The Switch grows with the power of wind
The predecessor of The Switch, Vertego Oy, took part in Balentor’ s Coaching program for growth businesses (Kasvuyritysohjelma) in the year 2004.
The turnover of the Finnish technological pioneer in the renewal energy business, The Switch, grew quintuple in two years. Some of the reasons behind this were coaching for growth businesses, well made plans and skillful people.
One part in The Switch’s growth tale began in the year 2003, when three buddies and two companies, Finnish Vacon and German Semikron, created Verteco. The business idea for the company was to use the technology created by Vacon in a new business sector in renewal energy production. The first area chosen was wind power. – We decided not to conquer the whole world, but to take a clear focus for what we were doing. It has been a very good decision.
The Switch was born in the year 2006, when Verteco, Rotatek Finland and American Youtility combined their forces. The technological breach in the business sector increased the growth of the company. The power converter systems produced by The Switch are able to considerably increase the efficiency of a windmill. In the year 2008 the turnover was 53 million Euros. – Last year we tripled both, the turnover and the number of employees.
Well done background work is rewarding
Leading a growth company is balancing between strategy, obtaining customers and human resources. – If the basic choices are clear in your mind, doing strategy is not that difficult. Always, when we make a plan, we will think before hand what customers we are after. We know how much each customer relationship is supposed return.
In the year 2008, The Switch was building new premises, multiplied its production and hired a hundred new professionals. Owning a quarter of the shares creates commitment in the staff. – Yes, we can see the effects of this. We are working seriously, but with a good atmosphere. The extra effort needed for the growth would not otherwise be possible.
Customer need are being listened
The Switch has done well in the competition against big companies by using its own strengths. – We can’t compete with pure power. Our strengths are flexibility, focusing on what we know best and fast decision-making.
In the sales work, competitive advantage has been created from technological knowhow, customising products and competitive delivery times. – We don’t go to a customer meeting to praise our own products, but to ask a customer, what kind of a generator and power converter do they need. The Switch has delivered customized products faster than our competitors can deliver standard ones. The operations of the company are based on strong networks. – We can gain volumes in production through our partners. This is our philosophy in everything.
The future looks sunny
In the year 2008, the wind power market was close to 50 billion dollars. In the last years, the market has doubled every third year. The goal for The Switch is to multiply its turnover by five in the next three years. –We don’t need a big market share in order to reach our goal of 250 million Euros by the year 2012.
Communication agency Diverstas / Balentor Stakeholder magazine 2009