Market Growth of Solar Panels - Case Study Example

UNTRY/РRОDUСT BRIЕF Table of Contents Introduction 3 Situation Analysis 3 1.Business Environment 3 A.Political 3 B.Economic 4 C.Social 4 D.Technology 4 E.Environmental 5 F.Legal 5 2.Market Analysis 5 3.Competitive Analysis 6 4.Organizational Analysis 6 5.SWOT Analysis 7 A.Strengths 7 B.Weaknesses 7 C.Opportunities 8 D.Threats 8 Conclusion 8 References 9 Introduction The Australian energy market is going through a rapid change in its structure, which is now controlled by the technology factor, the preferences of customers and the change in the price. Ten years back coal and gas were the sources of energy in Australia, but now renewable has taken over the market. Due to the renewable, the residents are consuming lesser electricity and the prices of electricity and gas are declined remarkably. For commercial and household purposes, renewable finance providers and suppliers are creating different designs of solar panels on different price range. The cost of renewable energy is falling day by day, there will be a time when there would be an end to the grids. For such future prospects, companies who are designing solar panels must think upon on their business models [Mat14]. The market opportunity identified in this report is renewable i.e. Solar Panels and now the situation analysis of this opportunity will be studied. Situation Analysis The situation analysis will cover the following five topics: 1. Business Environment The business environment for this opportunity can be easily discussed by using the analysis of PESTLE. Each of the elements of this micro and macro analysis is described as below: A. Political With the assistance of the Australian government and the decline in the solar panel prices, the industry of renewable has been developed. The sales and installation of solar panels were 8,000 PV systems in the year 2007 and in the year 2013, it grew to more than one million systems [Cli14]. According to Australian PV Institute (2014), 11% of the population of Australia are using solar power to get electricity. B. Economic The economic advantage of this opportunity is actually its high demand by the households. The marginal costs of solar panels are close to zero and there is only the installation cost, which has to be paid in the start just. Unlike gas and electricity, there is no hassle of monthly billing [Mat14]. C. Social Even if renewable energy solar technology attracts people for lower costs in the long run, still there are people who are unwilling to buy this product. According to the psychological and economic evidence, there are some individuals who believe not to sacrifice for a short period of time and do not think about financial aspects in the long run. Such people are more prone to think about their income to be spent on retirement product plans [Mat14]. D. Technology The changes and the arrival in the technology of solar is driving the economy of Australia on a fast pace. The growth in this industry may lead to decrease the rate of unemployment and to pull the electricity prices down. This growth can be more prosperous and flourishing, if the updated technology is exercised [AUS14]. The following graph shows the increase of employment due to the advent of this technology: Fig 1: Solar employment [AUS14]. E. Environmental There are chances of more environment friendly activities in the upcoming years. According to Climate Commission (2014), by the end of year 2050, 30% of the electricty needs in Australia will be imparted by the solar PV. F. Legal The products of solar companies must be included in the list of CEC and their product description must be according to the standards provided by the CEC. The basic four standards which have to be considered while making and designing a product are: EN/IEC 61625, EN/IEC 61730-1, EN/IEC 61646 and -2 Class A [Bes15]. 2. Market Analysis The market of solar panels has been increased from the year 2008 and is the best alternative of the electricity via grids [Chr14]. The market share of this opportunity has been increased from 200 MW in the year 2009 to 3000 MW in the year 2014. Fig 2: Market Growth of Solar Panels [AUS14]. There are three customer segments of this opportunity. They are companies, households and commercial sectors. In every sector, there is a high need and requirement of solar products. The finance providers and energy providers of renewable are working hard to make different funding models according to the preferences and suitability of the three sectors. The factor of price is also significant in the design and selling of the products. There are some retailers who are controlling the market, but as soon as the installation of solar panels will increase, the price of these products will decline eventually [Mat14]. 3. Competitive Analysis The major competitors for this opportunity in Australia are; Solar Power Australia, Orca Solar Lighting, Green Light Solar, Orion Solar, Australian Solar Light, Black Frog Solar Lighting, Rainbow Power Company, Solar Bollard Lighting and Sealite. The competitive advantage of these companies is described as below: A. Solar Power Australia: It provides solution for renewable energy to the industries, residents and business [Sol15]. B. Orca Solar Lighting: It offers a reliable assorted variety of grid supply and off-grid supply applications Australia wide [Orc15]. C. Green Light Solar: The competitive edge of this company is their reliability, credibility and quality of services. They are working in Srilanka and they have a rich list of partners associated with them [Gre15]. D. Orion Solar: They can provide light where it was impossible to offer [Ori15]. E. Australian Solar Light: Their products are guaranteed and are CEC approved. They consider meter category and roof type at the time of selling products [Aus15]. F. Black Frog Solar Lighting: Its products are made up of stainless steel of grade 316 marine [Bla15]. G. Rainbow Power Company: They provide solar panel grids on the reasonable rates [Rai15]. H. Solar Bollard Lighting: They are using the technology of Solar Bollard Light from the year 2003 [Sol151]. I. Sealite: It produces the items in Australia and it is the worldwide manufacturer of marine products [Sea15]. 4. Organizational Analysis For this market opportunity, I recommend the Solar Power Company, Australia. The recommendation has been done on the basis of the following reasons: A. It caters to three types of customers, which are business, households and industries. B. They can provide their services even in the remote areas where others cannot. C. They are also operating the integrators and suppliers such as Solar Online Australia. D. They can design solutions on the customized needs and they offer powerhouse specialists as well. E. Due to their immense stockholdings, there products are always ready to sell and their prices are comparatively lower. F. They also provide products to the mining sectors and to the industries too. The products include: skid mounted solar power system, re-locatable solar lighting systems and solar powered communications trailers. G. It is a big company with a division named as Electric Vehicle Division. The company has a wide product range. The competitive advantages of Solar Power Company are: A. Products are customized and are tailored according to the preferences and level of investment of the customers. B. They are approved of REC (Renewable Energy Certificate). C. They are working across the Australia and have a professional team at work. 5. SWOT Analysis The major strengths, weaknesses, opportunities and threats discovered in the situation analysis are summarized as below: A. Strengths Solar products are cheaper than electricity. They are for every type of customers i.e. domestic, commercial and industrial clients. They are varied in different shape, size and price. They are verified from CEC and REC in order to assure their usability and reliability. B. Weaknesses It is difficult to convince some people on the point of investing huge in the start and to relax after that for a long time. Psychological issues are there to remove. As it is a new technology trend, it needs time to grow and to be a part of the life of people. C. Opportunities It acts as an alternative of electricity. Similar product i.e. electricity is more expensive in the market. This market opportunity has loyal customers. D. Threats Since the arrival of this opportunity, there has been an immense advertisement campaigns in the field of electricity. Other investment plans like retirement plan may stimulate people from investing on other things rather than on solar panels. Conclusion Renewable are one of the latest technologies, Australia has these days. Since its extra-ordinary and remarkable features, it is growing and getting prominence day by day. Several projects are being considered by the Australian government regarding solar products in its various areas. Due to this market opportunity, employment and savings are seen to be increased. This market opportunity is best offered by Solar Power Company and the reason for this recommendation is the competitive edge of this company. This company has an ability to serve and to give quality services to the domestic, commercial and industrial sectors. References Mat14: , (Grudnoff. M & Denniss. R, 2014), Cli14: , (Climate Commission, 2014), AUS14: , (Australian Solar Market, 2014), Bes15: , (Best Practice Regulation of The Australian Solar Industry, 2015), Chr14: , (Pash, 2014), Sol15: , (Solar Power Australia, 2015), Orc15: , (Orca Solar Lighting, 2015), Gre15: , (Green Light Solar, 2015), Ori15: , (Orion Solar, 2015), Aus15: , (Australian Solar Light, 2015), Bla15: , (Black Frog Solar, 2015), Rai15: , (Rainbow Power Company, 2015), Sol151: , (Solar Bollard Lighting, 2015), Sea15: , (Sealite, 2015), Read More