Solar Energy Case Study: The Evolving Industry Of Solarcity

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4. RECOMMENDATIONS
“We have this handy fusion reactor in the sky called the sun, you don’t have to do anything, it just works. It shows up every day.” – Elon Musk, CEO Tesla Motors
Unfortunately for SolarCity, the punctuality of the sun is not going to be enough to assure the success of the company. The evolving industry of solar energy requires a fast responsive approach. For this reason at the end of the analysis it is possible propose some possible suggestions for the future developments of the company.
The only glimpses of a future strategy that we can get by the case is the intention of de-emphasize the residential customers expressed by the CEO. This strategy might help reduce the growing debt of the company and reduce the costs, in
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As denoted through the analysis one of the main issues of SolarCity is the high level of expenses. The quickest way to address the issue would be by cutting the costs. Without de-emphasize the residential customers, it would be possible abandon the focused differentiation strategy and potentiate the focused cost leadership. This strategy might be pursued by reducing the additional services and adopting a different payment method for the installation of solar system like a down payment. The downside of this alternative is potential damage in the market positioning covered by the …show more content…
One of them is the acquisition by SolarCity of the solar panel manufacturer Silevo in the attempt to grasp a new and potentially cost saving technology for the production of solar panel, and the implementation of a backward integration strategy. The acquisition lead to a deal with the State University of New York to lease lands in Buffalo on which SolarCity will build its factory. Unfortunately the investment made by SolarCity may not payback the effort, since in 2016 the prices of solar panel production went down even further what could be achieved with Silevo’s technology. In the meanwhile, in 2016, Tesla motor stepped out and announced the acquisition of SolarCity that accepted the offer. This event might completely change SolarCity’s future, as Elon Musk has already planned projects for the company and announced the launch of two new products within the end of the year. This is not the first time that Musk’s connections help SolarCity: in 2014 Space X signed a deal for the first solar bond issued by

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