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
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Activity analysis of cost and
willingness to pay
COMPETITIVE ADVANTAGE
SPREADSHEET
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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
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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
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-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)
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-End To End Solution
Suzlon
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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Better control over time, cost and
quality Long-term service support to
customers
Turbine technology integration Faster product roll-out
Competitive advantage for Suzlon
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Resource and capabilities
TABLES
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THANK YOU
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