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Writer's pictureJacinth Paul
Jul 1314 min read

Business Strategy Formulation Project for MBA and Senior Management Programs

Updated: Jul 27

Business Strategy Formulation Project for MBA

MBA Business Strategy Formulation Project


The project report titled "Opportunities and Threats in the Indian Clean Energy Sector: Mahindra and Mahindra Perspective" by provides an in-depth analysis of the Indian clean energy landscape. Focusing on Mahindra Susten, the clean energy arm of the Mahindra group, the report examines industry performance, macro-environmental factors, competitor dynamics, and industry forces. It highlights the opportunities and threats facing the sector in the short, medium, and long term. Through a comprehensive study, the report aims to guide strategic formulation for sustainable growth in the Indian renewable energy market. This project serves as a testament to the intricate research and strategic planning required to navigate and thrive in the evolving clean energy sector.


Opportunities and Threats in the Indian Clean Energy Sector


Executive Summary


This report highlights the Opportunities and Threats for the Indian Clean Energy Sector in short (0 to 1 years), medium (2 to 3 years) and long term (3 to 5 years) future. Clean Energy Industry analysis is presented which includes details and insights on performance, macro environment, competitors and industry forces with Mahindra Susten, the Clean Energy arm of the Mahindra group, at the center of the study. As strategically placed, Mahindra Susten’s mandate is to develop innovative solutions using renewable energy resources (Mahindra Susten n.d.). This study provides strategy formulation insights to pursue aggressive non-acquisitional growth in the coming years. All the strategy formulation frameworks and research details are added in the Appendix of this report.


Section 1 : Industry analysis


In 2021, India's renewable energy industry  is the world's third most appealing renewable energy market (IBEF n.d.). India is now ranked fourth in the world for wind energy, fifth for solar energy, and fifth for renewable energy installed capacity. The government is committed to increasing clean energy utilization and is currently working on a number of large-scale sustainable power projects as well as promoting green energy widely at the state and city level (MNRE n.d.).


In India, the Renewable Energy (RE) industry continues to play a significant part in the country's energy mix of which coal, oil and solid biomass contribute to 80% of the growing energy demands (IREDA 2021). India has a potential of 1,000+ GW Renewable Energy (IBEF n.d.). As a welcome development in tackling climate change, India's Prime Minister Narendra Modi commits net zero emissions by 2070 at COP26. (BBC 2021a) On the sidelines of  COP26, Mahindra, Amazon and Apple have joined the First Movers Coalition that will boost demand for zero-carbon technology (The Hindu 2021). The clean energy industry is gaining prominence not just because of the profitability, but also sustainability capabilities which will be added in the energy ecosystem of a country.


1.1 Industry and Sector Performance Analysis


According to Arunabha Ghosh, CEO of the Council on Energy, Environment, and Water, a leading climate think tank, India plans to build 500 GW of non-fossil electricity capacity by 2030, with half of the energy coming from renewables, resulting in a reduction of one billion tonnes of emissions and a 45 percent reduction in GDP emissions intensity. (BBC, 2021b)


India also plans to shift public transport and logistics to 100% clean energy in the future (Gadkari 2021). The PM-KUSUM program is one of the world's greatest efforts to solarize agriculture pumps and supply renewable energy to more than 3.5 million farmers. (Ministry of New and Renewable Energy, MNRE n.d.) Though the total generated units with Renewable Energy decreased in 2020, it's primarily due to the Covid19 pandemic as described in the report below. (MNRE n.d.)


The industry is marked by growth on one side and on the other there are significant barriers and challenges  pulling down the growth curve. The GDP and the economic indicators have been falling due to Covid19 Pandemic affecting various project's completion. Not many new projects have been started, diversion of funds to critical areas, lack of manpower, etc  have impacted the RE industry significantly in 2020-21 (IEA 2021). This may continue for the next few months or years depending on how the virus mutates and how the response actions are implemented. (Ref appendix 4.1)


1.2 Macro Environmental Analysis


The Invest in India initiative (For Renewable Energy sector) from the Government of India (GOI) provides opportunities for investors from across the world (Invest India n.d.). Similarly, Make in India initiative promotes investment, innovation, talent development, intellectual property protection, and the creation of best-in-class industrial infrastructure in the country  (IBEF 2018)

Renewable energy generation and distribution projects can get up to 100 percent FDI using the automatic route, according to the requirements of the Electricity Act of 2003  (Ministry of Law and Justice 2003). The policies from the Government under Make in India, Invest India, Renewable Purchase Obligations (RPO) and FDI regulations are favorable for companies operating in the clean energy sector. (GOI 2020) (Refer appendix 4.2, political factors)


Contrary to investment attractiveness, India is also struggling to reach its clean energy ambitions due to a lack of actual finance inflows in trillions of rupees required to expand the renewable energy sector (Agarwal 2021). In recent years, the Clean Energy adoption is on the rise due to sustainability conscious customer and lifestyle changes (WION 2021), increasing use of electrical vehicles and the ever increasing energy demand to look out for alternative power supplies (IBEF 2021). The technological advancements in the Indian Clean Energy sector needs a separate mention, where in the Startup ecosystem (Silicon India 2021),  R&D initiatives, GOI funds and schemes are driving the Indian RE Innovation wheel. (MNRE n.d.) (Refer appendix 4.2, technological factors).


1.3 Competitor analysis


Currently, Mahindra Susten is one of India's major EPC (Engineering, Procurement, and Construction) firms, with a portfolio of projects totaling over 3.9 gigawatts in various stages of completion. (Mahindra & Mahindra 2020). Mahindra Susten business line includes Utility scale Solar, Build solutions, Engineering, Distributed solar, Operations and Maintenance (O&M) across the length and breadth of the country.  (Mahindra Susten 2021) 


The Renewable Energy landscape in India is dominated by few incumbent players of which Suzlon, ReNew and Tata Power are the other notable companies. (Refer appendix 4.3, Competitor Analysis). Tata power and Suzlon carry vast experience in the sector with 25+ years of operation whereas Mahindra Susten and ReNew are the new players. All these companies are backed by strong governance from holding companies who have a brand presence across the country and abroad.


Also to note, Suzlon Energy is a notable firm in the Indian renewable energy market, holding the number one position in the wind energy sector (Suzlon 2021), while other companies are focused on diverse product and service offerings. Notable company is ReNew Power which started operations in the year 2011 and expanded to 8 states, focusing only on India without any international presence so far.  (ReNew n.d.)


1.4 Industry Forces Analysis


The Clean Energy sector has high initial and operational costs making it difficult for new and small players to enter the sector (IREDA 2021). The competitive rivalry among the companies in the Indian Clean Energy sector is high. (Refer appendix 4.4, Industry forces - Porter's five forces analysis). This is due to high initial fixed costs, with cumbersome entry and exit barriers, and also the low differentiation on the offerings (Kumar. J & Majid 2020a). The current projects of Mahindra Susten which are primarily into solar and wind energy can find substitutes in Nuclear Energy as India has high resources of Thorium. (IBEF 2021).


People, power and planet approach (Triple bottom line) is the cornerstone strategy of Mahindra Susten and the other industry majors (Mahindra Susten 2021) On similar lines, competitors also are giving a huge impetus to social impact like jobs creation, rural empowerment projects, fulfilling CSR obligations, sustainable jobs etc. The social acceptance of clean tech is increasing every year as we see inclusive growth opportunities. (Refer appendix 4.4, Industry forces - Porter's five forces analysis).


The clean tech startup ecosystem is on the rise with new players coming in every year with transformational and disruptive innovation (Silicon India 2021). Having few buyers from the Government and States and high switching costs, buyers are at an advantage (Johnson Et Al) in the Indian Clean energy sector. With few companies in this sector the five industry forces are in continuous play, which needs them to be monitored on a continuous basis.


Section 2: Opportunities and Threats


Opportunities in the Indian Clean Energy sector are many and it is seen as the crossroads of all successful global clean energy transitions. (IEA 2021, India Energy Outlook: 16) India's sustainable energy transformation is considered a hot investment opportunity (PTI 2021) which brings along competition to the limited infrastructure resources available. Listed below are the potential opportunities and threats in the Indian Clean Energy Sector in the short (0 to 1 years), medium (2 to 3 years) and long term (3 to 5 years) future. 


2.1 Short Term


2.1.1 Short Term Opportunities


Advantage India: Robust demand, Increasing investments, Policy support and Competitive advantage (IBEF 2019). India's renewable energy and energy storage sector would be boosted by hybrid and RTC (Round the Clock) projects. (Thakur 2020)


In a tumultuous 2020, amidst the Covid19 Pandemic India's renewable energy sector survived and thrived (Pyper 2021), which shows the capabilities and strengths of the sector in the country. Opportunities also lie in the upcoming solar Park Scheme 2.0, Electric Vehicle Charging Networks and New National Biogas and Organic manure programs (Kumar. J & Majid 2020)


CleanTech is one of the growing sectors in the industry, with disruptive ideas coming up from the startup ecosystem impacting all industry players (Silicon India 2021). Technology adoption promotes innovation and scalability. Companies are increasingly considering ESG investments as part of their strategic planning (Tyagi 2021) and this can provide Mahindra Susten to cater sustainable products and services to the demanding market.


2.1.2   Short Term Threats


Corporate Governance is critical to strategy formulation. It focused on the structures and systems of control that enable managers to be held accountable to legitimate stakeholders (Johnson et al. 2020, p. 141). Being a stakeholder model company, Mahindra Susten has significant influence from Mahindra & Mahindra, the holding company which holds all of the shares except 1 with Mr. Narayan Shankar. The committee structure of the governance model, though promotes deletion and inclusion, can add to delays in decision making and in reaching a consensus. (Refer appendix 4.9, Corporate governance issues identification).


The cost is the most significant impediment to the solar revolution. While solar systems are no longer as pricey as they once were and are widely available, alternative power sources are still less priced. (Shukla 2019)


Financial and fiscal obstacles and threats, which include several constraints, such as fund allocation and budgets that are not fulfilled on time. Policy and regulatory obstacles in the renewable energy sector include not comprehensive policy declaration (regulatory framework) among the Center and States. The MNRE's institutes, agencies, and other stakeholders have poor inter-institutional coordination, which might jeopardize timelines, costs, and quality. (Kumar. J & Majid 2020a) Also, Net metering implementation in the roof top solar market are challenges in the industry (Sahoo, Dr Sarak Kumar & Menon 2017)


2.2 Medium Term


2.2.1   Medium Term Opportunities

The support from Government of India and the financial support available through the funds of National Clean Energy Fund (NCEF) and India Clean Energy Finance Facility (USICEF)  (IREDA 2021) can be leveraged in Distributed renewable energy (DRE) projects (Gautam & Puryakayastha 2021)


The Centre has also given incentives for states and altered its policy to solve two primary difficulties that solar park developers face: land scarcity and a lack of transmission infrastructure. States will be paid '0.02 for every unit of power generated in solar parks, regardless of where it is delivered. Government incentivizes states under solar Park Scheme 2.0 (Akshay Urja 2019)


There is a growth of Electric Vehicles (EVs) usage in the country, which can increase demand for solar car charging stations solution developed by Mashindra Susten (Mahindra Susten 2020). On similar cleantech lines, we have the Initiative for a "Green City in Every State" which provides a huge market for clean energy products and services (IBEF 2021).


2.2.2   Medium Term Threats


Cost and Transmission & Distribution Losses: Solar PV (Photovoltaic) is still long way from being cost competitive enough to compete with other energy generating technologies on an equal footing. T&D losses too add to cost, with T&D losses of over 40% making solar energy generation extremely impractical. Also inadequate infrastructure initiatives can pose threats to the renewable energy industry growth in India.  (Sahoo & Menon 2017)


There is also a lack of right storage of solar energy in the country. In addition to that, as the Indian government is focusing on making solar energy more affordable, most solar system manufacturers choose to export their goods in order to make more money. (Shukla 2019b)


Troubled financial health of distribution companies (Discoms): Discoms rely significantly on the government subsidies and continue to lose money. Many Discoms sell electricity at less than cost, and their profitability is further harmed by T&D losses, power thefts, and political opposition to higher rates. (Shivaram 2020) Renewable energy initiatives do not attract a lot of developers. While newly formed developers lack institutional experience or financial backing, both of which are necessary to complete the project, they do have an institutional track history. (Kumar. J & Majid 2020b)


2.3 Long Term


2.3.1 Long Term Opportunities


India has huge untapped potential of renewable energy sources and in recent years there is a shift in the increase in renewable energy both on demand and supply side, making it an attractive market to invest in. (IBEF 2021)


Economic competitiveness of renewables can be leveraged in the long run. By resolving the mismatch between transportation and power planning, we can envision electric vehicles ( EVs ) as part of sustainable transportation. Increasing the interconnectedness between transportation and town planning.  (Shivaram 2020b)


Tie Ups with academia like National Institute of Solar Energy (NISE), National Institute of Wind Energy (NIWE) and Sardar Swaran Singh National Institute of Bio-energy (SSS-NIBE) will be beneficial in the long run. (MNRE n.d.)


Urban Air Mobility is another exponential growth industry, which is attracting a lot of investment and talent can be a promising industry to enter. All the big names like Google, Ola, Airbus, Google have put their bets in some of the growing startups. (Gomez 2021) 


2.3.2   Long Term Threats


Complexity of subsidy structure and involvement of far too many agencies, grid integration of expanding renewable power, and Distribution Companies' poor financial state continues to be there for a few more years. Scarcity of Land: According to one Economic Survey, India would be one of the globe's most land-scarce nations by 2050. Two of the key causes of shortage are rising population and urbanization. (Shukla 2017)


There aren't many R&D centers dedicated to renewable energy. Industrial plants are merely reusing already existing technologies as a way to save subsidies and engage in R&D. The government relies on foreign suppliers for equipment and technology. Because spare parts aren't manufactured in the area, they're scarce. There is a scarcity of properly educated human resources in the renewable energy industry. In addition, it is suffering from a serious labour shortage. (Kumar. J & Majid 2020c) Substitution to alternative forms of energy also can be seen as a long term threat, especially new technology innovations in thorium to extract safe and sustainable energy (MNRE n.d.)


Conclusion


The research is centered on Mahindra Susten's goal of developing ground-breaking renewable energy solutions to become an industry player in the clean energy sector. The support of the Indian government, as well as financial assistance and clean technology innovation, will be the growth drivers for Clean Energy in India. As electric cars (EVs) become increasingly popular in the country, demand for solar car charging stations and proposed green towns may increase. The industry is also known for its role in addressing climate change and related international accords. New areas of opportunities include Urban Air Mobility and B2C products to make a presence in the blue oceans. As we address development, innovation, and the need for long-term clean energy, we must also consider the industry's financial and regulatory difficulties, as well as significant entry and exit barriers. With the right strategy, planning and timely execution, Mahindra Susten can make a positive impact in the Clean Energy sector in India.


 

3. Reference List



 
Planning for an MBA or any Other Program to upgrade yourself? Check out Upgrad, you can use my referral code PAUL367. Just drop a hello on my mail programstrategyhq@gmail.com so that I will know if you have enrolled and for any inputs you might need throughout the process. Also check out my detailed blog about Deakin MBA. Wish you best!

4. Appendix


4.1 Industry and Sector Performance

1 Industry and Sector Performance Graph MBA Project

2 Industry and Sector Performance Graph MBA Project

4.2  PESTEL Analysis


Political Factors

Implication to organization

Likelihood Rating (1-5) B

Likelihood Rating (1-5) B

Total (AxB)

Source

1

Make In India initiative

Mahindra can capitalise on the available schemes and resources.

4

4

16

(Make In India n.d.)

2

Political Stability

This is imperative for any organisation to succeed for stable policies and regulations

5

2

10

(Johnson et al. 2020)

3

Government Taxation & Tariffs

More the Tariffs and Taxation, less profitability and vice versa.

4

3

12

(IBEF 2021)

4

Union Budget 2021-22

Short and Medium term advantages

4

4

16

(MNRE n.d.)

5

FDI Policy

Financing availability via the FDI route

3

3

9

(GOI 2020)

6

Policy & Regulatory obstacles

Delays in approvals, no centralised body, etc

3

2

6

(Kumar. J & Majid 2020a)

Economic factors







1

Economic Growth Rates

GDP falling due to Covid Pandemic affecting the projects completion, no new projects etc

5

2

10

(World Bank 2020)

2

Raising inflation

As inflation keeps rising people look for cheaper sources of energy

3

3

9

(World Bank 2020)

3

Good investment attractiveness

Helps to attract talent, resources, R&D capabilities from across the world

4

3

12

(PTI 2021)

4

Covid 19 Pandemic

Growth slowed down in the sector

5

3

15

(IEA 2021)

5

Financing and credits

High initial and operational costs to set up projects and services in clean tech

3

3

9

(IREDA 2021)

6

India Clean Energy Finance Facility (USICEF) Scheme

Low interest finance enhances adoption

2

2

4

(USICEF n.d.)

Social Factors







1

Country’s power consumption

Increase in power consumption is making people and companies to look out for alternative energies

4

4

16

(IBEF 2021)

2

Triple bottom line ideology

People, power and planet approach is the cornerstone of Susten stratergy

4

3

12

(Mahindra Susten 2018)

3

Rural empowerment

Contribution to the CSR obligation of the organisation can be achieved

3

3

9

(MNRE n.d.)

4

Growth of Electric Vehicles usage

Demand increase for solar car charging stations solution by Susten

3

4

12

(Mahindra Susten 2018)

5

Lifestyle Choices

People shifting to eco friendly and sustainable choices

3

3

9

(WION 2021)

6

Create sustainable jobs

Jobs creation can contribute to social acceptance of the projects

3

3

9

(IEA 2021)

 

Technological Factors







1

R&D, Patents & IP – Innovations

one of the core requirements for the growth of New and Renewable Energy

5

4

20

(MNRE n.d.)

2

Colleges and Academia relations

Tie Ups With National Institute of Solar Energy (NISE)

National Institute of Wind Energy (NIWE)

Sardar Swaran Singh National Institute of Bio-energy (SSS-NIBE)

3

3

9

(MNRE n.d.)

3

National Clean Energy Fund (NCEF)

Sector wise sanction is decreasing

2

3

6

(DOE 2018)

4

Clean Energy research Initiative

This promotes innovation and new technology creation for the RE industry

3

2

6

(Min of Science & Technology 2013)

5

CleanTech Startup Ecosystem

Disruptive ideas can come up from the startup ecosystem impacting all industry players

4

3

12

(Silicon India 2021)

6

Distributed renewable energy (DRE) projects

These projects have greater scalability and offer substantive co-benefits

4

4

16

(Gautam & Puryakayastha 2021)

Environmental Factors







1

Corporate Average Fuel Economy (CAFE) norms

embedded in BS-VI emission regulations and are part of the government's efforts to reduce vehicular carbon footprint. ... In Phase 1 (2017-2022)

4

3

12

(PTI 2021a)

2

Global warming

As climate conditions change there is more pressure in developing countries for clean tech adoption

3

3

9

(Kadka 2021)

3

ESG Factors

Companies are considering ESG investments as part of their strategic planning

4

3

12

(Tyagi 2021)

4

Pollution

As pollution levels keep rising in all the metros and cities, clean tech is gaining momentum

3

4

12

(Kumar. J & Majid 2020a)

5

Shift towards non conventional energy

India’s leading conventional energy producers are shifting towards non-conventional

energy resources to achieve their sustainability goals and contribute towards generating clean energy

3

3

9

(MNRE n.d.)

6

Weather Conditions for Solar/Wind Energy

Solar panels work only in the day and similar constraints for wind energy

3

3

9

(Shukla 2019a)

Legal Factors







1

Paris Agreement NDC Goals

As a high carbon emitter nation India is expected to follow the Paris agreement

4

3

12

(IEA 2021)

2

Mergers and Acquisitions

A significant growth driver can be strategic mergers and acquisitions within clean tech

3

3

9

(IBEF 2021)

3

Renewable Purchase

Obligations (RPOs)

Mandate that a certain amount of energy supply need to be coming from RE,

5

3

15

(MNRE n.d.)

4

Compliance & Regulations

The policies and regulations laid by MNRE would be legally binding by the sector

5

3

15

(MNRE n.d.)

5

COP26

India commits to be zero carbon by 2070

4

4

16

(BBC 2021a)

6

Power Purchase Agreements between states

Each state has its own legal policies and not much centralised legislation

4

4

16

(IBEF 2021)


4.3 Competitor Analysis

Factors

Mahindra Susten

Suzlon Energy

ReNew Power

Tata Power (Solar/TPREL)

Strategy

Planning to enter needs to enter new and progressive sectors with promising growth opportunities. (Mahindra Susten 2021)

The company has made strategic investments in different parts of the country over the years to develop a robust infrastructure and FULL INTEGRATION (Suzlon 2021)

ReNew Power will expand further into the open access segment and look to treble its market share by partnering commercial and industrial (C&I) players (ReNew n.d.)

Scale-up Renewables, Distribution, Services

and Energy Solutions Businesses. Focus on Sustainability with an intent to attain carbon neutrality. (Tata Power 2020)

Objectives

Mahindra Susten’s mandate is to develop innovative solutions using renewable energy resources. To be the world’s most admired brand in renewable energy (Mahindra Susten 2021)

Suzlon aims to emerge as the ‘foremost flag-bearer’ of the green energy sector. (Suzlon 2021)

The plan is to expand from a present capacity of 500 megawatt (MW) to at least 3-5 gigawatts (GW) in the next three years (ReNew n.d.)

Increase share of clean energy/ renewables to

50-60% of the generation portfolio by 2025

- 1 crore+ customer base across business by 2025

- More than 1 lakh EV Chargers across India by 2025

- Attain carbon neutrality by 2050 (Tata Power 2020)

Goals

Sets a goal for itself of becoming the world’s leading solar EPC Company. Planning to pursue aggressive non-acquisitional growth in the coming years, with the aspirations to become the leading player for the industry, not just the sector. (Mahindra Susten 2021)

At the forefront of India’s renewable energy efforts, with number one position in the wind energy sector (Suzlon 2021)

To create a carbon free world by accelerating the clean energy transition (ReNew n.d.)

Its value-creation model and Company’s core focus areas . To be a leading player in the industry and be an art of nation building.

(Tata Power 2020)

Resources and capabilities

Green Mobility,

800+ employees, Presence across the country, Parent company M&M brand, Solar power plants, Solar telecom towers, turnkey EPC solutions, etc (Mahindra Susten 2021)

The SCADA centre in India – Wind energy pioneer.

18,800+ MW Installed Wind Energy Capacity

5,450+ Workforce

~33% Cumulative Market Share in India

18 Countries Presence

(Suzlon 2021)

Wind and Solar. Has a current renewable asset base of “approximately 10.2 GWs at the end of Fiscal Year 2021, including GW of commissioned (ReNew n.d.)

Present across the entire power value chain of conventional and renewable energy and next generation customer solution (Tata Power 2020)

Any other

RE arm of the Mahindra Group (Mahindra Susten 2021)

No. 1 renewable energy player in the country with a cumulative installed base of more than 12,900 MW. (Suzlon 2021)

Spread across 8 states in India. Operates only in India

Leading solar player in India (Tata Power 2020)

Years in Service

11 years back

26 Years Track Record

10 years of its operation (ReNew n.d.)

29 years of experience, manufacturing capacity

Website

https://www.mahindrasusten.com/

https://www.suzlon.com/

https://renewpower.in/

https://www.tatapower.com/

4.4 Industry forces - Porter's Five Forces Analysis

Forces

Description

Strength

Strength of force (High/Medium/ Low)

Source

Competitive Rivalry

High fixed costs for projects

5

5

Johnson Et Al

High strategic stakes and exit barriers

5

(IBEF 2021)



Low differentiation in offerings

5

(MNRE n.d.)



Threat of entry

Scale and experience of incumbents

3

3.3

(Kumar. J & Majid 2020a)

Access to supply and distribution channels

3

(MNRE n.d.)



Incumbency advantages

4

(Kumar. J & Majid 2020a)



Threat of substitution

Nuclear Energy development

3

3.6

(IBEF 2021)

Technology advances in non-renewable energy

3

(IEA 2021)



CleanTech StartUp Ecosystem

5

(Silicon India 2021)



Power of Buyers

Few buyers in Gov and Non Govt sectors

1

1.6

(MNRE n.d.)

High switching costs because of long term agreements

3

(IBEF 2021)



Products are not differentiated

1

Johnson Et Al



Power of suppliers

Concentrated suppliers – Few in India as of today

3

3

(Kumar. J & Majid 2020a)

High switching costs of moving between suppliers

4

(IBEF 2021)



Options of forward integration


Johnson Et Al



Industry Force

Strength: High =5, Low=1

Competitive rivalry

5

Threat of entry

3.3

Threat of substitution

3.6

Power of buyers

1.6

Power of suppliers

3

Radar Plot Porters 5 Forces for Industry MBA Project

4.5 Scenario analysis – Scenario Cube

Scenario building

Government Spend/Policy Support



High

Low



Technology Innovation

High

Green India

 

New Markets exploration, New methods , Better processes, efficiency etc

AI/ML/VR Games

 

 

Private Sector dominant role

Less

Old is Gold School

 

Opportunities only in conventional technology and resources

Back to Stone Age

 

Stagnant Growth in the industry



4.6 Blue Ocean Strategy Canvas

Value Element

Mahindra Susten

Suzlon

RENEW

Tata Power (Solar/TPREL)

Proposed Mahindra Susten

Product Differentiation

3

1

2

4

4

Net Promoter Score

3

3

3

4

4

Impact on Environment

2

2

3

3

3

Operational Safety

5

3

3

3

3

R&D & Innovation

4

4

3

4

3

Branding

3

3

2

5

4

B2C Products/Services

0

0

0

0

3

Urban Air Mobility

0

0

0

0

4

Radar Plot Porters 5 Forces for Industry MBA Project

4.7 Blue Ocean Four Actions Framework

Eliminate

Reduce

None

Operational Safety

-

R&D & Innovation

Raise

Create

Product Differentiation

B2C Products/Services

Net Promoter Score

Urban Air Mobility

Impact on Environment

-

Branding

-

4.8 Salience Model





Clean Energy Sector Stakeholder Mapping : Salience Model

Stakeholder

Power

Legitimacy

Urgency

Type

Clean Energy NGOs

 

y

 

Discretionary

Government Regulatory Bodies

y

y

y

Definitive

Public Shareholders

y

y

 

Dominant

Management

y

y

y

Definitive

Employees

 

y

y

Dependent

Equipment Suppliers

y

y

 

Dominant

Financial Institutions

y

y

 

Dominant

Press and the Media

y

y

 

Dominant

Customers of the Clean Energy Products

y

y

y

Definitive

Local Residents and Business Owners

y

y

 

Dominant


5 Salience Framework Power Legitimacy Urgency

4.9 Corporate Governance Issues Identification

Corporate Governance Structure Indian Company

(Mahindra Susten 2021) Mahindra Susten is a Stakeholder company as per Shareholding of Promoters section of Mahindra-Susten -Annual-Report 2017-18. Parent company owns 13,82,61,727 shares and Mr. Narayan Shankar owns 1 share.


(Mahindra Susten 2018) 

  • No company Annual reports have been published on the company website since 2018.

  • Not sufficient powers in the committees in a stakeholder focussed model

  • Lack of autonomy with Mahindra Susten, parent company retains decision making (% of shares).


 

Planning for an MBA or any Other Program to upgrade yourself? Check out Upgrad, you can use my referral code PAUL367. Just drop a hello on my mail programstrategyhq@gmail.com so that I will know if you have enrolled and for any inputs you might need throughout the process. Also check out my detailed blog about Deakin MBA. Wish you best!

 

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