Bhel case study in detail

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About BHEL: 

Bharat Heavy Electricals Limited (BHEL), an Indian public sector engineering and manufacturing enterprise, is the largest engineering and manufacturing enterprise in India in the energy and infrastructure sector. BHEL is one of the largest integrated power plant equipment manufacturers in the world. Over the years, BHEL has developed core competencies in the design, engineering, manufacture, construction, installation, and servicing of a wide range of products and services for the energy and infrastructure sectors.

Bhel case study in detail

BHEL was established in 1964 and has since then grown to become one of the most respected and successful engineering and manufacturing companies in the world. BHEL has a diversified product portfolio which includes power plant equipment, boilers, turbines, generators, hydro–mechanical and hydro–electrical equipment, control and instrumentation systems, and other related products and services. It has also developed expertise in the areas of advanced robotics and automation, renewable energy, and energy efficiency.

BHEL plays

a vital role in India’s economy and is a major contributor to the country’s GDP. The company has a strong presence in the power sector with a customer base of over 1,400 utility companies, including state and central government owned power companies. BHEL is also a major player in the renewable energy sector, with a presence in solar, wind and hydro energy.

BHEL has a strong focus on research & development (R&D) and has developed a number of advanced technologies in the fields of thermal, hydro, nuclear and solar power generation. It has also developed advanced automation and robotics technologies to increase efficiency and reduce costs.

BHEL has also invested heavily in the area of energy efficiency and energy conservation. The company has been actively involved in the development of new energy–efficient products and technologies. BHEL is committed to sustainability and has been recognized as a leader in Corporate Social Responsibility (CSR). The company has taken a number of initiatives to improve the lives of its employees, the environment, and the communities in which it operates.

These initiatives have been instrumental in helping BHEL to become one of the leading companies in India in terms of sustainability practices.

 

Business model of BHEL:  

BHEL is a public sector undertaking which operates on a cost–plus pricing model. This means that the cost of producing the product is taken into account, and an additional amount is added to the cost to determine the final price. This additional amount is known as the profit margin.

The cost determination is based on the cost of raw materials, labour, power, and other production costs. The sales price of the product is determined by taking into account the costs and the desired profit margin.

BHEL also follows a market–based pricing strategy, in which the pricing of the product depends on the market conditions, the demand and supply of the product, the competition, etc.

The company also makes use of discounts and other promotional activities to make the products more attractive to customers. It also offers after–sales services such as installation, repair, and maintenance services to ensure customer satisfaction.

SWOT Analysis of BHEL

Strengths:

1. Established Brand: BHEL has a strong brand recognition and presence in the Indian and international markets. It is a well–known public sector undertaking and has been in business for over six decades.

2. Resource Base: BHEL has a vast resource base comprising highly skilled personnel, world–class infrastructure, and a strong technology base. This enables the company to develop and manufacture high–quality products and services.

3. Financial Strength: BHEL is a government–owned company and is financially backed by the Indian government. This ensures that the company has access to financial resources and is financially secure.

4. Diversified Product Portfolio: BHEL offers a diversified product portfolio that includes power, oil and gas, railways, steel, and other industrial products. This diversification helps the company to manage risks and capitalize on opportunities in different markets.

Weaknesses:

1. Low Margins: BHEL operates in a highly competitive market and has low margins as compared to its competitors. This affects its profitability and ability to invest in research and development.

2. Low Research & Development Spending: BHEL does not invest significantly in research and development. This limits its ability to innovate and develop new products and services.

3. Low Technological Capability: BHEL’s technological capabilities are limited and it is not able to keep pace with its competitors. This limits its ability to develop new products and services.

Opportunities:

1. Expansion in International Markets: BHEL has the opportunity to expand in international markets and increase its market share. This can lead to increased revenues and profits.

2. Growing Demand for Power and Energy: BHEL is well–positioned to capitalize on the growing demand for power and energy in India and other emerging markets.

3. Strategic Alliances: BHEL can form strategic alliances with other companies to expand its product portfolio and enter new markets.

Threats:

1. Increased Competition: The market for power and energy is becoming increasingly competitive, with new players entering the market. This is leading to increased competition and downward pressure on prices.

2. Economic Slowdown: Economic slowdown in India and other markets may lead to reduced demand for BHEL’s products and services, resulting in decreased revenues and profits.

3. Changes in Government Policies: Changes in government policies may affect the company’s operations and profitability.

 

The 4Ps of the Marketing Mix of BHEL

1. Product: BHEL offers a wide range of products such as heavy electrical equipment, power plants, nuclear and hydro power plants, transformers, switchgear, automation and control systems, lighting, turbines, and so on.

2. Price: BHEL offers its products at competitive prices. It also provides after-sales services, such as maintenance and repair, to ensure customer satisfaction.

3. Place: BHEL has its own network of sales and service centers throughout India as well as international offices in countries such as the US, UK, Russia, China, and so on.

4. Promotion: BHEL promotes its products through advertisements, brochures, website, and exhibitions. It also participates in trade shows and seminars to increase its brand visibility.

5. People: BHEL has a well-trained and experienced workforce, which is dedicated to providing the best customer service. It also has a team of research and development professionals who work hard to bring innovative products to the market.

6. Process: BHEL follows a well-defined process for the production of its products. It also follows strict quality control measures to ensure that the products meet the highest standards.

7. Physical Evidence: BHEL has a strong presence in both physical and digital space. Its products are certified and tested for quality, safety, and reliability. The company also provides after-sales services and support to ensure customer satisfaction.

 

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