Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
2013
Submitted by:
Team Iguanas, IIM Ranchi
Team Members
Pulkit Bohra M106/12 pulkit.bohra12@iimranchi.ac.in
Pulkit Mathur M107/12 pulkit.mathur12@iimranchi.ac.in
Tarun Gupta M044/12 tarun.gupta12@iimranchi.ac.in
8986733521
8051173946
9000015915
Executive Summary: ABC should target N America, Middle East & Asia
Strategic
objectives
Analysis
Opportunity
Assessment
Value
Proposition
Go-To-Market
Framework
Regional Analysis
Performed a Cost-Benefit
analysis for different types of
filters using case data and
team estimates
Developed a GTM
framework based on
existing GTM frameworks
and case specifications
Performed macro-economic
analysis and used market size
to identify most attractive
markets
Insights
Recommendation
It is an appropriate time for ABC to enter into gas-turbine air filter market. However, all regions do not provide equal
opportunities. It should target replacement market in North America; Growth market in Middle East and Rest of Asia in the
same order of priority; Restrain from entering into rest of the markets for now.
Opportunity
Assessment
Value Proposition
Competitors
Response
Go-To-Market
Regional Analysis
Recommendation
There is a tremendous growth in air filter market by volume and value in Middle East and Rest of Asia regions.
North America has the largest market in the initial years, but has almost stagnant growth.
Europe, Africa & Latin America have either very small markets or have shown negligible growth in market.
Inlet Air Filter For Gas Turbines-Market Sizing (>= 150 MW)
$350
North America
1,200
Synth-Catridge
$300
Value :
Cell-Catridge
1,000
Volume:
Cell-Catridge
Synth-Catridge
800
$200
600
$150
400
$100
Rest Of Asia
200
$50
$0
Europe Middle Rest Of Africa North Latin
East
Asia
America America
2012
2017
Source: Team analysis based on data accessed from Global Gas Observatory and case data
2022
Value(in million $)
$250
Opportunity
Assessment
Value Proposition
Competitors
Response
Go-To-Market
Regional Analysis
Recommendation
Moderate base
Low growth
Decommissioning of old
plants
Biggest gas-fired
power market
Shale gas boom
Slow growth
Growing, but
still a small
market for gas
power
Growing on a
very small base
Leveraging its
hydro-electric
sources
North America, Middle East & Rest of Asia seem to be most attractive regions
Source: Frost & Sullivan; International Energy Agency; MarketWire company website; TurbineTech company website; US Energy Information Administration
Opportunity
Assessment
Value Proposition
Go-To-Market
Huge Cost
Savings
Filter
Servicing
Expertise
Lower
Turbine
Downtimes
Competitors
Response
Regional Analysis
Recommendation
3.7%
8221
6.0%
7472
3.7%
7657
$60
$487,705
$479,267
$5,453
$493,254
$484,720
$448,312
$440,364
$44,356
$459,441
$451,492
$33,228
Opportunity
Assessment
Value Proposition
Competitors
Response
Go-To-Market
GTM Framework
Regional Analysis
Recommendation
Based on the product life cycle and the target market in a specific geography ,
one or more of the three pillars has been chosen as focus to meet our clients
business needs.
New Product Entry
Entry of Competition
Mature Markets
Customer
Customer
Customer
Customer
Marketing
Product
Channel
Product
Channel
Product
Primary focus
Channel
Product
Channel
Secondary focus
Post analyzing the primary and secondary focus for E10 in a region, we have studied the market entry strategy from various
perspectives and suggested the most preferred route.
From
Product
JVs/
Acquisitions
Distributors
/ Agents
Channel
Partners
Marketing
Strategies
Maintenance
& Service
Providers
To
customers
Opportunity
Assessment
Value Proposition
Go-To-Market
Competitors
Response
Regional Analysis
Recommendation
Opportunity Assessment
Among all regions, North America currently has the highest air filters penetration
and about 75 % of which are either Panel filters or Cartridge (cell) filters.
Considering the advantages of Cartridge (Synthetic) filters over other filters , all of
which have a filter lifetime value of <=12 months, North America potentially has a
huge Annual Replacement market.
The opportunity can be tapped by pitching in the new filters at the time of
replacement of the old filters.
The annual growth for North American market is low @ 0.4%, making the
opportunity for new market growth sales limited.
North
America
Market Sizing
Risks/Concerns
The Shale Gas boom in North America is on the decline. The Gas Turbine Market
has reached stagnation and is hence affecting the air filter market too.
The long & rigorous compliance needs for companies in North America makes the
operations in North America restricted.
Strong competition from imports by Middle-east & China.
North America is a mature market and should have a strong competitor presence.
They may attempt for a hostile takeover in pursuit of new technology.
Tapping the
Replacement Market
Customer
Product
Channel
Go-To-Market Strategy
5,000
4,000
3,000
Annual
Replacement
Market
New growth
Market
2,000
1,000
0
2012
2017
2022
Since the majority opportunity lies in the replacement market , hence the primary focus should be the existing
Customers and secondary focus should be on Channel & Product. Key to-dos are:
Develop a sales force which will target the turbine operators directly pitching the Value Proposition of the
new product.
Turbine maintenance providers, OEMs, Agents etc. who are in touch with the clients directly can be used
for pitching the product.
The existing channel of the competitors can be used to reach new customers. The competitors can be given
margin per sale.
Providing additional services like maintenance & Filter service with the new product will help increase
the reach.
Source: Team analysis based on data accessed from Global Gas Observatory and case data; Frost & Sullivan; Redefining GTM, AT Kearney; International Energy Agency
Opportunity
Assessment
Value Proposition
Go-To-Market
Competitors
Response
Regional Analysis
Recommendation
Opportunity Assessment
Middle east shows the highest growth among all the regions, making it an
attractive market for new product sales.
The replacement market is also growing at a steady rate , which can be harnessed
by using customer centric marketing.
22 % of the market in middle east for air filters is captured by Cartridge
(cellulose) filters. Given our value proposition, this is a prime market to target
replacements.
The majority of energy requirements of Middle east is fulfilled by gas powered
power plants, further the dependence on oil fired power plants is set to reduce.
Risks/Concerns
Burgeoning gas demand in the region combined with concern over security of long
term gas supply
Increased domestic gas demand, delayed supply response, limited regional pipeline
cooperation, and below-market pricing pose long term threats
Growing investments by countries over alternative sources of energy (Solar &
Nuclear).
Non-Homogenous distribution of gas reserves.
Tapping the
New Growth market
Customer
Go-To-Market Strategy
Product
Channel
Middle
East
Market Sizing
Volume ('000 units)
1,600
1,400
1,200
1,000
800
600
400
200
0
2017
2022
Significant Annual Replacement market can be targeted by targeting the Customer pillar of the
GTM model.
Tie ups with Turbine operators, Maintenance providers, OEMs .
Focus Agents, sales representatives in matured markets like UAE, Egypt , Qatar etc.
Opportunities in New Growth market can be harnessed by focusing on building the Channel pillar
Collaboration with Distributors in the region to enhance the reach.
Tie-up with other companies operating in this region, on share of margin basis.
Source: Team analysis based on data accessed from Global Gas Observatory and case data; Frost & Sullivan; Redefining GTM, AT Kearney; International Energy Agency
Opportunity
Assessment
Value Proposition
Go-To-Market
Competitors
Response
Regional Analysis
Recommendation
Opportunity Assessment
ASEAN countries along with Japan, South Korea, Australia and New Zealand have
more than 35% of their energy requirements met by Gas Power plants.
The share of gas in the overall fuel mix is expected to rise strongly in the above
countries in the current decade.
ASEAN is promoting the development of a trans-ASEAN gas pipeline system
(TAGP) by 2020, aimed at improved cross-national links.
The Fukushima nuclear accident has marked a fundamental shift in Japanese
energy policy, turning away from nuclear energy towards other sources. This
implies strong growth for gas-fired power generation as a substitute.
Rest
of Asia
Market Sizing
Risks/Concerns
India and China have a high dependence on coal making the role of natural gas in
fuel mix extremely limited.
Unstable regulatory environment in some of the Asian countries.
Lack of gas resources, Japan and South Korea are highly dependent on foreign
supplies.
Capacity expansion has been significant till now, however, countries like China and
India are also investing heavily in Solar & Wind Energy
1,400
Existing Total
No. of Filters
1,200
1,000
800
Annual
Replacement
Market
New growth
Market
600
400
200
0
Tapping the
New Growth market
Customer
Product
Channel
Go-To-Market Strategy
2012
2017
2022
Source: Team analysis based on data accessed from Global Gas Observatory and case data; Frost & Sullivan; Redefining GTM, AT Kearney; International Energy Agency
Appendix
MW
<30
30-60
60-120
120-180
>180
North America
Latin America
Total Installed
No of
Capacity
Powerplants (MW)
429
4763.88
198
8710.3
181
2367
117
1241
565
28192.5
Total Installed
No of
Capacity
Powerplants (MW)
1
17.94
7
272
2
153
8
1140
65
37833.8
MW
<30
30-60
60-120
120-180
>180
Africa
MW
<30
30-60
60-120
120-180
>180
Total Installed
No of
Capacity
Powerplants (MW)
3
78
4
216
12
1130
8
1169
56
33229
Middle East
MW
<30
30-60
60-120
120-180
>180
Rest of Asia
MW
<30
30-60
60-120
120-180
>180
Total Installed
No of Power Capacity
Plants
(MW)
8
169.7
18
741.7
38
3741.6
35
5426.7
299
255485.48
Total Installed
No of Power Capacity
Plants
(MW)
2
53
10
475
26
2607.4
16
2322
148
123515.5
Europe
MW
<30
30-60
60-120
120-180
>180
Total Installed
No of Power Capacity
Plants
(MW)
2
22
7
326.4
27
2703.5
26
4030
225
154671.5
2.40%
8.10%
5.20%
7.30%
0.40%
4.30%
10 year
CAGR
1.10%
4.70%
4.50%
5.00%
0.40%
3.80%
10
71.52
83.55
73.15
0.42
369.36
41.84
73.24
90.32
76.95
0.45
370.84
43.63
75.00
97.64
80.96
0.49
372.32
45.51
76.80
105.54
85.16
0.52
373.81
47.47
78.64
114.09
89.59
0.56
375.31
49.51
80.53
123.33
94.25
0.60
376.81
51.64
76.37
110.06
95.26
0.57
378.31
52.33
77.21
115.23
99.55
0.60
379.83
54.32
78.06
120.65
104.03
0.63
381.35
56.38
78.92
126.32
108.71
0.66
382.87
58.52
79.79
132.26
113.60
0.69
384.40
60.75
Europe, 79.79
Year 10
Latin America,
51.64 Europe, 80.53
Year 5
41.8471.52
Year 0
North
America,
376.81
369.3
6
83.55
Middle East,
123.33
73.15
0.42
Rest Of Asia,
94.25
Africa, 0.60
Rest Of Asia, 113.60
Africa, 0.69
71.52
83.55
73.15
0.42
369.36
41.84
Cell
214.57
83.55
219.45
1.06
554.04
104.59
Cartridge
Synth
429.14
125.33
219.45
1.59
1,385.10
156.88
Cell
85.83
200.52
175.56
1.02
443.23
150.61
Synth
143.05
501.31
219.45
1.27
1,846.80
83.67
Year 4
Panel
Europe
Middle East
Rest Of Asia
Africa
North America
Latin America
78.64
114.09
89.59
0.56
375.31
49.51
Cell
235.92
114.09
268.78
1.40
562.96
123.77
Year 5
Cartridge
Synth
Cell
471.84
94.37
171.14
273.82
268.78
215.02
2.10
1.35
1,407.39
450.37
185.66
178.23
Panel
Synth
157.28
684.55
268.78
1.68
1,876.53
99.02
80.53
123.33
94.25
0.60
376.81
51.64
Cell
241.58
123.33
282.76
1.50
565.21
129.09
Year 9
Panel
Europe
Middle East
Rest Of Asia
Africa
North America
Latin America
78.92
126.32
108.71
0.66
382.87
58.52
Cell
236.77
126.32
326.12
1.64
574.31
146.30
Cartridge
Synth
Cell
483.16
96.63
185.00
296.00
282.76
226.21
2.26
1.44
1,413.02
452.17
193.64
185.89
Synth
161.05
740.00
282.76
1.81
1,884.03
103.27
Year 10
Cartridge
Synth
Cell
473.54
94.71
189.48
303.17
326.12
260.90
2.46
1.58
1,435.77
459.45
219.46
210.68
Panel
Synth
157.85
757.92
326.12
1.97
1,914.36
117.04
79.79
132.26
113.60
0.69
384.40
60.75
Cell
239.37
132.26
340.80
1.72
576.60
151.86
Cartridge
Synth
Cell
478.75
95.75
198.39
317.42
340.80
272.64
2.58
1.65
1,441.51
461.28
227.80
218.68
Synth
159.58
793.55
340.80
2.07
1,922.02
121.49
2012
Cell
321.85
125.33
329.17
1.59
831.06
156.88
Cartridge
Synth
429.14
125.33
219.45
1.59
1,385.10
156.88
Cell
85.83
200.52
175.56
1.02
443.23
150.61
Synth
71.52
250.65
109.72
0.63
923.40
41.84
2017
Cell
353.88
171.14
403.17
2.10
844.44
185.66
market growth
Cartridge
Synth
471.84
171.14
268.78
2.10
1,407.39
185.66
Cell
94.37
273.82
215.02
1.35
450.37
178.23
Panel
Synth
78.64
342.28
134.39
0.84
938.26
49.51
2022
Cell
355.15
189.48
489.18
2.46
861.46
219.46
Cell
5.66
9.24
13.98
0.10
2.25
5.32
Synth
11.32
13.86
13.98
0.15
5.63
7.98
Cell
2.26
22.18
11.18
0.10
1.80
7.66
Synth
3.77
55.45
13.98
0.12
7.51
4.26
market growth
Cartridge
Synth
473.54
189.48
326.12
2.46
1,435.77
219.46
Cartridge
Cell
94.71
303.17
260.90
1.58
459.45
210.68
Panel
Synth
78.92
378.96
163.06
0.98
957.18
58.52
Cell
2.60
5.94
14.68
0.08
2.30
5.56
Cartridge
Synth
5.21
8.91
14.68
0.12
5.74
8.34
Cell
1.04
14.25
11.74
0.08
1.84
8.01
Synth
1.74
35.62
14.68
0.10
7.66
4.45
Cartridge
Synth
Cell
Synth
30
30
24
10
24
24
24
24
$80
$100
$100
$300
2400
3000
Avg. Price
Total Price
2400
3000
Average retention in power generation (%) post subtracting losses.
Marine
0.92
0.98
0.92
0.95
Arid
0.94
0.95
0.96
0.98
Humid sub-tropical
0.96
0.96
0.94
0.96
55.2
58.8
55.2
57
Arid
56.4
57
57.6
58.8
Humid sub-tropical
57.6
57.6
56.4
57.6
1.8
-1.8
1.8
Arid
2.4
1.8
1.2
1.2
Humid sub-tropical
Cartridge (Syn) filters become cost effective for plant capacities greater than below mentioned
Marine
333
333
Arid
250
333
500
500
Humid sub-tropical