a provision of Rs. 190 million forreplacement of those 34 blades as a sign of commitment to our customers and uninterruptedoperation of their projects

Suzlon is keeping its customers informed about thesteps taken to ensure trouble-free operation of allturbines.

Transparency with the customers which help themdrive enhanced customer satisfaction.

Each turbine is monitored 24 X 7 by trainedengineers at all wind farms. The contract covers

spares, consumables, and major componentswithout any hidden costs and also guarantees 95%machine availability. Daily generation reports on allturbines are sent to the customer every day via e-

mail.

Customer Responsiveness



Better control over time, cost and

quality Long-term service support to

customers

Turbine technology integration Faster product roll-out

Competitive advantage for Suzlon



Resource and capabilities

TABLES



THANK YOU

Competitive Advantage and Functional Level Strategies

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