Bharat Forge and Suzlon

What were key similarities in the two case studies?

What were key differences?

What did you think best explains the differences in the strategies adopted by the two firms?

Bharat forge and Suzlon have global vision and clear strategic goals, for instance Bharat Forge understood the importance of automation to compete in the world market, and Suzlon purchased the largest manufacturer of gear boxes located at Belgium. They had already become leaders in the domestic market before they ventured out into the global market. Their respective promoters took risky decisions which were considered foolhardy at that point in time. They pursued a bold global acquisition strategy to improve their technological know-how and to become world players in their respected areas. They setup operations outside the boundaries of the country to enhance accessibility for their clients thereby obviating logistical challenges and building stronger relationships, for example Suzlon setup operations in China, United States and Bharat Forge moved into US which are the largest market for automotive parts. Both the multinational corporations went global to broaden their customer base too. The companies tried to leverage the relatively lower labor costs in India as a result of which wind turbines manufactured by Suzlon are around 20% cheaper than their global substitutes. The firms focused on customer satisfaction. Bharat forge for example deputed personnel to foreign shores to take care of the warehouses and Suzlon executives accompanied their clients to banks to secure loans for funding the wind power projects. The companies focused on having a more able workforce. Bharat Forge provided extensive training to their workers after acquiring sophisticated machines and Suzlon made the move to shift their marketing division to Denmark in order to recruit staff who got laid –off by the merger of two rival companies. The firms acknowledged the importance of speed in delivery and low costs...