Renewable Sources of Energy

Annual Report Siemens 2016

Executive Summary
Renewable sources of energy are gaining immense prominence globally due to rise in pollution
and climatic changes. Siemens Wind Power, formerly Danregn Vindkraft A/S and Bonus Energy
A/S is a wind turbine manufacturer. It is a German company that is currently spread across the
globe employing large number of people. The main aim of this report is to analyse the
competitive strategy of Siemens Wind Power and suggest a well-defined strategy for it. This
report will follow the Porter’s Five Forces Analysis and BCG Matrix. The wind energy market
will also be analysed worldwide through proper resources. Siemens has seamlessly emerged as
the world’s largest producer of resource saving, highly efficient energy technologies. This report
will carry an in-depth investigation into the Siemens Wind Power divisions while conducting a
critical analysis of Siemens’ wind power division’s strategy. After doing a thorough analysis of
the wind power strategies of Siemens, this report will also analyse the strategies using BCG
Matrix and Porter’s Five Forces analysis to arrive and advise on the future strategic direction for
Siemens. Post analysis of competitive strategies and industry level scenario, certain
recommendations has been provided for the Company that can allow it to overcome its
weaknesses. The Company in order to compete across newer markets needs to substantially
reduces its operational costs which primarily includes maintenance of equipment. It further needs
to focus more on innovative techniques to remain competitive in the industry and enjoy fast
movers advantages.

Table of Contents
Executive Summary.........................................................................................................................2
1. Introduction..................................................................................................................................4
1.1 BCG Matrix...........................................................................................................................4
1.1.1 Star..................................................................................................................................5
1.1.2 Cash Cow........................................................................................................................6
2. Macro Factors Encouraging Growth in Renewable Energy........................................................6
2.1 Trends....................................................................................................................................6
2.2 Global Warming....................................................................................................................7
2.3 Government Subsidy.............................................................................................................7
2.4 196 Countries to Commit Paris Agreement...........................................................................7
2.5 Feed in Tariff.........................................................................................................................8
2.6 Non Renewable Energy is Exhaustible..................................................................................8
2.7 Carbon Trading Hits the Profits loss of Company.................................................................8
2.8 Valuing only Manufacture EVS by 2019..............................................................................8
3. Unique Selling Point (USP) of Siemens Wind Power and Renewable Division........................9
4. Reasons Why Siemen’s should go offshore..............................................................................10
5. Reasons for Remaining On Shore..............................................................................................11
6. Markets of Renewable Energy...................................................................................................11
7. Porter’s Five Forces Analysis of Siemens Wind Power...........................................................12
7.1 Threat of Entry.....................................................................................................................12
7.2 Intensity of Rivalry between Existing Competitors.............................................................12
7.3 Substitute Products Pressure................................................................................................13
7.4 Bargaining Power of Buyers................................................................................................13
7.5 Bargaining Power of Suppliers............................................................................................13
8. Market Entry Strategy................................................................................................................14
8.1 Entry Strategy......................................................................................................................14
8.2 Wind Power Technology to Be Customised as Per Location..............................................14
8.3 Strategy for Siemens............................................................................................................14
9. Conclusions................................................................................................................................15

10. Recommendations....................................................................................................................15
Bibliography..................................................................................................................................17