Case Solution for Vestas Wind Systems China and the Global Wind Turbine Market
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Module
Managerial Accounting
Institution
Managerial Accounting
Get Vestas Wind Systems China and the Global Wind Turbine Market Case Study Solution Analysis Answers by Christine Cote, Saul Estrin, Daniel Shapiro, Katherine Nunner | Case ID for this case is W25129. This is a Plagiarism free Case Solution.
VESTAS WIND SYSTEMS: CHINA AND THE GLOBAL WIND TURBINE
MARKET CASE STUDY SOLUTION
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SYNOPSIS
The 2015 Paris Agreement to limit the rise in the global temperature to less than two degrees Celsius and
the associated global sustainability drive have accelerated a worldwide shift from the use of non-renewable
energy sources towards the use of renewables, including wind energy. As countries seek to address
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environmental concerns through collective and unilateral actions, wind power has become a more
affordable and accessible form of energy, especially over the last decade. There are four major global
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players within the industry: Vestas Wind Systems A/S (Vestas), Siemens Gamesa Renewable Energy,
Goldwind Science & Technology Co. Ltd. (Goldwind), and GE Renewable Energy. Vestas, a Danish
company, has deep roots in the wind technology sector, and it has positioned itself as a solutions provider.
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While it is a global leader, Vestas lacks significant market share in China, even though it has conducted
manufacturing there for decades. China presents a number of unique challenges, as it is dominated by local
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The Case Solution Starts From page 4
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ASSIGNMENT QUESTIONS
1. Vestas has maintained its position as a global leader in the wind turbine industry for several decades. What
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are the sources of Vesta’s competitive advantage, including its technology, brand, and GVC position?
2. Is Vestas’s competitive advantage sustainable without a strong market presence in China? In answering
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this question, examine the reasons why Vestas has been unable to sell in China in the past as well as
what it would likely take to do so in the future. In particular, how easily can Vestas’s core resources
and capabilities in Denmark be transferred to the Chinese market?
3. Should Vestas continue to expand in China despite its small share of a big market, or should it focus
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on other markets? What are the constraints associated with expanding in China? Consider demand
trends for renewable energy as well as the impact of rising costs on supply chains.
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4. Does Vestas’s strategy of low-cost production in China coupled with exporting to the US market still
make sense in the current context? For example, what are the supply chain implications of the United
StatesChina trade war and the COVID-19 pandemic?
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The Case Solution Starts From page 4
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1. Vestas has maintained its position as a global leader in the wind turbine industry for several
decades. What are the sources of Vesta’s competitive advantage, including its technology,
brand, and GVC position?
Quality: Durability and efficiency.
o Cutting-edge technology.
- Vestas’s wind turbines can last much longer than those of its competitors in China.
- Cheaper cost of ownership.
- Patents related to R&D and design.
Sustainability of the products.
o Energy-neutral after five months of operation.
Global reach allows for data analysis of wind forecasts.
o Vestas has the ability to gather considerable global data to interpret and forecast wind resources.
Economies of scale.
o Lower cost associated with the production of wind turbines.
The Case Solution Starts From page 4
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