Professional Documents
Culture Documents
Submitted by:
EPGDIB 2014-16_Group7
Akshay (4A) | Sachin (36A) | Kavita (19A) | Shiv (40A) | Ashirvad (9A) | Rakesh (30A)
Contents:
1. What is Completive Strategy?
2. Background
3. What is Solar Energy? 4. Solar Power in India
5. Tata Power Solar An Introduction
6. How Tata Solar Follows Competitive Strategy?
7. Competitors
8. Various Strategies Followed by Tata Solar
9. Pest Analysis
10. Porters Five Force Analysis
11. Tata Solar SWOT Analysis
12. Accounting Information
13. Strategic Recommendations
14. References
Cost Leadership
In cost leadership, a firm sets out to become the low cost producer in its industry.
The sources of cost advantage are varied and depend on the structure of the
industry. They may include the pursuit of economies of scale, proprietary
technology, preferential access to raw materials and other factors. A low cost
producer must find and exploit all sources of cost advantage. If a firm can achieve
and sustain overall cost leadership, then it will be an above average performer in
its industry, provided it can command prices at or near the industry average.
Differentiation Leadership
In a differentiation strategy a firm seeks to be unique in its industry along some
dimensions that are widely valued by buyers. It selects one or more attributes that
many buyers in an industry perceive as important, and uniquely positions itself to
meet those needs. It is rewarded for its uniqueness with a premium price.
Cost Focus
In cost focus a firm seeks a cost advantage in its target segment. Cost focus
exploits differences in cost behavior in some segments. Such strategy helps firm
to satisfy sufficient consumers and gain popularity.
Differentiation Focus
In differentiation focus a firm seeks differentiation in its target segment.
Differentiation focus exploits the special needs of buyers in certain segments.
This type of differentiation is made to meet demands of border customers who
refrain from purchasing competitors products only due to missing of small
features. It is a clear niche marketing strategy.
2. Background
Indias strong economic growth, combined with countrys industrialization,
increasing population and increased access to power has led to rising demand for
power in the country. The need for renewable energy is obvious in todays world.
The problem is trying to get as many people as possible to recognize the need and
to spend their hard earned money on this technology.
3. What is solar energy?
Solar energy is, simply, energy provided by the sun. This energy is in the form of
solar radiation, which makes the production of solar electricity possible.
Electricity can be produced directly from photovoltaic, PV, cells. (Photovoltaic
literally means light and electric.) These cells are made from materials which
exhibit the photovoltaic effect i.e. when sunshine hits the PV cell, the photons
of light excite the electrons in the cell and cause them to flow, generating
electricity.
Solar energy produces electricity when it is in demand during the day
particularly hot days when air-conditioners drive up electricity demand.
Tata Power Solar is Indias largest integrated solar company that is driven by the
singular vision harness the power of sun to enable solar everywhere.
Headquartered in Bangalore, Tata Power Solar operates in three distinct segments
cutting-edge manufacturing, EPC services for solar power projects and creating
innovative solar products. Tata Power Solar with 25 years of deep domain
expertise, is one of the pioneering solar manufacturers in the world and India's
largest specialized EPC player. The company has more tha118% growth in 2104
as compared to 2013.
Tata Solar Power- Vision and Mission
Vision:
To be the most admired and responsible Integrated Power Company with
international footprint, delivering sustainable value to all stakeholders.
Mission:
To earn affection of customers by delivering superior experience and value,
thereby making them our ambassadors. Driving competitiveness by operating our
businesses at benchmark levels. Executing projects safely with predictable
benchmark quality, cost and time. Growing profitably across the power value
chain and allied areas, in focus geographies. Being the lead adopter of technology
with a spirit of pioneering and calculated risk taking. Practicing Leadership with
Care by pursuing best practices on Care for our Environment, Community,
Customers, Shareholders, People and creating a culture that will reinforce our
values. Enable employees and associates to achieve and unleash their full
potential to deliver outcomes in a sustainable way.
House Owners
Councils
Corporations
Land Owners /
Project Developers
Electricity
Companies
Motivation
Consumer
cent. This helped them penetrate the market deeper into the urban markets. In
B2B model, where corporate selling was involved, tie ups with major corporate
houses saved the margins of the distributors and Tata Solar could provide the
corporate houses a lesser price than the market. Thus, the target market of
professionals was reached.
7. Competitors
* Azure Power
* Bharat Electronics Limited (BEL)
* Bharat Heavy Electricals Ltd. (BHEL)
* Central Electronics Ltd. (CEL)
* HHV Solar Technologies Private Limited
* Micro Sun Tech Private Limited
* Moser Baer India Limited
* Photon Solar Energy Systems
* Punj Lloyd Delta Renewables
* Reliance Industries Solar Group
* Renewable Energy Systems Limited
* Solar Semiconductor
* Sun Energy Systems
* TATA BP Solar India Limited
* Titan Energy Systems Limited
* Titan Energy Systems Ltd.
* TRA International
* Waaree Energies Private Limited
* Webel SL Energy Systems Ltd.
* XL Telecom & Energy Limited
8. Various Strategies Followed by Tata Solar
Products
Goods: panels, transformers, inverters, necessary construction equipment. In the
proposal include all the equipment needed, spec sheets, and warranty info to
better inform the client of what they are buying. Services and ideas: have expert
and experienced salespeople, engineers, and installers. Perform analysis of the
property and financial implications of the purchase. Perform maintenance at no
charge if anything breaks.
Price
Give the customer a detailed accounting of all equipment and service fees, tally
it up, and come up with a total. This total is usually pretty high. Use marketing to
get the client to think of the purchase as an investment, rather than a huge
expense.
Place
Salespeople need to be available to travel to the individual sites to perform the
analysis, and go wherever they need to close the sale.
Promotion
Tata BP Solar has embarked on an extensive retail distribution network, named
Project Disha, to reach out to customers across the country and overseas
Advertising: newspaper, TV, radio, billboards, anything to get your message
across
Personal Selling: very important. Solar Panels are complex and customized. Meet
face to face with the potential buyer to understand their goals and resources. Give
them immediate feedback.
Public Relations: media is constantly reporting about new developments in the
renewable energy industry. Informs the public of the benefits of solar without
having to spend money on advertising.
Sales Promotions:
Direct marketing: uses direct communication to generate a response in the form
of an order or a request for further information.
Tata Solar Collaborations
- Transphorm Partners With Tata Power Solar to Introduce Indias Most Efficient
Solar Inverter.
- DuPont is collaborating with Tata Power Solar to provide a safer, more efficient,
reliable and cost-effective alternative to kerosene lamps for home lighting in areas
such as Uttar Pradesh, where the electricity supply is unreliable.
- Tata Solar working on Indo-China partnership for solar energy
- Tata Power Solar, Manipal varsity unveil solar car prototype
There are two overall forces in the social environment that are
influencing the growth of the renewable energy industry: increasing
environmental concerns and increasing energy demand. Growing
environmental awareness which is defined as the increasing knowledge
and understanding of the finite nature of many of the worlds resources,
the negative impact and contribution to climate change from burning
fossil fuels and deforestation, and the impact of global warming on
biodiversity, and the stability of delicate ecosystems, have led to
increasing environmental concerns.
Technical
Suppliers Power:
Solar technology has oligopoly characteristics dominated by a small number of
players, but then with government intervention and rising awareness the price of
solar energy is coming down. The time taken to reach grid party would also
depend on the bargaining power of the developers. Degree of influence exerted
over the industry by the suppliers:
-Product is unique and scarce,
-Suppliers are more concentrated in the European market because of better
technology.
-High switching costs for the firm in the industry is high.
The Suppliers of the solar energy supplies also too many industries; like rural,
agriculture, hospitals, hotels, etc.
There is no substitute product for solar.
The product is critical for the company.
Buyers Power:
The industrys major power lies within the buyers side. Since the awareness in
the market is very low, only a small part of residential segment i.e. high end
residential consumers is the pro-active group. But for the non-high end residential
consumers governments role will be important. Degree of influence exerted
over the industry by the buyers:
-Forcing down the prices, since the consumers are price sensitive
-Consumers are demanding in terms of value-added, higher quality
-Low switching costs for the buyers
-Substitute products are available
Weakness
Opportunity
Threats
14. References
1. www. moneycontrol.com
2. www. tatasolar.com
3. www. bridgetoindia.com
4. http://www.renewableenergyworld.com
5. Google finance
6. Mercom Communications India
7. MNRE (Ministry of Renewable Energy)
8. IREDA (Indian Renewable Energy Development Agency Limited).