Marketing strategic choice for wind power technology in China : case: Chinese domestic wind technology companies

Abstract

There are almost 80 wind turbine manufacturers in China. However, the supportive government policies are the fact behind the rapid growth of those case companies. In reality, there are less than 10 Chinese wind turbine manufacturers with actual production capacity. Most of them lack core technology and depend in many ways on state patronage. The current situation is worrisome. Therefore, the correct comprehension of wind power market conditions and the consequent adoption of right marketing strategies are of vital importance for those case companies to survive in the fierce competition. Vestas as a market leader got success in China and has powerful marketing strategy. The study analyzes the large-scale wind power technology market in China, focusing on what can be learned from the marketing strategy of Vestas by Chinese domestic wind technology companies to achieve success.

The study is performed based on qualitative case study. The data has been collected from primary sources like company annual reports, interviews, and the observation of the markets by visiting wind technology companies, and secondary sources like books and articles. The theoretical framework consists of development of marketing strategy, strategy planning process and marketing mix.

Focusing on the strategic planning process, the empirical part of the thesis starts with an introduction of wind power market area in China. With comprehensive descriptions in both macro and micro environment, the objective is to discover what marketing strategy the case companies are employing and what problems the case companies are confronting. Based on benchmarking Vestas, the best marketing strategy thus drawn could lend the case company competitive edge.

In conclusion, the thesis thoroughly benchmarks the marketing strategy of Vestas.A personal recommendation is stated, focusing mainly on development of the marketing strategy of Chinese domestic wind technology companies.