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Strategy and Competition - Case Study Example

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This company develops other products and modules that covert sunlight into electricity for its user’s i.e. solar power systems, wafers, ingots and solar modules…
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Strategy and Competition
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Download file to see previous pages In 2008, the company recorded revenue of $ 705 million which is far better when compared to 2004’s $9.7 million (Ivey, 2010, p.8). This was attributed to the support that several authorities within the world have given which promoted the execution of the PV technology. Canadian Solar Company has been experiencing losses over the past few years though its revenues have grown by more than 135 percent over the years (Ivey, 2010, p.8). These loses have been attributed to the high competition around the world which have contributed to a decrease in the company’s market share (Ivey, 2010, p.9). The management under the leadership of Dr. Qu is faced with the mandate of turning the losses into profits amid the high international competition and economic crisis by formulating and executing a viable profit plan.
No business can operate in a vacuum. Each and every business requires an environment to operate in. After a thorough analysis, the external environment of Canadian solar company consist of the political environment, the technological environment, the social environment, the economical environment, competitors in the industry and the industry itself.
According to Porter’s five forces model, Industry encompasses the competitors, the suppliers, the consumers or the customers, technology available and the restrictions available for entry and exit in the industry by firms.
The market consists of potential customers who include the domestic users and commercial users. Canadian Solar incorporation produces a wide variety of products such as the industrial and automotive and consumer products (Ivey, 2010, p.6) to suffice the customer’s needs.
The various authorities in the different countries have greatly promoted and encouraged production of and the technology of the PV cells. Most of the countries across the universe in 2008 and 2009 provided incentives for the development of the technology e.g. China and Canada (Ivey, 2010, p.7). Government ...Download file to see next pagesRead More
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