Porter's Five Forces Model For Siemens Wind Power

• An industry report concerning opportunities in offshore wind says a staggering 8 GW was grid-connected in Europe by 2015. The UK and Germany constituted more than 90% of this growth, thereby gaining the leading position in offshore wind as of today.

Although wind energy is one of the most expensive ways of producing energy, its benefits are far greater than its alternative energy production sources. Wind energy is a growing business mainly in the Midwest and

The five forces examines the dynamics within an industry. Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition and profitability over time. Understanding the structure of its industry is also essential to effective strategic positioning.

One of the fastest growing energy sources in the world, wind power is a globally advantageous renewable resource.

A total of 350 wind turbine units has been delivered to BP projects that when in operation will have a combined power generation of 560 MW

Porter’s Five Forces was next used to determine the competitive environment. The Five Forces method is used to determine a company’s profit potential for a particular industry.

Wind power supports 73,000 well-paying jobs across all 50 states. Nearly 20,000 American workers at over 500 factories across 43 states now build wind turbine parts and materials. The DOE’s Wind Vision report says growing wind energy to supply 20 percent of U.S. electricity by 2030 could support 380,000 jobs.”

The cause for this great rate of growth in wind power is contributed to tax incentives and state laws mandating renewable energy research. The nation 's total Wind power production is relatively low but some states like Iowa are investing in it heavily. Wind power produces 4.7 percent of the United States electrical energy and makes up over thirty percent of Iowa 's energy (American Wind Energy Association). Wind energy is gaining a lot of traction in northern states but almost does not exist in the southern states. When it comes to reliability wind energy is inferior to Hydropower. In order for a wind turbine to work wind speeds need to be around 8-55 mph and they are only efficient at wind speeds above 30 mph, anything below that minimal (National Wind Watch). This makes wind turbines less reliable because the wind can vary wildly throughout a day. Wind power also comes with some environmental impacts too. Wind Turbines kill tens of thousands of birds a year do to Turbines essentially being giant metal fans (Hosansky). Bats are especially affected because they rely on echolocation to see and giant moving blades confuse them into running into the blades.

We are facing an energy crisis on Earth. Burning fossil fuels are harming the atmosphere; this global warming and affects produces chemicals that hurt our body. People are starting to think about using alternative energy. Wind power would be our first choice, because it’s clean, inexhaustible and renewable. Today, wind power is mainly used in Europe. We believed wind power would be the main source of alternative energy for world use.

Wind Energy is a viable industry that has become a valuable energy source. The energy generated from wind is clean and efficient. The wind energy industry helps to ensure that electric demands are met, wildlife impact is minimal, the environment is not devastated, as well as creates new jobs during the construction of wind farms, daily operations, manufacturing components, and exporting components to foreign countries.

Noria Corporation Newsletter. (2010). Reliable Plant: GE Inaugurates New Wind Generator Manufacturing Facility. Retrieved October 19, 2010 from http://www.reliableplant.com/Read/27033/GE-wind-generator-facility

On the environmental aspect, wind energy does not contribute to pollution as almost no waste materials that contribute to pollution are produced by the usage of wind power (Wright, 2005). For example, in the States, wind plants compensate the emission of than 2.5 billion pounds of carbon dioxide and 15 million pounds of other

While wind power is currently more expensive per unit of energy (the initial cost of construction is spread across a turbine’s lifetime, generally around 20-30 years) than alternatives such as coal; wind power lacks the negative externalities that other energy

Wind Technologies must continue market penetration within the high voltage power supply manufacturing industry and establish itself as an industry leader based on its technical expertise.

Having conducted research on Porter’s Five Forces Model and the current business climate of the airline industry, I will be analyzing the industry using the Five Forces Model. Porter’s Five Forces model is a highly recognized framework for the analysis of business strategy. Five forces are derived from the model that attempts to determine the competitive intensity, competitive environment and overall attractiveness of an industry. The framework is based on five forces that describes the attributes of an attractive industry and suggests when opportunities will be the greatest and threats the least within an industry. The five forces include