Prysmian Group

cannot be compared to that in other
companies as its products involving the power grid. Treatment of power grids products is
different from other products. With this, the company’s products can’t be replaced with
products of another company. Also, the services of Prysmian Group Company are unique in
the market because the company has specialized in the production of electric wires hence, most
of the company’s services revolve around the production of wires such as designing, installing
and laying wires. In this regard, technical differences prevent the company’s products and
services from being taken to be substitutes for products and services of other companies.
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Strategy of the company
The Prysmian Group has employed several strategies of ensuring its success and operations
globally. The most potent of these strategies are the innovation and expansion strategies.
Innovation strategies
This strategy involves incorporating the latest and advanced technologies into the firm’s
operations, products, and services development. The main aim of this strategy is to make
innovations a part of the firm’s operations to enhance service delivery and product quality
(Katakam & Kumar, 2014). The company has employed a research and development division in
its operations to ensure continuous research to aid in the innovation of its products and services.
The R&D division has helped the firm incorporate new ideas, and innovative approaches ensure
that the products remain top quality. Prysmian Company has proved to be an innovation-driven
industry following its developed patent technology in fibers and optical cables. This technology
helps the firm deliver additional services and features its customers revere which translates to
increased sales and customer loyalty (Akkurt & Ulumür, 2015).
As part of its innovation strategy, Prysmian Group has employed the Prysmian Academy,
which serves as a training and development center for its employees. The academy has enabled
staff the opportunity to gain knowledge and expertise of the latest technologies which they can
use to innovate the designs, and manufacture of the latest products for the power grid systems
of its customers. The academy also enhances the capabilities of the staff members by providing
them with training and development courses. These courses aid the employees in enhancing
their skills, knowledge and competencies in dealing with the newest technology in power grid
products (Salvador, Mele, & Torres, 2013). The academy has significantly promoted the
innovation strategy of the business while increasing its scope of operation globally.
Most appealing customers
The company has a class of customers who require the services and products the firm provides.
These customers constitute different categories of customers such as commercial warehouses,
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industrial manufacturers, government institutions, and different categories of contractors who
deal with power projects, all who significantly rely on the Prysmian Group product.
Customers who were in a single standard are now diversified in nature and can choose
from a variety of products in the power grid industry (Katakam & Kumar, 2014). Most of the
contracts awarded to companies to deal with power projects now require these companies to
offer consulting services in addition to original project work. Prysmian Group targets this type
of customers because they come back with more projects as the company’s results are
exhibited from the successful completion of previous jobs completed by the company.
For instance, Extendable Solid Tube cabling solutions offered by Prysmian Group is highly
efficient for wind turbine manufacturers (Salvador et al., 2013). Work on wind turbines involves
innovative and unique technology which not only promotes energy efficiency but also ensures
that the customer and the wind manufacturer saves on costs. These types of projects are highly
profitable for Prysmian Group and makes the firm highly reputable and granted projects by
various customers; hence, having favorable terms from potential clients.
Mergers and expansions
The second key strategy employed by Prysmian Group is the expansion strategy. The
company uses mergers and acquisitions as its expansion strategies. Prysmian Group merged with
Grupo Pirelli in 2005 and 2006, with the aim of strengthening its market hold and hastening its
growth. The company went ahead and acquired brands such as Draka and Oman cables (Bloomberg, 2016). The company further leveraged the merger to Win-Whin opportunities in Europe
and Emerging markets in South America and Asia. Prysmian Group backed the strategy in
acquisitions that aimed at broadening the range of its products with the addition of Argentina
based telecom component supplier. From then on, the company has since made more strategic
acquisitions and mergers to expand its product horizon and widen its geographical expansions.
This type of strategy has given the company the competitive edge ahead of other companies in
the same industry. The acquisitions broadened the operations and increased the dominance of
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the firm in the power grid system industry. The growth and success of these strategies are evident
as the current revenues rest at 11 billion euros and the total cash flow at 500 billion euros.
References
Akkurt, A., & Ulumür, B. (2015). Sustainable Value Creation in the Fine and Specialty
Che...
Top quality work from this guy! I’ll be back!