Canadian Solar Essay

2453 Words Jun 1st, 2012 10 Pages
Midterm Case Analysis

Problem Statement
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.
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PV module start-ups compete on more tailored projects, build customer relationships and differentiate themselves on a technological basis. Whereas the rest have low-cost Chinese production base.
Canadian solar considers itself to have an integrated strategy of low cost and Western management and expertise.A more thorough competitor analysis can be find in appendix 2 .
Internal Analysis
One of the first main strength of Canadian Solar is their CEO, Qu and his management team with strong technological know-how and execution. With his entrepreneurship skills and proactive mindset , Qu and his team seized the opportunity in developing solar modules for residential purposes. Secondly Canadian Solar expanded internationally very quickly benefiting the growth in markets such as Germany, Spain and China and served the increase in demand. Next, their secured supply chain based on inverted vertical integration strategy allows them to control each components' supply and adjust to any changes in demand and be independent from the capital investment of having equal capacity of each components .Moreover due to this integration Canadian Solar will benefit of lower manufacturing cost in the future and better operations and inventory control. The company also have three products catering very distinct use thus serving more customers through a unique sales channel. They have most of their

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