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... opportunity, which can be exploited by Southwest Windpower, is continuous expansion of the range of its operations and diversification of the line of manufactured products. Companys managers were able to properly define what feature of Southwest Windpower wind-power generators is going to attract potential buyers the most. Apparently, people who buy residential turbines are mostly looking for user-friendliness, as the main feature of these products. This is exactly where Southwest Windpower business philosophy comes in handy. As we have mentioned earlier, Company uses the principle of operational friendliness, as the cornerstone for its designing practices.
Therefore, it is not to hard to conclude that the competitive edge, associated with Southwest Windpower, corresponds to the fact that Companys wind-power turbines do not require users to be experts in the field of wind harvesting. Threats Given the fact that air market has not been fully explored, it is a threat of new entrants that appears to represent the greatest danger, within a context of Southwest Windpower trying to maintain its competitive edge. The designing and manufacturing of wind-power turbines does not depend on manufacturers ability to incorporate various technological breakthroughs in the line of its products to the degree that we associate with other industries, such as manufacturing of electronics, for example. Therefore, it is comparatively easy for commercial organization to establish itself on the market. In addition, the classical design of wind turbines (three rotating blades) is the subject to further improvements, because it does not allow utilizing winds kinetic power to the full extent. It appears that there is going to be less and less uniformity in how residential generators are being designed.
In its turn, this will increase the overall rate of competitiveness on the air market, which will have a negative impact on Southwest Windpower. In her article Tma's Vertical Axis Wind Turbine Introduces Competitive Advantage, Sterling D. Allan talks about the new entrant to the market of wind-power turbines - Terra Moya Aqua Inc. , which intends to stake a considerable share of this market with introduction of wind generators that exploit an entirely different operational principle: Terra Moya Aqua Inc. (TMA) is ready to go into production of a new vertical-axis wind turbine design that resolves some of the shortcomings that have plagued the traditional propeller design. While the various propeller designs now in use harness from 20 to 28 % of the winds power, Tma's design captures over 40 % of the winds power (Allan). It does not require a genius to understand that, if TMA manages to push its revolutionary designed turbines into production, it will result in Southwest Windpower sustaining great financial losses.
The example of TMA is only one among many. There are other companies that now consider entering air market. Thus, in the future, Southwest Windpower managers will have to apply an increasing amount of effort, in order to for their company to continue making profits. P.
E. S. T. (1) It is practically impossible to avoid discussing various political factors that affect the functioning of commercial enterprise, during the course of P. E.
S. T. analysis. The case of Southwest Windpower is not the exception. As we have mentioned earlier, 50 % of wind generators, produced by Southwest Windpower, are being exported abroad, which makes it harder for the Company to achieve a high degree of standardization, related to its products and services, as they are subjected to local laws and regulations. In its turn, it undermines Companys operational effectiveness.
On the other hand, in U. S. , there are comparatively few laws that regulate operating residential wind generators. However, government still strives to limit the number of people who are qualified for the installment of wind turbine on their property. In his article California Residential Wind Power, Sam Streubel provides us with overview of the bylaws that are applicable, within a context of operating wind-power generators on individual basis: A wind turbine needs at least half an acre of land to ensure it will be located far enough away from wind impeding obstructions such as trees, your house and other out-buildings (Streubel). In other words, only the landowners are entitled to operate wind turbines.
This, of course, significantly reduces the commercial appeal of Southwest Windpower products. However, in the near future, Federal government intends to make the owners of wind generators eligible for the substantial tax rebate. Californian government has already enacted such initiative. The same article states: Southwest Windpower's Whisper 200, 1, 000 watt wind turbine would qualify for a $ 2, 500 rebate. This represents 50 % of the total $ 5, 000 cost for a wind turbine (Streubel). Therefore, we can say that the political factors, which affect the functioning of Southwest Windpower, as commercial enterprise, can be described as generally favorable, for as long Companys turbines are being used in U.
S. (2) The realities of post-industrial era cause more and more people to rely on using their line of credit, when it comes to paying for goods and services. Thus, these people can be referred to as such that make various payments with the money they do not actually posses. In its turn, this results in situation when it is peoples ability to come up with credit payments on time that defines their social standing. This is the reason why citizens who rely on bank credits, never miss the opportunity to save on paying electrical bills, if they can.
Purchasing wind-power generator allows them not to worry about dealing with electrical bills altogether. The article Wind Energy Goes Mainstream With New Residential Small Wind Generator, which can be found on the web site of RedOrbit. Com, contains calculations, in regards to how much money the owners of Southwest Windpower's Skystream 3. 7 can save on paying electrical bills per year: Its anticipated that Skystream 3. 7 will save the average homeowner $ 500 to $ 800 per year, based on 4, 800 to 6, 600 kWh produced per year and a $ 0. 12 /kWh cost of electricity (RedOrbit. Com). Thus, we can conclude that Southwest Windpower products are especially appealing for the middle class citizens, who own real estate property and who had not fully paid off their credit debts. The people who consider themselves as such that belong to middle class, account for 60 % of population in this country.
The ever-increasing interest rates and the fact that U. S. dollar slowly looses its value, is going to cause more and more people to look for the opportunities to save. In its turn, this creates preconditions for the steady growth of wind-power generators popularity among citizens. Therefore, we can conclude that the current economical trends favor the manufacturing of wind-power turbines. (3) The socio-cultural factors, associated with modern living in Western countries, also appear as such that have a potential to boost up the sales of wind-power generators.
Ever since these countries decided to adopt the doctrine of multiculturalism, as foundation for socio-political policies, the society's integrity in such countries became the subject of rapid decline. It is not a secret that, when electrical blackout occurs in a large American city, this city becomes a battlefield, because people who should have been preoccupied with celebration of diversity, prefer to indulge in looting instead. During the racial riots in Los Angeles in 1992, many people suffered from the absence of electrical power, but there was nothing that they could do about it, because police officers and representatives of electrical companies were forbidden from entering the areas where diversity was being celebrated little too hard. This taught the White residents of California a very good lesson, which is why it is namely this state, where the rate of wind-power generators ownership is the highest in U.
S. The alienation of American citizens, along the racial lines, is only going to gain a momentum in the future. Even today, in every large American city we have Chinatown, little Cuba, little Puerto-Rico etc. At the same time, such cities also feature a so-called White suburbia, where people enjoy significantly higher standards of living. Residents of such suburbia's strive to have with outside world as little as possible. Therefore, buying wind-power generator for such people is nothing but a next logical step on the way of insuring their semi-independence from the rest of America, which slowly but surely transforms itself into another country of Third World.
The same processes are happening in the countries of EU as well. Therefore, the commercial appeal of wind-power generators, manufactured by Southwest Windpower, will continue to rise, as socio-cultural situation in Western countries continues to worsen. (4) The technological principle, upon which the process of wind harvesting is based, is very simple. Therefore, we cannot seriously anticipate that future scientific breakthroughs will significantly alter the essence of this principle. At the same time, manufacturing of a wind-power turbine is not as simple as it might appear. For example, Skystream 3. 7 consists of as many as 18. 000 separate parts. In order for the company that produces residential wind generators to be able to make profit, the process of manufacturing itself needs to be highly technological.
Southwest Windpower is the company known for its dedication to implementing new technological advancements into the line of its products, as soon as they become available. Therefore, we can say that, within a context of technology, Southwest Windpower remains highly competitive. It appears that in the future, Companys managers will have to switch from viewing the implementation of latest technology as such that allows Southwest Windpower turbines to provide customer with the highest electrical output, to viewing it as the way of reducing the price of final product. For example, Skystream 3. 7 currently costs $ 8, 000 to purchase and install, which suggests that it takes from 5 to 12 years for the generator to pay for itself. The only reason people continue to buy Skystream 3. 7 is that market does not offer them many other alternatives. However, the technological progress, in the field of wind harvesting, will create a situation when winning the customers, on the part of manufacturers, will directly correspond to their ability to offer competitive prices.
Conclusion Southwest Windpower Inc. was the first company that decided to utilize wind harvesting on residential scale. The practice showed that there is a great demand on wind-power generators. At the same time, customers willingness to pay from eight to ten thousand dollars for something that would simply allow them to save money on monthly electrical bills, suggests that their decision to buy wind-power turbine for home use is being motivated not by merely their intention to cut costs, associated with maintaining a household. Apparently, along with actual value, wind-power turbines contain a perceived value, for which people are willing to pay money. Southwest Windpower was able to fully exploit customers desire to be associated with innovative lifestyle.
However, the wind towers over private residencies have ceased to be a novelty. Therefore, it appears to be only the matter of time, before Company will have to reconsider its current business strategy, because, as time goes by, people will be less tempted to pay for the perceived value. The further commercial success of Southwest Windpower can only be possible, if Companys managers find the way of cutting the costs of production, for the purpose of reducing the price of final product. The most logical way to address this issue appears to be moving Companys production lines into China, as it has been the case with majority of industrial manufacturers in this country, which wanted to remain competitive. Bibliography: Allan, S.
Tma's Vertical Axis Wind Turbine Introduces Competitive Advantage. 2005. Pure Energy Systems. Com. Retrieved February 27, 2008 from web Borstadt, L. Southwest Windpower. 1996. Small Business Advancement National Center.
Retrieved February 27, 2008 from web Company History. 2008. Southwest Windpower. Retrieved February 27, 2008 from web Finally Time for Wind? 2005. Telos Net. Com. Retrieved February 27, 2008 from web Leichliter, M.
Residential Wind Turbines. February 25, 2008. Suite 101. Com. Retrieved February 27, 2008 from web Southwest Windpower. 2007. Answers.
Com. Retrieved February 27, 2008 from web Streubel, S. California Residential Wind Power. 2006. Solar Energy Articles. Com. Retrieved February 27, 2008 from web Wind Energy Goes Mainstream With New Residential Small Wind Generator.
June 27, 2006. RedOrbit. Com. Retrieved February 27, 2008 from web Abstract: This paper contains S. W. O.
T and P. E. S. T. analyses of Southwest Windpower Inc. , as commercial organization. Outline: History Pp. 1 - 3 S.
W. O. T. Pp. 4 - 8 P.
E. S. T. Pp. 8 - 11 Conclusion P. 12
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Research essay sample on Wind Turbine Companys Managers
