Suzlon and Bharat Forge

Submitted by: Submitted by

Views: 214

Words: 1373

Pages: 6

Category: Business and Industry

Date Submitted: 09/15/2012 08:04 AM

Report This Essay

Suzlon and Bharath Forge are the two companies which started as a small sector with extensive research, planning and with immense intention of expanding the business. Suzlon started up with a textile industry and was struggling with soaring energy and electricity costs and hence they created a new unique business model that is wind Technology Company. Wind power generation brought in success which in turn solved all other previous problems. Bharat Forge produced engine parts to meet domestic needs. Gradually Barat Forge emerged as an international leading company by going global. Baba N Kalyani’s Bharath Forge and Tulsi Tanti’s Sulzon provided complete range of solutions to customers. On the careful analysis of the case study we found the following similarities. Both firms acquired International technology and they used cheap Indian labour market to their advantage which resulted in an increase of their production rates and reduced variable cost. On the same lines acquiring these international firms helped them increase the customer base, credibility, product range as well as helped to make these Indian based firms internationally viable. They also entered into various joint ventures with foreign companies which helped them exchange expertise and improve upon their respective products. This move enhanced each of their international images which in turn made them truly successful global entities. Although they had small and humble beginnings, Suzlon and Bharat Forge made sure they had a strong grounding in their respective domestic markets that is in India before moving onto a global scale. As this required a technological expertise from foreign nations, they decided to go on an aggressive acquiring strategy. Due to this they had a substantial international market share. Both firms took huge risks knowing very well that their respective processes had huge initial capital. This showed that success waits on the path that is less traversed. Both firms made sure their...