“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 particular the ones connected with marketing. Following this strategy the company might consider reducing the sales-network efforts and focus on other priorities like R&D and the improvement of the quality of the service. This scenario might also help reduce the pressure on the utilities companies and therefore reduce competition, even though the residential customer are at the moment the greatest source of revenues for SolarCity.
Another viable strategy could be investing in the upstream. As underlined in …show more content…
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