Vestas: Expanding the International Service Business in Norway

BUSINESS ORGANISATIONS AND
ENVIRONMENT IN A GLOBAL CONTEXT

Table of Contents
1.0 INTRODUCTION........................................................................................................................................... 3
2.0 BACKGROUND OF VESTAS......................................................................................................................4
2.1 WIND TURBINE INDUSTRY OF NORWAY...................................................................................5
2.2 MISSION, VISION AND OBJECTIVES OF THE VESTAS............................................................5
3.0 INDUSTRY ANALYSIS................................................................................................................................ 6
3.1 PESTEL ANALYSIS..................................................................................................................................6
3.2 PORTER’S FIVE FORCE FRAMEWORK..........................................................................................9
3.3 SWOT ANALYSIS.................................................................................................................................. 12
3.4 ANSOFF MATRIX.................................................................................................................................. 14
3.5 PORTER’S GENERIC STRATEGY....................................................................................................15
4.0 CONCLUSION.............................................................................................................................................. 16
5.0 REFERENCES.............................................................................................................................................. 17

1.0 INTRODUCTION
Every business organisation focuses on making significant growth and development.
The one of the major element which influences greatly to the business of a company is
its business environment. Business environment refers to all the internal and external
factors that influence the firm functions such as customers, employees, management
and business regulations (Andersen, 2017). This report is an attempt to investigate the
different business environment factors that should be considered by an organisation in
order to expand its business in a new market.
This report deals with the expansion of the business for the organisation named
“Vestas” with the support of strategic means. Vestas is a Denmark based company which
deals in manufacturing, installation, sales and servicing of wind turbines. It is largest
wind Turbine Company which operates in many nations of the world including India,
Italy, Germany, Denmark, United Kingdom, United States, Australia, Norway etc. In this
assignment, Norway is selected as the country for the expansion of Vestas (Carraher,
2018). Although Vestas is already operating in Norway, there are more growth
opportunities in Norway which are not still grabbed by the company. The overall aim of
this report is to consider the different factors to develop the effective strategies for the
successful business expansion and significant business growth in Norway.

2.0 BACKGROUND OF VESTAS
Vestas was founded in the year 1945 in Denmark. The firm has initially manufactured
the household appliance but in the year in 1979, it entered in wind turbine industry. In
the year 2013, it has become the largest wind turbine company in the world. Currently,
it is working in more than 50 countries with the workforce of 21,000 employees
(Blockeel, et al. 2016).
The annual report of 2017, Vestas monitors the performance of over 35,000 wind
turbines globally. The company has gained the trust of its suppliers and customers
which reflect positively on the business of the company. The company is taking is taking
advantage of being the oldest player in this industry and its strong technical foundation
in wind energy market (Andersen, 2017). The numerous strength of the company
makes it able to expand the business in suitable markets like Norway to enhance its
sales and profitability.