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  • April 1994 (Revised September 1994)
  • Case
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KENETECH Corporation

By: William E. Fruhan Jr.
  • Format:Print
  • | Pages:16
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Abstract

Involves a strategic decision about how fast to ramp up sales. Improvements in technology have driven down the cost of electric power generated from wind turbines to the point where they are competitive with fossil-fuel plants. KENETECH needs to raise equity capital to finance its growth. A fast growth strategy requires a greater amount of capital to be raised prior to the time when the new technology is fully proven, possibly requiring a lower per share stock price in an initial public offering. A slower growth strategy may allow powerful competitors time to enter the market, limiting KENETECH's total share of the wind turbine market.

Keywords

Renewable Energy; Borrowing and Debt; Equity; Initial Public Offering; Growth and Development Strategy; Market Entry and Exit; Going Public; Sales; Competition; Energy Industry

Citation

Fruhan, William E., Jr. "KENETECH Corporation." Harvard Business School Case 294-111, April 1994. (Revised September 1994.)
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About The Author

William E. Fruhan

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  • The Case of the Unidentified Industries—2018 By: Mihir A. Desai, William E. Fruhan, Jr., Leanne Fan and Adil Bhatia
  • The Case of the Unidentified Industries—2018 By: Mihir A. Desai, William E. Fruhan and Leanne Fan
  • Burton Sensors, Inc., Spreadsheet for Instructors (Brief Case) By: William E. Fruhan and Wei Wang
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