Aggeko Value Chain

1. Introduction

Aggreko plc is engaged in the rental of power generation and temperature control equipment. It has gained several successes in its business to become the global leader in the power service industry over 49 years. To find out what factors have created the Aggreko’s successes and in what extent this company can achieve the competitive advantages in its business strategy, value chain analysis might be a suitable tool to offer evaluations about the activities through which Aggreko develops a competitive advantage and creates shareholder value. This report will first present the overview about value chain model, then applying this model in case of Aggreko to analyze some major activities in value chain. Quantitative and qualitative methods will be employed for this study. However, due to the limitation of time and ability to access data, this study mainly analyses secondary data based on operation information of Aggreko presented in its annual report. The structure of this report includes the sections as follow:

* The introduction about this report

* Overview of Value chain model

* Overview of Aggreko company

* Description about Aggreko value chain and analysis about major activities.

* Drawing the conclusion

2. Overview about Aggreko:

Founded in 1962 in Netherland, over 49 years established, Aggreko has become a global leader in the rental of power generation and temperature control equipment. Today, Aggreko manages 148 service centers and offices in 34 countries and employing more than 3,800 people. Financial Times clarifies it into service business industry (Morning star website, 2011). Its business is to provide power and temperature control solutions to customers through two business models. In the Local business, Aggreko hires its equipment to customers for them self operate it and Aggreko’s responsibilities are service and maintenance it for customers. In the International Power Projects business, as a power producer,...