"No. 1 in Modern Energy" posters abound in magazines and subway walls. But what is the purpose of this general brand management? General consumers unlikely purchase wind turbines. Is this a general strategy of boosting stock prices!? Vestas' stock has plunged amid plunging oil prices and you may ask if "No. 1" garners much trust in these markets. Is there long term benefit in defining Vestas to the general public?
Vestas has created a huge global production network since introducing its first wind turbine in 1979 and is hell bent on dominating the world's wind resources (their 2005-2008 plan is called "The Will to Win"). With marketshare around 25% (http://www.bloomberg.com/apps/news?pid=20601089&sid=a6x.LjxlExh0&refer=china), Vestas wind may be everywhere you want to be (especially in beautiful Denmark and glistening shores worldwide) but will they be for long with oil prices like these?
When oil prices peaked around $147/barrel in July this year, alternative energy couldn't be hotter, but now with prices around $60/barrel, fear sweeping the land. In the short term, of course, things will be rocky, but oil in the long term is a limited supply, whether or not we have already reached "peak oil". (http://www.economist.com/finance/displaystory.cfm?story_id=11453090)
In the longer term, Vestas is well positioned for growth, but it must successfully break into the Chinese market, which has doubled in just the last year and may be the largest wind market in the world within 3-5 years.
However, in the short term, credit markets have dried up particularly for alternative energy producers and big companies in the field have a stronger position to wait out the draught (http://online.wsj.com/article/SB122446199550848849.html?mod=googlenews_wsj).
Vestas has created a huge global production network since introducing its first wind turbine in 1979 and is hell bent on dominating the world's wind resources (their 2005-2008 plan is called "The Will to Win"). With marketshare around 25% (http://www.bloomberg.com/apps/news?pid=20601089&sid=a6x.LjxlExh0&refer=china), Vestas wind may be everywhere you want to be (especially in beautiful Denmark and glistening shores worldwide) but will they be for long with oil prices like these?
When oil prices peaked around $147/barrel in July this year, alternative energy couldn't be hotter, but now with prices around $60/barrel, fear sweeping the land. In the short term, of course, things will be rocky, but oil in the long term is a limited supply, whether or not we have already reached "peak oil". (http://www.economist.com/finance/displaystory.cfm?story_id=11453090)
In the longer term, Vestas is well positioned for growth, but it must successfully break into the Chinese market, which has doubled in just the last year and may be the largest wind market in the world within 3-5 years.
However, in the short term, credit markets have dried up particularly for alternative energy producers and big companies in the field have a stronger position to wait out the draught (http://online.wsj.com/article/SB122446199550848849.html?mod=googlenews_wsj).
So if Vestas is trying to change public perception of Wind to turn it into a modern phenomenon, would there be an improved business strategy to actually put the hands of energy purchasing in the hands of consumers?
Would it be possible to construct a business model to put the agency of choosing energy providers in the hands of consumers?
What changes would need to happen in utility market?
Would it be possible to construct a business model to put the agency of choosing energy providers in the hands of consumers?
What changes would need to happen in utility market?
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