Established in 2013, the case files the challenges facedby an emerging economy multinational enterprise (EMNE) when obtaining R&D knowledge from its technologically superior subsidiary company. Additionally, it demonstrates the strategies that Suzlon, an Indian wind turbine maker, embraced to catch up with international business leaders. It tracks how the astute and competitive chairman, Tulsi Tanti, of Suzlon led the enterprise to nourish with the capabilities to perform higher value added tasks despite being a delayed business entrant and, furthermore, from emerging market. The setting for case in worldwide wind power business, an emerging high-tech business. The case so demonstrates that EMNEs are entering and succeeding not only in mature industries but also in emerging industries.
By acquiring businesses that were technologically superior, Suzlon made a mark in the global wind power industry dominated by European and American businesses. While nearly all of its acquisitions successfully served their goal, the 2007 acquisition of the German wind turbine maker REpower of Suzlon didn't go as intended. REpower was a technology-centered company with expertise in large offshore turbines. Suzlon's goal was to access the technology of REpower and unite it with the low manufacturing cost and operational efficiency to obtain competitive advantage over opponents of Suzlon. However, the anticipated knowledge transfer from this acquisition did not materialize as quickly as intended due to REpower's refusal to share its technology with its parent, Suzlon.
It shows Tanti's attempts to make the acquisition work by balancing the "power" struggle between the Indian parent and also the German subsidiary company. Farther, by monitoring Suzlon right from its start, Suzlon's catch up strategies are also described by it to emerge as a fifth biggest wind turbine manufacturer in the world and a market leader in India.
PUBLICATION DATE: January 27, 2015 PRODUCT #: ISB049-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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