Assignment 1-First Solar
Review the article, "First Solar" do additional research and answer these questions. You should prepare your report according to this format:
Introduction/Context (write about one page summarizing the case; include the context, that is why is this case written and what are the learning points)
Q1
A1 (your answer)
Etc.
Conclusion (write no more than one page of your conclusions and observations)
Your paper is an analysis of the situation discussed in the article. You must research, collect appropriate data and address questions with data and evidence.Use list (bullets), graphs, charts, tables, etc. to make your report more effective (a sample is on Blackboard). Be sure to use data available in the Case supplemented with additional research. Your report must be between 4 and 5 pages, 1.5 space with font TNR11, in Word document format and submitted in Blackboard assignment dropbox.
QUESTIONS:
1. Is the solar industry an attractive industry? Why or why not? Be specific. Use Exhibit 9 to calculate ROA, ROIC, and Porter's Five Force Model to respond to the question
2. From 2007-2011, First Solar was consistently more profitable than its major competitors: SunPower, Suntech, and Yingli. What are the sources of First Solar's competitive advantage? Are they sustainable? Quantify where you can.
3. Looking forward, what are the biggest threats to First Solar's strategy? What recommendations would you make to TymendeJong to guide First Solar?
Case Summary
First Solar (FS) by Neil Thompson and Jennifer Ballen - Case date: written in 2017
- Focused on Photovoltaic (PV) solar industry and the competitive evolution
FS lost its low cost advantage to Chinese competition
Governmental subsidies helped these competitors
- Discusses PV Supply Chain and how technology evolved from original (Crystalline Silicon to Thin Film) and its impact on cost of electricity production
Cost of silicon went up about 10X as solar energy used crystalline silicon
Led to thin film (First Solar was the major supplier) to drive cost down
- China became a major source by 2012 supplying 60% of PV solar panel
- Industry attractiveness leads to competitive challenges assess competitive forces and how to respond
- Use class material such as Porter's Model and Industry Attractiveness matrix to respond to questions