Clear strategies for a cloudy future
BLANDT INDUSTRIES CASE
In the wake of the financial crisis, the dairy industry, like most other industries, saw an increasing number of consumers choosing products according to price rather than quality or brand. Budget products filled up supermarket shelves, offering a low-cost alternative to the starved consumer. Not surprisingly, the crisis also affected the global dairy company Arla Foods, which saw a clear change in consumer behaviour but insisted, nonetheless, to inspire change.
Strategy in a turbulent and immature industry
For Bladt Industries, the solution was a strategic base case analysing the development path that Bladt Industries would follow if technology, political support and projects developed as expected, combined with an outline of different market scenarios and the “trigger points” that would initiate these scenarios. For each scenario, Bladt Industries developed a preferred response regarding investments in production capacity and strategic focus. This mapping exercise facilitated management discussions of the implications of each scenario, which alternative that would generate the most value for the company and what Bladt Industries could do to drive the market in the desired direction.
The scenario-driven strategy process has increased strategic transparency between the management team, the board of directors and the owner, and it has enabled Bladt Industries not only to stay a step ahead of the competition, but also to be prepared to act fast if external circumstances change. The identified trigger points are being monitored closely and their respective
scenarios have been mapped out to an extent where the management team, the board of directors and the owner are aligned on what actions to initiate and why, as well as what outcome to expect.
The most significant outcome of the process was Bladt Industries’ decision to set up a new production site at Lindø Industripark in order to begin serial production of jacket foundations for offshore wind, as this is the technology that appears most likely to replace the current monopile foundations as offshore wind projects move into deeper waters. By being the first in the industry to adopt serial production of jacket structures, Bladt Industries has mitigated both the risk of technology disruption and the risk of competitors acquiring the attractive production site at Lindø. Today, Bladt Industries is a key player – some would say the market leader – in offshore wind foundations and substations. The strategy process helped Bladt Industries secure a strong and robust platform for pursuing opportunities outside Europe – and as a proof of this, the first major project in the US has been confirmed.