WIND TECHNOLOGY

Submitted To: Prof. Paragi Shah

Presented By:Harin Bhatt (A–08)

Badal Kandoria (A–23)Anusha Desai (B–06)

Darshil Gurjar (B–13)Abhishek Nayar (B–25)Nishu Raina (B–28)

Vishw Parekh (B–31)Karishma Vijay (B–42)Hardik Vekaria (B–61 )

COMPANY OVERVIEW

• Wind Technology was into the production of weather related radar and instrumentation (aircraft, ships, spacecraft, guided missiles, motor vehicles, weather formations, and terrain).

• In 1986, they condensed into wind profiling radar system known as “Wind Profilers”(Pulse Doppler Radar)

• Useful in – Wind and other atmospheric turbulence for weather

forecasting

– Detection of wind direction at NASA launch sites

– Meteorological applications

• 90% sales accounted from Government entities

• High growth market with only one competitor “Unisys”

• European firm named Viatra provided financial support to Wind technology

• Later it refused to finance more due to low sales of the company

• Wind Technology’s advantages over Best in quality and particular about specification

• New Strategy - High Voltage Power Supplies (HVPS)

SWOT ANALYSIS

STRENGHTHS

1. Stringent adherence to specifications and quality production

2. Technical expertise to provide full system integration.

3. Capacity to provide customers with basic components or the full system.

4. Provides sophisticated technical support.

5. Ability to provide customized products to customers.

6. Ability to manufacture component parts on its own.

7. Company’s staff provided sophisticated support in operation and maintenance

8. Level of system integration is low to medium for most industries for their HVPS.

9. Company had devoted all its resources to wind profiling unlike the conglomerate Unisys

WEAKNESS

1. Unable to increase its sales.

2. Severe cash crunch.

3. Condensed product mix.

4. Lack of a marketing department

OPPORTUNITIES

1. Can enter markets needing their component parts apart from HVPS.

2. Can increase their capabilities to enter the high output segment as well as low output segment of HVPS.

3. Can offer the market superior levels of quality, reliability, technical expertise and customer support.

THREATS

1. Marketing of HVPS could become a costly affair.

2. Possible buyout by a rival.

3. Product line of their competitors were more attractive.

4. Companies with a superior marketing department can have a edge.

PRODUCT OVERVIEW

• Every industry has different requirements.

• It is tough regulate current so voltage can be manipulated in order to adjust power

• High voltage power supply instruments that were manufactured by Wind tech were from 3Kv- 10Kv.

• Below this rating the instruments are for household purposes or small industries.

• The machines that were available in the market were highly specific in the sense that a machine was able to manufacture only a specific amount of power. i.e. it were of 5kv then it would provide 5 kv and nothing else but the machines of wind technology had a upper hand on technical side wherein the same machine was able to regulate as per requirements anywhere from 3kv to 10 kv.

CURRENT PROBLEMS

• Development of market for wind radars at a very slow rate

• Condensed Product Mix – Only Wind Radars since 1986

• Low sales

• Severe cash flow problems

• Viatra was hesitant in giving more money.

• Only 9 – 12 months to implement new strategy to improve cash flow

• Initial research had anticipated great potential

POTENTIAL CUSTOMERS

APPLICATION FORECASTED ANNUAL GROWTH

LEVEL OF CUSTOMIZATION

SYNERGY RATING

PERCENTAGE OF $237 MILLION POWER SUPPLY MARKET

General/University Laboratory

5.40 Medium/medium

3 8%

Lasers 11.00 Low/medium 4 10

Medical equipment

10.00 Medium/medium

3 5

Microwave 12.00 Medium/high 4 7

Power modulation

3.00 Low/low 4 25

Radar Systems

11.70 Low/medium 5 12

Semiconductors

10.10 Low/low 3 23

X-ray system 8.60 Medium/high 3 10

COMPETITIORS

Company Gamma

Glassman

Kaiser Maxwell Spellman

Annual Sales

$2 million $7.5 million $3 million $7 million

Mkt. Share

1% 3% 1.5% 2.9%

Price $5830 $5590 $6210 $ 5k-6k $6360

Delivery 12 weeks 10 weeks 10 weeks 8 weeks 12 weeks

Product Customization

No Medium Low Medium Low

Sys. Integration

Low Low Low Medium Low

Customer Targets

•Gen. Labs•Space•Uni. Labs

•Laser•Medical •X-ray

•Laser •Medical•Microwave•Semiconductor

•Radar•Power •X-ray•Medical

•Capacitors•Gen. lab•X-ray

MARKETING STRATEGIES

PROMOTION

• Three factors to be considered while selecting the elements in the promotion mix:

1) Wind Technology’s poor cash flow

2) Lack of a well-developed marketing department

3) The need to generate incremental revenues from sales of the HVPS at minimum cost.

PROPOSED PROMOTION MIX

• Wind Technology can think about a combination of the following elements:

Trade Journal Advertising

( $1 per person approx.)

Personal Selling

(Telemarketing/ Inside Sales + Field Sales)

COMPANY’S STRATEGY

• To overcome its problem the company decided to implement the following strategy:

– Control critical technology (major component parts) of it wind profiling products

• This strategy was important because the company was part of a high - technology industry in which confidentiality and innovation were crucial for success

• Also this strategy will help company gain a differential advantage

DECISIONS

• To proceed with HVPS spin off was risky, but not doing something to improve cash for was equally risky.

SUGGESTIONS

• Increase the HVP production in order to achieve economies of scale

• The Kilo Watt range produced would be 3Kv to 10Kv which can further be split in order to achieve low end customers

• Change the credit policy

• Dismantle the whole product and sell individual components to the other industry.

• Discussion open for class