The Five Forces Model of Competition

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The competitive pressure in the industry was very fierce. Competition existed between many countries in 2008. Solar PV growth witnessed an increase of 5.6 gigawatts up to 14.73 gigawatts in 2008. Geographically, total installed capacity was split: 65 % in Europe, 15 % in Japan, 8 % in the United States. The strongest market was Spain which counted for half of the installations because of implementing the Renewable Energy Feed-in Tariff which stands for ( REFT or FIT). This program guaranteed electricity rates for certain renewable projects. In 2008, Spain witnesses a vast rate of growth in its ability to dominate the PV market. The Spanish government implemented the 500MW for its installation for the next couple of years. But Spain was expected to witness a drop in its growth by 2009. The second competitor in the industry was Germany. It covered 26.7 % of PV installations and it was the first country to introduce the Renewable Energy Feed-in Tariff into the industry. Moreover, the United States and South Korea, Italy, and Japan were also among the strong competitors. The United States installations were 6 % , South Korea was 5 %,Italy was 4.9 %, and Japan was 4 %. The Five Forces Model of Competition: 1. Competitive pressure steaming from supplier bargaining power: On the supply side of the PV manufacturer there were raw materials suppliers for goods such as silicon, glass, substrates, metal and cables. Also, there were specialized equipments for making the solar
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