In an era of government-driven public and private investment in electrical power generating infrastructure buying. Alien Invaders are almost predictable as new revenue is open for competition and enterprises can extend their brand value into new marketplace.
The Wind Power market has been fragmented in many suppliers during development. Determining what core competencies and customer life cycle demands has driven a learning curve in developing supply chains. Regulatory planning, compliance, and pricing models that fit different governments, geographies, and operating profiles challenged enterprises’ building to scale.
Building scale from geographic markets EU champions Vesta and Siemens/Gamesa and North American GE continued to lead unit volumes and capacity delivered. But wait! Over the last 5 years the developing Chinese market has grown 8 major players in the top 18 of a market with more than 30 competing suppliers. The top 4 enterprise suppliers deliver more than 50% of total volume in global markets.
“Green Mandates” and accompanying government-driven supports cycles of growth, consolidation, and market expansions. Oncoming demands for non-fossil fuel power sources drives delivery of environmentally friendly, high capacity, units with predictable life cycle costs. Relative currency values, local market competition for generation capacity, and grid integration costs favor the emergence of new competitive factors.
What conditions favor the entry of an Alien Invader to competitive global markets:
1) Financing and life cycle cost models that can shift expenses to fit local needs for capital investment/installation, operating costs, and longer term upgrades and retirements.
2) Technology improvements delivering reliability, resilience, and durability.
3) Regulatory compliance and global-industry standards support growth to scale or new entrants based on increasing customer experiences.
What actions can an Alien Invader take to disrupt markets:
A) Change when margin is realized on a sale and life cycle using financing muscle
B) Deliver technological improvements due to native advantages (rare earths)
C) Build scale and know-how in protected markets
Special disruptive aspects:
I) The global Wind Market is “new” and supplier reputation and know-how is being built by many competitors at the same time
II) Smaller competitors seeking to innovate can be “replicated” by larger competitors at scale easily
III) Many life cycle elements (blade replacement, waste disposal, and maintenance cycling) must still be worked out
The Alien Invaders are coming!
If you’d like to read other examples of Alien Invasions head over to www.ekalore.com/alien-invaders
If you’re wondering how to counter an Alien Invasion of your marketspace, or if you are interested in entering another space, set up a free consultation with a Senior Analyst at EkaLore – www.ekalore.com/contact
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