Cost calculation and market analysis of geothermal drilling methods : A study of competitiveness of Wassara water powered hammer drilling equipment

The aim of this study is to dig deeper and explore industrial marketing and specifically the many parts of the buying decision process.The study is conducted through analyzing the geothermal heat extraction industry where rivalry exists between companies competing to deliver systems satisfying customer needs in an as sufficient way as possible. The business area of drill hammers has been selected. Within this business area, detailed studies have been made on one specific company’s water powered drill hammer solution and how this differs from the conventional air powered drill hammer solution. Knowledge is created through a combination of established accepted scientific theories and cost calculations as well as profound interviews conducted with some of the most experienced and knowledgeable individuals within the industry.The result has been a display of the observable characteristics of the buying decision process utilized within the geothermal heat extraction industry. Results are shown in individual’s participation in the decision making unit, their preferences in terms of parameter interest and their cost awareness. Financial calculations have been made in order to illuminate a computed more actual cost of geothermal drilling. In accordance to prior academic studies and theories, the interviews shows that the most significant and valued parameter is of financial matters. The study shows some importance of other parameters in form of the industry’s knowledge of them. Furthermore, the comparison of the cost calculation and the interviewed industry representatives has indicated a divergence between the perceived difference in drill cost and the computed. To inform the industry on this matter is needed. Finally, the study has shown the great complexity of the buying decision process with all of its participants, different constellations and its construction.Validerat; 20110131 (anonymous