Cost of Quality - The Case of Suzlon's Blade Recall
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Case Details:
Case Code : OPER101
Case Length : 10 Pages
Period : 2007-2011
Organization : Suzlon Energy Limited
Pub Date : 2012
Teaching Note :Available
Countries : India, USA, Global
Industry : Wind Power, Engineering
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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The Beginning and Growth of an Entrapreneurial Organization
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Suzlon, headquartered in Pune, India, was engaged in the business of manufacture and sale of wind turbine generators and providing energy solutions. It was founded by Tulsi R Tanti (Tanti) in 1995 as an offshoot of a decision to move into wind energy production to secure the needs of power for his family-owned textile mill. The company began with a technology collaboration agreement with Sudwind GmbH Windkrafttanlagen(Sudwind).5 Capitalizing on a growing global demand for renewable energy sources and a shortage of supply of windmills, Suzlon grew from a start-up in 1995 to a company with a turnover of INR 206,197 million6 in 2010. Suzlon was able to secure a significant share of the global market within a short span of time since there was a huge demand for wind turbines across the world.
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There was a move toward use of environment friendly alternative energy sources and less of a dependence on fossil fuel based power plants. The company was able to fill the demand-supply gap by offering cost-effective solutions. Analysts remarked that big brands such as GE and Vestas7 were not able to fully meet the demands and Suzlon was able to capture this gap.8
By the end of 2009, Suzlon had supplied over 8000MW of wind power plants across the world and earned a global market share of 9.8%. It offered a complete range of products starting from 600KW to 2.1MW wind turbine generators. Pursuing an aggressive growth strategy, Suzlon made inroads into developed markets around the globe. By 2011, it had a presence in 21 countries viz., Australia, Belgium, Brazil, Canada, China, Denmark, Germany, Greece, India, Italy, New Zealand, Nicaragua, Portugal, Romania, Spain, Sri Lanka, the Netherlands, Turkey, Ukraine, the UK, and USA. The company had manufacturing bases in India, China, and North America and R&D establishments in Belgium, Denmark, Germany, India, and the Netherlands9...
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