The Differences in Strategies Adopted by the Two Firms - Bharat Forges and Suzlon
Essay by akshay4321 • September 16, 2016 • Creative Writing • 356 Words (2 Pages) • 888 Views
Essay Preview: The Differences in Strategies Adopted by the Two Firms - Bharat Forges and Suzlon
The differences In strategies adopted by the two firms . The significant strategy made by bharat forges was technology up gradation, enhance production and quality hence went international up gradation in possessing technological development. They focused on promulgate training to workers and employing more white collar employees to enhance the productivity. They focused on automation to improve their labour management and production. On the other hand suzlon used India’s low cost labour along with this acquired expertise to lower their overall costs. ‘Concept to Commission’ was their idea to overcome this problem. It involved site identification, wind measurements, budgeting, building the substation, grid connections as well as taking care of the products maintenance for 20 years. This made their clients to concentrate on their business and substantially receive the notice. Another difference in strategy was their global acquisition patterns. Bharat forge focused on expanding the company’s product range and develop closer client relationship and to ensure more efficient client logistic. Suzlon concentrated more on technological institutions. This enabled them to tie up with Europe’s expertise with India’s cost. The differences in strategies can also be explained by the number of units being produced. Bharat Forge use the concept of economies of scale to increase volumes whereas Suzlon did make use of the concept. Components made in India fed global demand for wind power and were in turn nourished by enhancements developed at R&D centers in Europe. Bharat Forge’s referred to Human Resource Management as “peoples systems”, thus highlighting his down to earth approach. Bharat forge placed a high degree of trust in local management teams making them a part of its integration strategy. Another big step in Bharat Forge’s journey was that the company was not interested in physical assets of the firm. This company already had a sound knowledge on technology and hence they gave more importance to clients. Suzlon had a very high investment and going global would help them recover their initial costs. As the global industry considered Indian firms as unreliable, it was imperative to acquire new technology to increase the credibility of the firm
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