Wind Technology Case Study
Situation:
Company 1. New company (10 years), small compared to competitors 2. Cash flow problems 3. Produces wind-profiling radar systems for weather forecasting and wind detection 4. 9-12 months to improve cash flow
Strengths 1. Adherence to specifications and quality production 2. Technical expertise provides full system integration—customers can order either basic components or a full system 3. Meteorologists and atmospheric scientists provide the customer with sophisticated support 4. All resources had been devoted to wind-profiling 5. Government contracts—account for 90 percent of sales
Weaknesses 1. Poor cash flow 2. Lack of a well-developed marketing department 3. No salespersons—management and engineers call customers 4. No production capabilities to compete in high-volume, low-voltage segment 5. No resources and technical expertise to compete in high-output segment
Opportunities 1. Wind Technology develops almost all of its major component parts and software, versus competitors who depends on a variety of manufacturers. 2. HOWEVER, the development of the power supply has been problematic, SO Wind Technology needs to develop power supply instead of purchasing an HVPS from outside supplier 3. HVPS has greatest potential for commercial success
Threats 1. Vaitra is unwilling to place additional money into Wind Technology 2. 9-12 months to implement new strategy and improve cash flow
Product
Sell component parts, specifically the high-voltage power supply (HVPS) 1. Small, with low level of output (less than 3kV) a. Communications 2. Medium (between 3 and 10 kV) b. Radars and lasers 3. Large (greater than 10 kV) c. High-powered X rays and plasma-etching systems
Market
Total market potential is estimated at $237 million
Wind Technology’s estimated market share is 0.5 percent, or $1.185 million
Finances
Margin: 30 percent
Company 1. New company (10 years), small compared to competitors 2. Cash flow problems 3. Produces wind-profiling radar systems for weather forecasting and wind detection 4. 9-12 months to improve cash flow
Strengths 1. Adherence to specifications and quality production 2. Technical expertise provides full system integration—customers can order either basic components or a full system 3. Meteorologists and atmospheric scientists provide the customer with sophisticated support 4. All resources had been devoted to wind-profiling 5. Government contracts—account for 90 percent of sales
Weaknesses 1. Poor cash flow 2. Lack of a well-developed marketing department 3. No salespersons—management and engineers call customers 4. No production capabilities to compete in high-volume, low-voltage segment 5. No resources and technical expertise to compete in high-output segment
Opportunities 1. Wind Technology develops almost all of its major component parts and software, versus competitors who depends on a variety of manufacturers. 2. HOWEVER, the development of the power supply has been problematic, SO Wind Technology needs to develop power supply instead of purchasing an HVPS from outside supplier 3. HVPS has greatest potential for commercial success
Threats 1. Vaitra is unwilling to place additional money into Wind Technology 2. 9-12 months to implement new strategy and improve cash flow
Product
Sell component parts, specifically the high-voltage power supply (HVPS) 1. Small, with low level of output (less than 3kV) a. Communications 2. Medium (between 3 and 10 kV) b. Radars and lasers 3. Large (greater than 10 kV) c. High-powered X rays and plasma-etching systems
Market
Total market potential is estimated at $237 million
Wind Technology’s estimated market share is 0.5 percent, or $1.185 million
Finances
Margin: 30 percent