DONG Energys målsætning: En analyse af DONG Energys 2020 målsætning inden for vindenergi

Kristina Richmann Lundorff

Student thesis: Diploma thesis

Abstract

This report is made to analyse DONG Energy in order to evaluate if DONG Energy will be able to fulfil their 2020 target, which is to own and operate a wind farm capacity of 3,000 MW. The question formulated for this report is: “How can DONG increase the number of wind farms in order to achieve their 2020 target”. In order to analyse DONG Energy’s ability to achieve this target the following tasks have been done. Company description, Value chain investigation, Strategic analysis, Porters5forces, PEST analysis, customer analysis, Growth analysis and a SWOT analysis. The internal analysis of DONG Energy shows that they have focused their market on North Europe. The internal analysis of DONG Energy furthermore shows that they have the necessary know how and strategy to fulfil their 2020 target, but the continuing challenge will be the ability to attract the necessary investments in this very capital intensive business segment. The main focus shall be on bringing the costs for offshore wind farms down. This shall be done through a continuing effort on optimizing and industrialising the offshore wind farm business. This report has especially focused on the market opportunities in Denmark, Great Britain and Germany. This is done because Denmark is the home market of DONG Energy while many wind farms have been build in Great Britain during the last years. Furthermore DONG Energy has recently made an investment decision regarding a wind farm in Germany and more are expected to follow. According to the PEST-analysis this seems to be a good choice because these countries have the right capabilities with regard to political climate, labour force skills and environmental climate. The politicians in these countries are motivated to fulfil the CO2 targets and have created the necessary support regime, which makes it attractive for companies to build and own offshore wind farms. The Porters Five Forces on the other hand shows that the competitive situation in the industry is fierce, and that there is considerable bargaining power, both from customers and suppliers and the risk of substituting products are great. The entry barriers are, on the other hand, also large and there is growth in the market, which gives DONG Energy the opportunity to increase their shares in the market and fight for their position as market leader. The purchase analysis has shown that the following critical success factors are important for the consumer:  Experience  Financial capacity  Economic viability  Reasonable time schedule. Due to the internal analysis it is found that DONG Energy has the right strategic capacity to meet these success factors. In order to reach their goals this report shows, during the strategic analysis, that DONG Energy should use a hybrid strategy, focus on their own market during market penetration and product development and using strategic cooperation. In conclusion this report shows that DONG Energy have an opportunity to increase the number of wind farms and reach their 2020 target.

EducationsGraduate Diploma in Financial and Management Accounting, (Diploma Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages92