The Lannisters

Tanmay Sharma

Visinigiri Sowmya

Jayesh Ruchandani

should provide its filter servicing expertise and collaborate with Turbine OEMs to sell filters to turbine manufacturers which then they sell to customers. To compete. company should target North America as first priority followed by Middle East as second priority. North America has low growth but market for Cartridge Synthetic Filters is big so more marketing cost is required to capture market in North America.Executive Summary • ABC Company Ltd should target Middle East (Arid Region) as first priority followed by North America(Mixed Region) in 120-180 MW capacity category. so ABC can expand its market share. • Middle East has high growth opportunities. This would help ABC to reduce its dependence on competitors for sales. Hence. sales through distributors. ABC Comp. • • In >180 MW category. Rest of Asia should be taken as next target market. Turbine Maintenance Provider should increase to compete with services and capabilities of competitors • • • • . Europe contributes 48% to filter sales but has little market for Cartridge Synthetic Filters. Middle East and North America should be the top target markets. Also. SO these filters should not be marketed in Europe.

The market share steadily declines from 16.30%.89% but market share is low at 10.29%.22%. Growth rate is high at 62.25 after 10 years and growth rate from base year is also high at 55. Also the growth rate from base year is high at 58. Growth rate is very less.20% but market share is low at 10.32% Has least market share .34% Growth rate is high at 45.56% after 10 years but has 3rd highest market contribution. 2 3 4 4 6 Rest of Asia North America Africa Latin America Europe It has the second highest market share contribution of 17.1% to 11.Expected Market contribution of GT of capacity 120-180 MW in regions Priority 1 Region Middle East Comments Cumulative Market share after 10 years is highest at 45. Hence this market should be captured at 1st priority in 120-180 MW turbine capacity.

Expected Market contribution of GT of capacity >180 MW in regions Priority 1 2 2 4 4 6 Region North America Rest of Asia Middle East Europe Latin America Africa Comments Growth rate is very low but has the highest market contribution at the end of 10 years of 50.29% and market share of 16. 0% Market Share .30% and market share of 14.56% and market share of 10.38% High growth of 45. Low growth of 11.84% No scope for gas turbine installtation.58% after 10 years.23% Growth rate is less high at 58.2% but low market share of 7.96% after 10 years Growth rate is less high at 55.

18 27.00 25. Middle East has highest market share of 27.18 3.41 >180 MW 10 years 2.18 4.00 26. In > 180 MW category.06 27.10 5.11 1.08 10. North America has highest market contribution followed by Middle East at 10.23 1.Expected Market Contribution of Cartridge Synthetic Filters (CSF) after 5 years and 10 years 120-180 MW 5 Years Europe (Marine) 1.37 0.72 2.13 5.93 10 Years 1.12 1. in category 120-180 MW.57 Middle East (Arid) Rest of Asia (Mixed) Africa (Arid) North America (Mixed) Latin America (humid) • As can be seen from above table.18% • .85 0.07 3.98 6.78 2.13% followed by North America.22 10.81 4.06 5 years 2.

• The major contributing factor for the growth will be the growing environmental concerns. a shift towards using alternate sources of energy will occur. Around 22% of the world’s electricity is consumed in China alone. .Macro/Micro trends that could affect sales • As chorus against nuclear power plants rises. At present. • Economic Recession can lead to reduce in demand of energy. countries in Rest of Asian nations are heavily dependent on coal for fulfilling their power needs. But gradually. focus is shifting towards gas-based power generation due to its clean nature.

02 1324270.10$ 79.99 8760 8640. Filter Price Replacement Rate Capacity (Avg)MW Down Time Turbine Wash Hours Price per MW Turbine Uptime Total Hours/year Operationg hours of turbine/ year E9 300$ 24 170 60 90 60 0.Value Proposition for E10 • Revenues earned/year from use of 1000 filters/ uptime taking turbine uptime.96 8760 7948.15$ 84.0 1439543. wash hours and losses in arid regions into considerations is calculated below.952 8 115$ 0.8 Energy Generated (Operating hours* Capacity) in MW/year Losses (in arid region) Energy after losses (in arid region) Cost at end of one years/filter Cost for 1000 filters (in million)/ year Revenues(Energy*Price/MW)/year (in million) 1434426 0.45 $ 0.72 E12 100$ 12 170 300 180 60 0.165$ 86.02 1405737.48 150$ 0.34 $ 1468922.4 1351296 0.02 .8 E10 330$ 24 170 20 12 60 0.37 $ 100$ 0.98 8760 8437. downtime.

though the price of E10 is 330 $. 2% in arid regions and comparable losses in other regions. revenues earned/ year per 1000 filters is 2 million $ more than E9 and 7 million $ more than E12 • E10 can work in very harsh conditions. .Value Proposition for E10 • As is evident from above. • Cartridge Synthetic filter has very low losses. • Less downtime and wash hours.

The next in priority comes the rest of Asia. . ABC filters should use their expertise in filter servicing. •To distinguish itself from the competitors. •Key action to advent a sizeable market for E10 is to get in collaboration with Turbine OEM manufacturers which is presently as low as 5%. To start with they should offer a limited time free servicing for their customers. This would consequently increase the share of distributors in client sales. •The two strategic positions to enter the market are Middle East and North America.Market Entering Strategy •The company sales to competitors stands at 48% of the total sales. •Client 2012 sales shows 24% market in North America while only 8% market in Middle East and hence the supply chain in Middle East needs to be expanded substantially. Now that company wishes to enter the market in head to head this number needs to be reduced.

Assumptions • The number of turbine installations for each generating capacity is calculated on a basis of 100. Since the E10 product is designed for turbine capacity 150-190 MW. • . That is. the basis for number of turbine installations for each generating capacity 120-180 MW and >180 MW is assumed to be 100. analysis only for turbine capacity category of 120-180 MW and >180 MW is done.

Distribution of Turbine Installations by generation capacity (measured on a basis of 100 for each generating capacity) 120-180 MW Distribution of GT Installations Base Year Country Europe 6.56 58.42 17.00 12.22 17.89 4.58 Middle East Rest of Asia Africa 12.96 14.23 North America Latin America 9.44 23.76 42.49 20.30 14.5 19.00 58.1 9.85 11.40 16.10 10.00 4.29 55.10 9.56 0.27 8.1 6.30 After 5 In base year years 11.43 >180 MW 45.35 15.9 % contribution of regions in gas Percentage growth from base year turbine After 5 years After 10 Years 7.83 After 10 years 10.11 16.61 28.96 23.34 11.78 12.23 2.11 20.07 9.90 11.61 After 10 Years 12.77 After 10 Years Middle East Rest of Asia Africa North America Latin America 41.9 11.85 11.47 0.00 60.1 10.99 16.84 .29 55.00 2.73 After 10 years 5.10 6.70 65.56 58.53 25.59 47.07 7.22 0.4 16.30 After 5 In base year years 6.20 16.07 0.55 After 5 years After 10 Years 12.00 59.74 13.02 62.50 0.2 16.00 52.43 45.42 12.90 5.3 61.30 0.64 10.2 After 5 Year 12.20 7.02 0.31 45.20 9.89 46.46 10.09 16.56 14.38 16.20 11.92 12.00 50.61 28.25 After 5 Year 7.32 Country Distribution of GT Installations Percentage growth from base year % contribution of region in Gas turbine Base Year Europe 11.59 47.02 12.71 41.3 0 58.04 14.