Industrial Products & Capital Goods
Defining a Menu-Based Pricing Model for Operations and Maintenance (O&M) in Wind Energy
Client Challenge
Our client, a market leader in wind turbines with a global presence across Asia, Australia, Europe, Africa, North and South America, has built and consolidated its presence in 19 countries over the past two decades. The company provides end-to-end integrated services, from site selection and front-end engineering design to the manufacturing of wind turbines and components, as well as construction, installation, commissioning, and long-term operations and maintenance (O&M) of wind farms.
The client sought to evaluate the feasibility of providing menu-based O&M services for customers, as opposed to their current integrated end-to-end O&M services. The objective was to determine the suitable customer segments, understand the best practices in O&M globally and within India, and identify the models being followed by other players in the industry.
Our Approach
- Context Building:
- Initiated the project by understanding the client’s current objectives and strategic intent for offering menu-based O&M services.
- Stakeholder Engagement:
- Prepared detailed discussion guides and identified key stakeholders, including customers, competitors, and independent service providers in the industry.
- Global Practices Analysis:
- Conducted in-depth discussions with the client’s various country heads to establish the global practices adopted in offering O&M services.
- Feasibility Assessment:
- Conducted detailed primary and secondary research to assess the feasibility of offering menu-based O&M services to specific customer segments.
- Evaluated capabilities being built by various customer segments and their willingness to pay a premium for value-added services.
- Identified risks associated with various menu options that could be offered to customers in the market.
Our Impact
- Market Sizing:
- Estimated the overall windmill O&M market size in India.
- Menu Definition:
- Defined various menu options that could be offered to different customer segments.
- Best Practices:
- Compiled the practices adopted by various global players in the O&M market.
- Feasibility and Timing:
- Determined the feasibility of offering menu-based O&M services in India, identifying suitable customer segments and appropriate timeframes.
This strategic evaluation provided the client with a clear understanding of the potential and practical implementation of menu-based O&M services, allowing them to tailor their offerings to specific market needs and enhance customer satisfaction.