Presented by-:
Manas Kumar
Saurav Kumar
Saurabh Singh
SUSTAINABLE COMPETITIVE
ADVANTAGE
Sustainability is a framework for
responding to the emerging competitive
threats and maintaining competitive
advantage.
Sustaining competitive advantage requires
erecting barriers against the competition.
A competitive strategy consists of moves to
1) Attract customers
2) Withstand competitive pressures
3) Strengthen an organization’s market position
CREATE COMPETITIVE
ADVANTAGE
Cheaper (lower cost) producer: ?
Better (superior perceived quality): ?
Newer (more innovative/up to
date/fashionable): ?
Faster (speed to market): ?
More desirable/ distinctive (successful
branding):?
Better reputation: ?
First mover advantages: ?
Provide your own examples of firms that
compete successfully on this basis. 3
RECOGNISING PATTERNS
Advantage comes from understanding and exploiting the
emerging competitive market patterns. There is scope for
advantage based on:
Search/ scanning capabilities
Analysis/ interpretation capabilities
Risk taking capabilities
Implementation capabilities
Change management capabilities
Ownership of/ access to required complementary assets/
capabilities
The ability to do this depends in turn on the effectiveness and
integration of the appropriate key business activities and
processes (distinctive capabilities/ competencies) which
underlie cost competitiveness, quality, innovation, speed to
market, network building, and customer intimacy.
Production, marketing, logistics, supply chain management,
collaboration, branding, quality, market development, product
development, and innovation.
Which in turn depends on organisational processes and
practices such as HRM, information and decision management,
and relationship management.
4
Porter’s approach to CA
Low cost/ differentiation may indeed be the
proximate cause of CA but they cannot be the
ultimate source.
Low cost positions, superior quality, speed to
market, or whatever, must come from
something or other the organisation has or
does.
For example in Ricardo’s time the superior returns
(CA) of some farmers indeed came from lower costs
which derived ultimately from superior quality (ie
more productive) land, a resource that was very
hard to make more of!
Nowadays Nokia’s or Dell’s superior returns come
ultimately from something similar, something
(scarce and hard to make more of) which allows
them to do things which enable them to offer a
better ‘value for money’ proposition to consumers.
manecon/options/create 5
Conditions for sustaining a
competitive advantage
A difference that matters
A gap in capabilities
1. Gap in business system
2. Gap in position
3. Regulatory and legal gaps
4. Gap in R&D and implementation
Sustainable differentiation
SWOT ANALYSIS OF
SUZLON(THREATS)
Intense competition
Over dependence on US
Foreign Exchange Risk
Technology Risk
Decreasing price of crude oil
SWOT ANALYSIS OF SUZLON
STRENGTH(Company Values)
People strength
Aggressive Vertical Integration Strategy
Strong R&D team
Expanding Manufacturing Capabilities
Strong Order Book
Aggressive Growth
SWOT ANALYSIS OF
SUZLON(STRENGTH)
Cost Reduction
Reverse Outsourcing
End to End Solution
Vertical Integration and Amalgamation
Market Leadership in India and Global
Presence
Growth
Integrated Business model
SWOT ANALYSIS OF
SUZLON(WEAKNESS)
Management Structure
Capital Intensive
Overseas Business
Cash Conversion
Growth in asset overweighting growth in
revenue
SWOT ANALYSIS OF
SUZLON(OPPURTUNITIES)
Environmental and Governmental Initiatives
Favorable tax exemptions
Untapped offshore market
Steady source of demand
SWOT ANALYSIS OF
SUZLON(THREATS)
Intense competition
Over dependence on US
Foreign Exchange Risk
Technology Risk
Decreasing price of crude oil
Company overview
Company overview
Timeline & Select
Milestones
Suzlon group – global
presence
Acquisition of Hansen
Transmission
Drivers for growth
Three key drivers to go beyond India:
1. Access to technology
Technical collaboration with Südwind (1995)
internalizing R&D by 1997/8
Formation of AE Rotors in the Netherland•
Netherlands
Product and process engineering in India
Alliances: e.g. joint venture with Elin Generators
Maiden venture into the US market (2002/3)
European technology platform
Experienced European wind energy professionals
(engineers, researchers,
technicians) as the core to drive Suzlon’s R&D
Compete in India
2. Access to people
Experienced professionals in e.g. international sales, project management,
service
management etc. with existing and tested relationships comprising the core
team
Follow the demand – North America, Europe, Australia, China etc.
Creation of Business Units (local organisations, local manufacturing etc.)
Follow shift in customer trends (consolidating and becoming bigger more
complex
higher demands for technology, services, Industrial plans etc.
3. Access to new markets/customers
Acquisitions: Repower / Hansen Transmissions
enter new markets and access new customers
build up experienced and international (but localized) managerial/specialist
base
local manufacturing to lower transportation costs
expand product portfolio
access state-of-the-art technology
Edge over competitors
Proactively addressing
challenges at their root
Blade cracks
Retrofit exercise under way after satisfactory conclusion of
RCA and solution
Order book slowdown
S88 V3, with demonstrable performance, positioned as
mainstay for internationalmarket
Strong pipeline of potential customers
Cost competitiveness, vertical integration and expanded
scope of services toprovide edge in tough market conditions
Global credit crisis
Well-diversified market reach hedges
geographical risk
Focusing on key markets and customer
relationships
Current customer profile dominated by utilities
and financially sound developers
Working capital management
Working capital buildup
Working capital reduction plan designed in
association with AT Kearney
Receivables
Program management for order fulfillment
Improvement in production planning process
Improvement in documentation and certification
process
Inventories
Procurement reduction
Non- and slow-moving inventory reduction
Redistribution of excess between units
Mismatch and excess inventory reduction
Sustaining competetive
advantage
