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In this case study, we present the strategic analysis and diagnostic of Basler Electric International (BEI). BEI is an entity and part of Basler Electric, a multinational company specialized in electrical power control system.
First, we will develop evolution path of Basler Electric from the beginning through historical presentation. This will be followed by a global of Basler Electric.
II. THE MULTINATIONAL BASLER ELECTRIC
As a young man, Carl Basler founder of Basler Electric Company recognized electricity's potential. He farsightedly began electrical work in a shop in his father's garage in the small industrial city of Highland, Illinois.
By the beginning of World War II, he had established a solid enough base to officially launch Basler Electric, making essential products for the war effort. Since 1942, Basler Electric has built a strong worldwide reputation for development and manufacturing of products to control the power of electricity. After World War II, Basler introduced a technologically-advanced line of transformers, coils and related electric specialties known for precision and longevity.
By 1951, the company greatly expanded its magnetic products capability, then entered the exciting new world of electronics. In quick succession, new products and technologies followed: rectifiers, ultrasonic power supplies, voltage regulators and battery chargers.
In 1959, Basler Electric stepped to the forefront with the first voltage regulator incorporating the famous Basler SRA. At that time it was considered revolutionary solid-state technology which advanced control and accuracy far beyond the capability of traditional electromechanical designs. Today, digital technology predominates in Basler's new designs.
From that pioneering move, Basler Electric has evolved with its line of protective relays which have developed from solid-state technology, to microprocessor based to fully communicating multifunction relays.
Today, the innovative products of Basler Electric are utilized in installations around the globe.
B. Presentation of Basler Electric, a multinational corporation
From a small beginning in 1942, Basler Electric has built strong worldwide reputation for advanced product development and precision manufacturing of products to utilize and control the power of electricity. The company is a privately-held corporation with worldwide headquarters in Highland, Illinois. Additional facilities are located in Taylor, Texas (USA), Piedras Negras (Mexico), Wasselonne (France), Suzhou, China and Singapore.
The different facilities of Basler Electric are managed by two entities:
- BASLER ELECTRIC CORPORATION (BECO)
- BASLER ELECTRIC INTERNATIONAL (BEI)
C. Basler Electric activities
Basler Electric development and manufacturing capability is partitioned in two system's groups: Power Systems Solutions Group and Magnetic Product Group.
1. Power Systems Products Group
This Branch of Basler Electric develops products and solutions for power system market. Products and solutions developed by this branch are repartis in 4 categories:
a. Static Excitation Control Systems
Basler static exciter systems are custom designed to support a wide range of applications regardless of the prime mover. Its excitation systems will enhance system performance and improve efficiency in new and retrofit applications. It can support excitation currents up to 10,000 Adc and field forcing levels up to 1500 Vdc. This makes the company, complete source for excitation system solutions.
Products of this category are: excitation Systems, Components and Accessories, Replacement Systems, Renewal and Spare Parts.
b. Voltage Regulators
Basler Electric manufactures a complete line of precision voltage regulators, both digital and analog, that will improve and optimize generator system performance for any application. Whether it's prime power or emergency back-up power, the company has regulators for high performance and reliability. It offers regulators that are certified with international norms and come standard with an 18-month warranty.
c. Genset/Engine Controllers
DGC-2020 is one of integrated genset control system that provides Basler Electric for genset control, transfer switch control, metering, protection and programmable logic in a simple, easy to use, reliable, rugged, and cost effective package.
d. Protection and Control Devices
There are number of industrial grade protective relays for various applications. Consistent with other Basler solid-state devices, these surface-mount units deliver fast response, precise control and long life. Products are: numerical relays, classic protective relays, automatic synchronizers plug-and-play and retrofit relays. An example is the auto-synchronizer relay BE3-25A which can synchronize one generator with another or to an energized station bus. Monitoring voltage on each side of the generator breaker, it provides signals for frequency and voltage correction through summing point outputs or optional dry contacts. When proper phase relationship is reached, it initiates breaker closure. A dead bus option is available for emergency generator applications. The BE3-25A can be specified for use with summing point output for electronic governors by American Bosch, Barber-Colman or Woodward.
2. Magnetic Products Group (Transformers)
This Branch produces dry-type custom transformers that range from 5VA to 2800kVA and are used in a diverse selection of OEM applications. The product group is the largest domestic manufacturer of Class 2 transformers for the air conditioning, heating, and appliance industries.
Basler transformers are also found in UPS systems, MRI equipment, vending machines, and broadcast communication systems. They also supply the majority of the small transformers used in Basler relays and regulators, and the large transformers used in conjunction with Basler's static excitation systems.
Image d'armoires B
III. BASLER ELECTRIC INTERNATIONAL STRATEGIY'ANALYSIS
A. BEI's presentation
Services offered by BEI:
- International sales
- After sale support
- Engineering and custom design
- Protective relay setting support
- Commissioning, expertise and repairing
- Excitation system manufacturing/renovation solutions for:
- Synchronous brushless generators/ motors (DECS-100/200/200N/400 cubicles)
- Static generators/motors (DECS-400, ECS cubicles)
- PMG, shunt/compound fed generators
- Small to medium-sized old power systems (mini-hydro, obsolete control system retrofits)
2. Operation area
BEI operates from Wasselonne (at 25km fare from Strasbourg City in France) since 1990 and is responsible to adapt and sell Basler products worldwide, outside North and South America.
Global reach is assured by utilizing a team of international “Direct Sales Personnel”, backed by an extensive worldwide representative and distributor Network. With established sales in more than 120 countries, timely expert support is of the essence. Quality service is guaranteed through Basler specialised engineers, as well as a worldwide network of trained professionals in locations certified as “Basler Service Centers”.
3. BEI customer partial reference list
General Electric Power Management
Marathon Electric Company
Moteurs Leroy Somer
Otto Bartholdi AG
Peebles Electrical Machines
Toyo Denki Power Systems
A. Global environment
The electrical power need to support economies gives high benefits. Let remark that energy consumed is higher in rich countries. World energy generation increased at an average annual rate of 3.7% in 30 years, more than the 2.1% increasing in all primary energy supply. The raising is caused by the big need of manufacture's factories, home devices in many developed countries and programs of electrification, in rural areas in developing countries.
De-regulation and new rules of the global electricity power markets involved hard competition. Today electrical power should be generated at low cost with many countries which impose strict environmental legislation, to decrease power generation's effect on the environment. The big challenges are recognized in providing electricity as efficiently as possible and strive to develop technology to meet your needs. Rich countries use third of world's energy. By having projection view of population and economic increasing in those markets, power consumption is expected to rise 49 % from 2007 to 2035 (according to the IEO2010 reference case projection).
2. Pestel analysis
We used Pestel analysis method to study the environment of BEI overall business and identify structural tendency that the company will face. This is to identify the components
(political, economic, sociological, technological, environmental and legal) of environmental influencing the future of the company. This method helps to highlight trends following:
a. Political component:
De-regulation in areas of the global electricity power markets involved hard competition.
b. Economical component
Now more than ever electricity has to be produced at a lower cost.
c. Environmental component
Many countries impose ever tightening environmental legislation to reduce the impact power generation has on the environment.
d. Technological component:
The enormous challenges are recognized in providing electricity as efficiently as possible and strive to develop technology to meet needs.
e. Legal component:
f. Sociological component:
The need of electrical power to support economies and lifestyles gives high convenience. Power consumption is higher in countries where less than 5 % of the population lives below the poverty line than it is in countries where most people live in poverty, four times higher. World energy generation rose at an average annual rate of 3.7% from 1971 to 2004, greater than the 2.1% growth in total primary energy supply. Collectively, developing countries use 30% of the world's energy, but with projected population and economic growth in those markets, energy demands are expected to rise 95 %. World energy consumption is projected to expand by 49% from 2007 to 2035.
3. Five forces framework
a. Rivalry among competitors
Creating competitive advantages to win bigger market share
- Acquisitions, mergers
- Battle for innovation and technological improvements
Number of company specialized in the electricity power control sector (providing products and solutions) are few but the level of competitive rivalry can be termed as medium, as there is sufficient scope available in the industry for the existing manufacturers.
b. Potential of New Entrants
- Some Previous and actual partners or customers who can buy products and develop solutions themselves.
- Some small players entering in the round and slowly gaining market share.
Concerning the supply of the main components of BEI systems, the company depends (as entity and customer) from Basler Electric Corporation in US.
There are some substitute products which can be a threat.
e. Bargaining Power of Buyers
Customer is king in today's world. The electricity power control sector has to be developed for adaptation with the development growing activities. So that the bargaining power of the buyer is more when compared to other sectors.
Even if there is high entrance barrier for newcomers
a. Strategic groups
b. Market Segments
Basler segments the markets it serves by identifying all customers as establishments whose core business is to engage in the specifying, engineering development, manufacture, service and repair, installation, distribution, sale, or use of electrical equipment.
Power generation segment: it serves those utilizing rotating equipment rated 3.5 MW and above or similar equipment for the generation of electrical energy.
Genset/Generator OEM: serves the market below 3.5 MW.
Utility T&D segment concerns companies that also engage in testing and who transmit or use electrical power, classified as users.
Industrial/Switchgear OEM concentrates on those who manufacture equipment to transmit or distribute power for Industrial or Commercial manufacturing, processes, or services.
Each market segment has a sales force dedicated to servicing the specific customers within its segment.