Ørsted in the Asia-Pacific: A Case Study of Strategy Development

Alexander Tandrup Jensen

Student thesis: Master thesis

Abstract

The motivation for this thesis has emerged from the growing attention to energy policy and the expanding market of offshore wind energy with the case company, Ørsted, being a pioneer. This combined with an interest within the field of internationalization and strategy development has fostered the focus on Ørsted’s venture in Taiwan and its qualities to improve strategy development for Japan. The thesis takes point of departure in the exposed case of Ørsted’s venture in Taiwan. A thorough analysis of internal and external factors of Ørsted uncovers underlying factors that have shaped the venture of Ørsted in Taiwan. Based on these findings, the underlying external factors in Japan are assessed to serve as predictive elements for how Ørsted’s strategy should be developed for Japan utilizing the experiences from Taiwan. In order to develop a strategy for Ørsted in Japan, the author has adopted the strategy tripod and adapted it to include theoretical additions of relevance using the firm-based view, the industry-based view and the institution-based view as the base for strategy building. Interviews with Ørsted employees have provided extensive knowledge on the venture in Taiwan, the internal resources and capabilities of Ørsted and the industry. The utilization of Ørsted’s idiosyncratic resources and capabilities has enabled Ørsted to enter Taiwan and based on experiential learning Ørsted can build on their resources and capabilities to improve the strategy in Japan. The external environment in Japan is expected to share similarities with Taiwan regarding natural conditions, government emphasis on local content and Confucianism, from which experiential learning from Taiwan should be drawn. The political economy of both countries emphasizes close relations between companies. Based on the findings, Ørsted should pursue the potential partnership with TEPCO. It will enable Ørsted to utilize the relationship to gain access to political stakeholders due to the network of TEPCO empowered by trust based on Confucianism. Ørsted should utilize their enhanced capabilities as an institutional entrepreneur, building on the venture in Taiwan, to influence the auction criteria’s weight on project size where Ørsted can maximize economies of scale due to their internal idiosyncratic capabilities related to their integrated approach. The Dai-Ichi Kangyo keiretsu and local content requirements will direct Ørsted’s strategy, where based on the learning from Taiwan, Ørsted should couple Japanese novices with industry incumbents. If absorbed and internalized, the experiential learning with Confucianism will enable Ørsted to improve their abilities in negotiations and coordination of the supply chain. The ringi system will require an adaptive approach of Ørsted as decision-making in Japan is significantly different to Taiwan.

EducationsMSc in Business, Language and Culture - Business and Development Studies, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2020
Number of pages110
SupervisorsAradhna Aggarwal