Essays /

Canadian Solar Essay

Essay preview

Midterm Case Analysis

Problem Statement
1.Situation
Canadian Solar which is a traded solar cell and module manufacturer has experienced recent strong growth. Despite 2009 fluctuations in the solar industry namely for PV technology, the growth has been fuelled by Government incentives programs to encourage solar PV technology. The Solar industry is now highly competitive and companies follow an industrial organizational model. This is because they all compete mainly in PV technology, and this market is hinged on Government initiatives and renewable support schemes. Also, the international markets such as Spain (FIT) and Germany ( EEG law) influenced the companies ' strategy in terms of rates changes, over supply in 2009 among others. 2.Current strategy

Canadian solar has most of its product operations in China but its revenue from Europe, thus combining its low cost of manufacturing and its Canadian expertise to compete in both lost cost and differentiated markets. Having said that’s, Canadian solar serve its customers in various countries ranging from Europe to United States by establishing sales offices in strategic countries. The Solar company also invested in a PV Research and development facility in Suzhou. Canadian Solar finally uses an inverted vertical integration model to have control and flexibility upon its required components. 3.Issue

The solar cell and module manufacturer has to decide upon the future of its international strategy. It has experienced rapid growth fueled by Government incentives to install PV technology in Germany and Spain, but due to the crisis and Spain's government new cap, demand has been declining and is expected to continue in 2009. Canadian solar wants to focus on 10 major markets in the next few years, but is a change in its international strategy is currently a wise move for Qu? External Analysis

1. General Environment
Major consumers of PV technology are Project developers, utility companies, automotive industry, industrial product companies and solar installations companies among others. There is a growing trend for Solar PV technology and it experienced its largest growth of 60.8% in 2008. Some government are continuously offering renewable support schemes to encourage solar companies to install PV technology in their ground. One major component and factor influencing PV was silicon until a shortage where companies now consider thin film modules as another source 2. Industry Environment

As said above, one very important component of the solar industry is the Government intervention in form of subsidies, incentives and renewable support schemes. All this support hindered the growth in PV, with the addition of Chinese government announcing subsidies for utility-scale solar projects. Moreover on an International note, Germany's Renewable energy law almost assured Germany to be a top player in the market and have rates which will sustain installations. Spain on the other side, experienced a very high demand due to the creation of the Feed-in Tariff, but created a backlash against the government, making Spain a threat in the industry. The PV industry is an attractive one , since according to the EPIA, the prediction...

Read more

Keywords

-500 1 1.situation 10 13 2 2.current 2008 2009 2013 23.71 3 3.issue 4 4.competitive 5 5.evaluation 500mw 55.3 6 60.8 9.4 9th abil abl abnorm absorb access accord account achiev addit address adjust administr advantag allianc allow almost also altern among analysi announc anoth anytim appendix applic appropri area around assembl asset assumpt assur attent attract august automot avail averag avoid awar b backlash bad bank bankrupt bargain base basi becom behind benefici benefit best better big book boost brand build busi buy buyer canada canadian cap capabl capac capit captur care case cash cater caus cell ceo chain chang channel characterist china chines choic class close combin comment commerci common compani compet competit competitor compon concern connect consid consum consumpt continu contribut control core corpor cost countri creat creation credit crisi criteria currenc current custom czech debt decid decis declar declin defici demand depart depend despit determin devalu develop differ differenti direct disloc distinct distribut doubt driven drop due dynam earli earn econom economi eeg effici either encourag end energi engin enough enter entrepreneurship environ epia equal especi essenti establish europ evalu exclus execut exhaust exhibit expand expans expect expected-lack expens experi experienc expertis expertise.a exploit extens extern extra extrem eye facil factor fair fastest favor feed feed-in fierc film final financ financi find firm first firstsolar fit five flexibl flow fluctuat focus follow forc form forward found franc fuel fuell furthermor futur fx gain general germani get gintech globe go goal good govern great greater green grid gross ground ground-mount grow growth guodian hand happen harder heavi help high hinder hing howev idea imag implement import incent includ incom increas independ industri influenc ingot initi innov instal instanc integr interest intern intervent invad inventori invert invest itali itc ja japan japanes keep key know know-how knowledg korea kyocera labour lack larg large-scal largest law lead leadership lend level like limit ll loan logist long loss lost low low-cost lower loyalti m main major make manag manufactur margin market maxim meanwhil mention midterm might mindset model moder modul money moreov motech mount move mover mw name narrow need net new next note obama offer offic often one ontario open oper opportun option organiz other outbound outsourc oversea oversuppli pace park part parti partner past path pattern period placement plan plant player point polic polici policy-driven popul porter portfolio posit potenti power practis predict price proactiv problem procedur proceed produc product profit program project provid public purpos pv q q-cell qu quick rais rang rank rapid rate recent recognit recommend recycl redirect refer refocus relationship reliabl remain renew repay repres republ requir research residenti resourc respond rest restrain revenu right risk rival roof rooftop rural said sale sanyo scale scenario sceptic scheme second secur see seem segment seiz serv share sharp shipment short shortag show side silicon sinc situat skill slow solar soon sourc south spain specif spot stabil start start-up state statement still strateg strategi stream strength strong subsequ subsidi success sudden suntech suppli supplier support sustain suzhou swot system tailor take tariff team technolog term therefor thin thin-film think thorough threat three thus tie time top trade trend trina turn two u.s uniqu unit up up-start upon us use util utility-scal valu various versus vertic vision wafer wait want weaken well western wherea whether whose wise work world would year ying