Strategic Management Case Study Example | Topics and Well Written Essays - 4500 words

Strategic Management - Case Study Example Inaugurated in 1999, the company’s 16 years of existence has proved remarkably beneficial in the global energy mix, crafting ultra-modern ideas that have contributed to resolving present day energy needs such as supply reliability, fuel cost volatility and overall conserving the earths scarce natural resources and fossil fuels with its exclusive cadmium telluride (CdTe) film technology, successfully achieving the undermost leveled cost of electricity (LCOE) in the entire industry. They also extraordinarily lowered manufacturing costs to the bare minimum i.e. less than a dollar per watt, another record breaker, and a new goal limit set for capital efficiency. (Citation, year) This success, although seen to only further excel, faced new rivalries in 2011, hence leading to the gradual decline of their electric empire in the solar module industry. Specializing in the production of crystal silicon (c-Si), these emergent companies such as Trina, Yingli and Suntech raced to not only reach but overcome these newly set standards, rapidly reducing overall manufacturing costs and increasing output. In 2013, Suntech replaced First Solar acclaiming the number one position of modules worldwide. Several strategic issues had surfaced due to which First Solar led to its downfall. Of the two major reasons, the first is that these new entrants began selling crystalline-silicon solar panels for less than a dollar, creating a price clash. Secondly, the silicon solar panels proved more efficient than the thin-filmed cadmium-telluride solar panels hence consumers preferred the newer products over theirs as they were getting better quality and reliability for the same price. Although a major part of their profits were accumulated from their solar power plants and installation, these low budgeted and better quality Chinese panels forced