Since its establishment in Denmark in 1898 as a manufacturer of household appliances, Vestas Wind Systems A/S -- as it is now known -- has grown to one of the world leaders in the wind power industry. It was not until 1979, more than eighty years since its founding, that Vestas entered the wind marketplace with its first wind turbine, a model with a ten meter rotor and an output of thirty kilowatts (kW). Today, Vestas is pioneering offshore wind farming with its new turbine, specially designed for the unique challenges of sea winds and conditions. The V164-7.0 MW turbine has blades eighty meters long and has a rating of 7,000 kW, making it one of the largest, most efficient turbines in the world.
But not all of Vestas’s history has been smooth sailing. Its first major setback occurred in 1980, when a flaw was found in the fiberglass construction of the blades. Due to this discovery, all Vestas turbines were stopped until the flaw, which caused blade failure in storm winds, was fixed. Although it was a costly problem to resolve, there was one advantage: since 1981, all Vestas blades are designed and manufactured in Vestas facilities. Other setbacks followed; in 1985 a shipping company’s bankruptcy nearly caused Vestas’s bankruptcy when a large order of blades was unable to be delivered on time; the 2005 global economic recession was another serious dent in the company’s bottom line due to a weak dollar and soaring steel prices.
Through it all, Vestas has been committed not only to customer service, but to its vision of a sustainable energy future. Since its first foray into the wind power industry, Vestas has had its eye set on a day when wind power would equal the effectiveness of traditional fuels. And as technology progresses -- thanks in a large part to the company’s dedication to constant research and development -- that day is getting closer than ever before.
Monday, January 30, 2012
Trader Joe's Pulls Ahead
Since its founding in 1958, Trader Joe’s has grown from a small chain of convenience stores to the leading national chain of organic food stores, focusing on their inexpensive branded products and smaller stores. There are now 350 Trader Joe’s locations nationwide as opposed to the 300 stores operated by its closest rival, Whole Foods.
How has Trader Joe’s captured the market so wholly? Though it may seem counter-intuitive, one key is the fact that Trader Joe’s has smaller stores and fewer products on offer than other grocery stores. Instead of fifty thousand different products, they carry only four thousand. This means that in 2011, Trader Joe’s made $1,750 per square foot while Whole Foods made only $863. The other key to their profits -- $8 billion in 2011 -- is that much of what Trader Joe’s sells is Trader Joe’s brand. They buy direct from suppliers, and don’t need to charge shelf-placement fees to those same suppliers, which drives down cost.
And if you have yet to experience Trader Joe’s, with communities across the United States clamoring to be the site of the next location, chances are good you will.
How has Trader Joe’s captured the market so wholly? Though it may seem counter-intuitive, one key is the fact that Trader Joe’s has smaller stores and fewer products on offer than other grocery stores. Instead of fifty thousand different products, they carry only four thousand. This means that in 2011, Trader Joe’s made $1,750 per square foot while Whole Foods made only $863. The other key to their profits -- $8 billion in 2011 -- is that much of what Trader Joe’s sells is Trader Joe’s brand. They buy direct from suppliers, and don’t need to charge shelf-placement fees to those same suppliers, which drives down cost.
And if you have yet to experience Trader Joe’s, with communities across the United States clamoring to be the site of the next location, chances are good you will.
Monday, January 23, 2012
Robert Iger World
You might not know the name Robert Iger, but you certainly know the company he has led since 2005: The Walt Disney Company. A former weatherman and president of various divisions of the American Broadcasting Company from 1993-1999, Iger has spent the last seven years making Disney the world’s largest media company.
Iger worked strenuously to repair much of the ill-will left by his predecessor, Michael Eisner, who served as president and Chief Executive Officer from 1984-2005. Thanks to Iger, Roy E. Disney dropped the “Save Disney” campaign which had been instrumental in Eisner’s departure. Pixar Animation Studios, whose movies have made a combined $6.3 billion, marked another notch on Iger’s belt in 2006. Another major coup came in 2009, when Disney acquired Marvel Entertainment.
It remains to be seen where Iger will take Disney next. With the company’s continued domination in feature films, and an unparalleled marketing arm, there may not be many places left for an Iger-led Disney to conquer. But if there are, you can be sure Robert Iger will find them.
Iger worked strenuously to repair much of the ill-will left by his predecessor, Michael Eisner, who served as president and Chief Executive Officer from 1984-2005. Thanks to Iger, Roy E. Disney dropped the “Save Disney” campaign which had been instrumental in Eisner’s departure. Pixar Animation Studios, whose movies have made a combined $6.3 billion, marked another notch on Iger’s belt in 2006. Another major coup came in 2009, when Disney acquired Marvel Entertainment.
It remains to be seen where Iger will take Disney next. With the company’s continued domination in feature films, and an unparalleled marketing arm, there may not be many places left for an Iger-led Disney to conquer. But if there are, you can be sure Robert Iger will find them.
G. Gil Cloyd's Innovative Innovation
It may seem obvious, but innovation is the most important component for long-term success. The problem G. Gil Cloyd, chief technology officer at Procter & Gamble (P&G), faced was that innovation itself was beginning to look a little threadbare and musty. With the rapid pace of a global business like P&G, any innovation the company introduces has a shelf life; and when Cloyd began to analyze the problem in 2004 he discovered that innovation’s shelf life was rapidly decreasing.
Cloyd developed what he termed “holistic innovation.” Whereas the prior emphasis was more on technical aspects of a given product, Cloyd’s holistic innovation refocused priorities to the experience the product gave the customer. If the customer placed higher value in the product, he or she would be more likely to stick with it longer and remain more loyal to the product family.
G. Gil Cloyd retired from Proctor & Gamble in 2008, after thirty-three years of service. But his influence is still felt, even today. His successor, Bruce Brown, credited Cloyd for bringing a “broader, more-productive, more-open and more consistently successful innovation culture at P&G.”
Cloyd developed what he termed “holistic innovation.” Whereas the prior emphasis was more on technical aspects of a given product, Cloyd’s holistic innovation refocused priorities to the experience the product gave the customer. If the customer placed higher value in the product, he or she would be more likely to stick with it longer and remain more loyal to the product family.
G. Gil Cloyd retired from Proctor & Gamble in 2008, after thirty-three years of service. But his influence is still felt, even today. His successor, Bruce Brown, credited Cloyd for bringing a “broader, more-productive, more-open and more consistently successful innovation culture at P&G.”
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