Essay about Individual Assignment

1696 Words Apr 24th, 2014 7 Pages
Introduction
The public’s awareness of sustainability promoted the emergency and growth of renewable energy power (e.g. solar PV generated power). Traditionally, SolarWorld US is the dominant player in solar industry in America. However, with the entry of Chinese companies, SolarWorld’s market share has been reduced to a great extent, leading a financial difficulty recently. SolarWorld US needs a strategic change to survive. Based on the SolarWorld USA case study, this report will briefly analyze the solar power industry in three perspectives, namely, industry-based view, resource-based view, and institution-based view to figure out the competitive advantages and disadvantages by comparing to its competitors. Accordingly, strategic actions
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In terms of new entrants and barriers to entry, due to the relative low entry barrier, especially in grid-connect commercial and residential solar PV market segments, other countries, such as China becomes a strong market power in recent years, stealing the market shares used to be owned by traditional solar power companies. Moreover, solar energy is a substitute for conventional power from the grid. Such energy is still the main energy used worldwide and in America due to the relative low cost. Additionally, solar is not the only source to produce green energy, diesel and wind hybrids, as substitutes, can also produce energy power. The higher costs and existence of several substitutes make solar energy only occupy 1% of the entire energy market.

Resource-Based View
Under resource-based view, firm is conceptualized as a bundle of unique recourses and capabilities. It is the resources and capabilities, as well as the way these elements being combined create the competitive advantages of the firm. Being strategically important, the recourses and capabilities should of VRIO attributes. Firstly, the resources should be value adding, or else, the resources can create no competitive advantages. In SolarWorld, a range of valuable resources and capabilities exist. The company owns advanced technology. Moreover, the vertically integrated supply chain help the company to operate within the whole value chain to enhance its value, for

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