1. Provide a problem statement, (based on a list of issues/symptoms from the case)
2. Discuss only the most relevant segments from the general environment, and explain how they impact the industry and/or the firm
3. How attractive is the industry and to whom? (Porter's 5 forces)
4. Does the company possess any core competencies?
5. What is the strategy of the firm? (business and/or corporate level)
6. Discuss the performance of the firm and any other outcomes (use multiple measures, if applicable)
7. What are the main alternatives and what are the pros and cons of each?
8. What is your recommendation?
Problem Recognition:
-Symptoms: * Weak fundamentals in a Highly Competitive industry *
External Environment:
Political/legal
-Future development of global PV market largely hinged on government initiatives and renewable support schemes - EEG (Erneuerbare-Energien-Gesetz) – Germany’s Renewable Energy Law - FIT (Feed-in Tariff) – standard offer contract advanced renewable tariff or renewable energy payments in Spain, Japan, Canada, & China - United States programs for enacting incentives and stimulus programs for renewable energy
Economic segment
Technological
Product Innovation
Global segment
Porters 5 Forces Model of Competition:
-Bargaining Power of Suppliers HIGH - Suppliers’ product are differentiated (Specialized equipment manfact. to make solar components. ex. Furnaces, Sawing machines, printing and laminators.
- Supplier’s product are important to buyers’ product
-Supplier’ Product have few substitute (Silicon, glass, substrates, metels, and cabels)
-Threat of Vertical integration from silicon producers/ specialized suppliers of PV cells -Supplier industry is dominated by the top 10 producers. 55.3% as of 2008
-Bargaining Power of Buyers -- Hundreds of PV manufacturers.
-Several potential customers. - Consumer electronics, automotive, and industrial product
-Threats of New Entrants -Low Barriers -Low Capital Requirements -Medium-low Tech. Know How to make PV module.
+Product Warranties - Small manufacturers struggle to sell large-scale projects b/c req. for 25+ years product performance warranties. -Vertical-Integration by the suppliers of PV )project developers)
-Threat of Substitutes
No threat of Substitute for the Photovoltaic Cell (PV) Industry
-Intensity of Rivalry amongst Competitors
- plenty of competition.
-established players such as sharp and sanyo having powerful brands
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