Suncare is a new start up business which we are looking forward to start into solar energy sector.

Its a hypothetical company at the moment but has great plans to achieve in near future. Suncare is a first generation business which will cater to many needs of solar module related products under one roof. Company will start up with its operations firstly in Gujarat and then it will branch out into new markets as it is based in Surat. Company has a strong technical knowledge and many offering for its customers and also it will diversify from solar energy to other renewable energy sources in due course of time.

Company Introduction
At Suncare we are a company that has a vision of using renewable technology for generating Power in India for both commercial and residential purpose. We focus mainly on manufacturing and marketing of PV and CPV and other tracking system. Our products are commercialized at both national and international level. We at Suncare are the first Indian company that develops CPV systems. Being a Solar Panel Provider in India, we work with a mission of making affordable solar systems and solar panel in India. We work hard so that out Mother earth can have a better and green future. From our research, we have brought products from laboratory that is advanced. At Suncare we have complete solutions for our products. We have team of experts that are educated from well known education institutes and have excellent experience of solar industry. Our strong relationship with research institutes across the globe helps us in developing efficient solar panels. Initially company provides following products to its customers: 1. PV Module- Flat-plate photovoltaic collectors contain an array of individual photovoltaic cells, connected in a series/parallel circuit, and encapsulated within a sandwich structure with the front surface being glass or plastic. Solar energy falls directly upon the photovoltaic cell front surface and produces a small direct current voltage, providing electrical energy to a load. Unlike thermal collectors however, the backside of the panel is not insulated. Photovoltaic panels need to loose as much heat as possible to the atmosphere to optimize their performance. Like flat-plate photovoltaic collectors absorb both energy coming directly from the sun's disc, and diffuse and reflected energy coming from other directions. In general, flat-plate photovoltaic panels are mounted in a fixed position and tilted toward the south to optimize noontime and daily energy production. However, it is common to see flat-plate photovoltaic panels mounted on mechanisms that track the sun about one tilted axis, thereby increasing the daily output of the panels..

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2. CPV Module-Its very emerging technology in all solar technology. The simple technology is to concentrate solar light through optics on small area of silicon material and produce electricity. These technologies must be used tracking systems to move panel to perpendicular of sun. 3. Solar tracker- Tracking system track the module of pv or cpv as per direction of the sun. Tracker is very useful to increase the efficiency of the whole systems. There is two type of tracking in usage-single axis and double axis tracking systems. For pv we can use both tracking systems but for cpv we must use double axis tracking systems. Accuracy of the tracking is most important part 4. Solar drivers- these are the main backbone of any solar system which helps the power to be converted into any desired form for its usage. For domestic usage the drivers will be working accordingly and for commercial the voltage level and the current level will be decided as per the usage. 5. Batteries- Solar systems do not provides power for all the time. Its operation cycle is only of few hours, thus storing the power is very much required to fully utilize the capacity of the solar system. Thus batteries specifically designed to store the power generated by the solar panels are developed by Suncare for its customers. Few services provided by Suncare are: 1. Stand Alone PV system- For the domestic usage of solar system for energy consumption, Suncare provides its standalone PV solution which can be operated on-grid as well as off-grid. This standalone system provides usage in domestic as well as commercial setups. 2. Solar irrigation solutions- Suncare provides solar irrigation solutions where the pumps are directly connected to the solar systems and these pumps are used for irrigating the agricultural fields which are not directly connected to any grid. 3. Solar power plant- PV modules clubbed together to generate a good amount of power to run a small industry is setup using the powerplant solution provided by Suncare. This system is generally used to support a small industry or a group of residence or a society. 4. Installation, maintenance & Consultation- Suncare directly install all its PV module system and also provides timely maintenance for the same. Suncare also provides consultation regarding all types of renewable energy solutions to its customers.

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Solar Industry- An overview

India is in a state of perennial energy shortage with a demand-supply gap of almost 12% of the total energy demand. This trend is significant in the electricity segment that is heavily dependent on coal and other non-renewable sources of energy. Renewable energy (RE) sources contribute only 7.7% of the total installed power capacity of 167,077 MW in India. Among the RE sources, wind power is the dominating component while solar energy currently contributes to less than 0.1% (on-grid+ off-grid) of the total installed capacity.

Exhibit 1 Calculation of Solar Potential in India The solar energy potential in India is immense due to its convenient location near the Equator. India receives nearly 3000 hours of sunshine every year, which is equivalent to 5000 trillion kWh of energy. As shown in Exhibit 1, India can generate over 1,900 billion units of solar power annually, which is enough to service the entire annual power demand even in 2030 (estimates). Exhibit 2 shows that Rajasthan and Gujarat are the regions with maximum solar energy potential. This, coupled with the availability of barren land, increases the feasibility of solar energy systems in these regions. Considering Indias solar potential, the government has rolled out various policies and subsidy schemes to encourage growth of the Solar Industry, which is expected to experience exponential growth in the coming years.

Exhibit 2 Irradiance Map of India

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Key Success Factors for Solar Industries Globally 1. Adapting to change to Government policies. Government subsidies, which determine the level of demand for the modules that solar companies sell, drove growth before the slump. Now, in the aftermath of the downturn, government policy remains the single most important factor sustaining the industry. In Canada and Europe subsidies primarily take the form of feed-in tariffsfor every kilowatt hour of electricity fed into the grid, the provider receives a taxpayer-funded subsidy that is substantially higher than the market price. In the US, rather than providing a feed-in tariff, the government gives a direct cash grant or a tax credit for 30% of the solar power installation cost. Asian countries, including China and India, have approved subsidies and forecasters expect them to increase as governments attempt to meet ambitious renewable energy targets. For the moment though, Asia is mainly a location for production and export rather than a source of domestic demand for solar power. 2. Slashing Production cost As the industry emerges from the slump, the primary differentiator for solar companies is the individual modules cost per watt ratio (Rs/W), according to Pike Research. A number of factors contribute to ever lower ratios, chief among them are moving manufacturing operations to low-cost countries such as China, Taiwan, Malaysia and the Philippines, using low-cost materials (or driving down prices through negotiations with suppliers), engineering breakthroughs, and the advantages of scale. 3. Innovating in commodity market In addition to lowering production costs, solar companies are putting a heavy emphasis on R&D. First Solar doubled its R&D spend from 2008 to 2009, from US$33.5 million to US$78.2 million, bringing R&D spend to a ratio of 3.8% of sales. Suntech has research partnerships with the University of New South Wales and Swinburne University in Australia. And many more tie-ups for the knowledge and research support have been made for getting an edge over others. 4. Scaling up Big players can spend more on R&D, negotiate more favorable terms with suppliers, and drive cost reductions through economies of scale. Customers also gravitate to larger companies. Especially for large commercial and utility-scale projects, end customers increasingly prefer one-stop shopping, the Pike report says. They prefer companies that provide project development, engineering, permitting services, financing and other services instead of just modules.

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5. Going for Utility Level game Large, utility-scale solar PV power plants began to mushroom in 2008 and their number and capacities are expanding rapidly; consequently, the share of PV accounted for by larger-scale projects will increase substantially. Since 2008, approximately 2,000 PV power plants with output above 200 kilowatt hours (kWh) were built, of which more than 1,000 solar parks had output capacity above 1 MWh. The scale of building in 2008 represented a breakthrough for large solar PV plants, as they accounted for more than half the total capacity of PV plants installed worldwide, according to Mr Lenardics data. Utility-scale plant projects are on the drawing board or in development throughout Europe, China, India, Japan and the United States, and theyre growing not only in number but in scale. The largest plant in Asia is been setup in Gujarat, India with 200MW power capacity

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External Analysis
Porters five forces model Rivalry Suncare competes with a number of firms in the growing market for solar energy. Factors favoring the growth of the solar power industry include: the rising price and falling supply of competing nonrenewable energy sources, climate change, politics related to national security/dependence on foreign oil, increasing private-sector solar investment, and growing public-sector support of solar energy. These factors all contribute to the likelihood of further growth in the solar energy industry, which for Suncare, could mean more intense rivalry. However, it is important to note that given the poor economic climate and high capital investment, demand for solar energy has increased at a slower rate than projected. As a result, there is an excess supply of panels. Given Suncares innovative technology with Rs/watt advantage, the company will most likely have less trouble than other companies finding demand for its products. Another factor contributing to the intense rivalry in the industry is the lack of product differentiation. Solar energy products have different efficiency ratings and cost structures, but it is easy to figure out the amount of energy per Rupee made in an investment, which makes the industry focused on providing low-cost, high-output solar power products rather than on cultural or superficial aspects of the product. As the market matures, other factors such as product lifecycle and performance may become more significant as more products have been tested in the marketplace. A factor that makes rivalry in the solar energy market especially intense is the diversity of competitors. Suncare operates in the industry for thin film Photovoltaic cells, but this market is a subset of the renewable energy market. As renewable energy is considerably more expensive than alternatives, the industry is driven by a focus on costs per watt of electricity. Suncare is not only competing with a few thin film manufacturers, but also with many other forms of renewable energy. To be competitive, Suncare has to be ahead of the curve on introducing new, cheaper ways to harness solar power and must keep its manufacturing costs lower than the competition. Substitutes and Complements The thin-film solar panel industry has several prominent substitutes including silicone based photovoltaic cells and other types of photovoltaic cells; other types of renewable energy including wind, biofuel, fuel cell, geothermal, and micro-hydroelectric power; and nonrenewable energy products (components of the Indian electricity market, which is thoroughly dominated by coal, natural gas, and nuclear power). Suncare will deliver the cheapest Rs/watt solar panels, but given the abundance of alternative types of energy, the threat of substitutes is strong.
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Complementary technology for solar panels includes solar water heating systems that can be installed jointly with solar panels, mostly on residential rooftop solar power plants.. Also, inverters and drivers, which are required to turn raw energy into useable energy, will become stronger complements. Buyers Power Buyer power in the industry for solar energy is relatively strong. In the solar sector, the products are primarily differentiated on the basis of its cost/watt efficiency, which enables buyers to be very discriminating. In addition, there are minimal switching costs and no network economies locking customers to a particular brand. Also, there are relatively few buyers compared to the number of suppliers. Finally, since the sale of solar panels is dependent on subsidies, reduced growth in or the reduction, elimination or expiration of government subsidies, economic incentives and other support for on-grid solar electricity applications could reduce demand for solar modules, leading to a reduction in net sales and adversely impact operating results. Overall, buyer power is strong, which is currently not a threat for Suncare because it aims at providing the cheapest Rs/watt thin film panels. Suppliers power Supplier power in the thin film industry is also strong. Suncare faces intense competition from manufacturers of crystalline silicon solar modules, thin film solar modules and solar thermal and concentrated photovoltaic systems. If global supply exceeds global demand, it could lead to a reduction in the average selling price for photovoltaic modules. Also, the company manufactures its solar cells using a cadmium telluride compound, which is mainly produced as a by-product of copper refining and its supply is therefore dependent upon demand for copper. Currently, Suncare purchases these raw materials from a limited number of suppliers. If Suncares current suppliers or any future suppliers are unable to perform under its contracts or purchase orders, operations could be interrupted or impaired. In addition, because suppliers must undergo a lengthy qualification process, Suncare may be unable to replace a lost supplier in a timely manner and on commercially reasonable terms. Suncares supply of cadmium telluride could also be limited if any current suppliers or any future suppliers is unable to acquire an adequate supply of tellurium in a timely manner or at commercially reasonable prices. If competitors begin to use or increase their demand for cadmium telluride, supply could be reduced and prices could increase. If current suppliers or any future suppliers cannot obtain sufficient tellurium, Suncare could substantially increase prices or be unable to perform under its contracts. Suncare may be unable to pass increases in the cost of raw materials through to customers because customer contracts do not adjust for raw material price increases and are generally for a longer term than raw material supply contracts. A reduction in production could result in an inability to

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meet commitments under Long Term Supply Contracts, all of which would have an adverse impact on financial results. Entry Barriers There are several barriers to entry in the solar power industry. One of the main barriers to entry is the vast amount of research and development required to be able to manufacture a competitive technology at a competitive price. Given the state of the economy and the vast number of solar power ventures already in progress, there is a limited amount of capital going towards new investments in solar technology. However, recent government and cultural interest in the green technology and renewable energy make the solar sector attractive to new firms. MNRE scheme, there are several tax cuts, subsidies and other measures intended to increase investment in renewable energy products While a large amount of this money will most likely go to firms already operating in the solar sector, it is possible that the incentives will be strong enough for other companies to enter the market, especially for firms that already have infrastructures in place to produce similar technologies. PEST Analysis Political Factor The future will be shaped not only by competitive economic growth but also by potentially disruptive scarcities and the consequences of human induced climate change. Political responses to this reality have included new policies, legislature, and tax incentives promoting the growth of and investment in renewable energy in order to reduce green house gas emissions. Tax credits and incentives strengthen the ability of renewable energy companies to be successful by cutting the costs of operations Economic Factors Macro economic factors that impact the renewable energy industry are the overall state of the economy, economic growth, and stability. The economic recession of 2008 was detrimental to the growth of the renewable energies industry. Indicators of the overall macroeconomic condition and economic functioning include GDP, unemployment rates, and price indices. Solar Factors Social factors of the external environment include cultural aspects such as growing environmental awareness, population growth, and the benefits of renewable energy. There are two overall forces in the social environment that are influencing the growth of the renewable energy industry: increasing environmental concerns and increasing energy demand. Growing environmental awareness which is defined as the increasing knowledge and understanding of the
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finite nature of many of the worlds resources, the negative impact and contribution to climate change from burning fossil fuels and deforestation, and the impact of global warming on bio diversity, and the stability of delicate ecosystems, have lead to increasing environmental concerns. Technological Factors Technological factors in the external environment include the application of inventions and ideas, research and development activity, and the rate of technological change. According to the Solar Energy Industries Association solar energy technology is rapidly developing (Solar Energy Industries Association, 2011). Emerging technology in the industry includes applying different materials for thin-film PV applications, solar cooling systems, incorporating PV into building materials for roofing, windows and even painted surfaces (Solar Energy Industries Association, 2011). In addition to emerging technology, future technology being aggressively pursued by research and development include thermal and electrical storage systems, solar hybrid lighting, improved manufacturing techniques, nanotechnology, and improving concentrating solar power systems (Solar Energy Industries Association, 2011). Technological developments and investments catalyze the advancement of technology, strengthen the ability of energy consumers to harness solar energy, and improve manufacturing equipment and techniques that enable low cost production. The above factors and analysis of the external environment for the solar industry indicates that though the sectors seems to be attractive with all the support from the government and policies there are still many hurdles which needs to be dealt with proper care for the overall success of the company.

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Internal Analysis
S.W.O.T Analysis Strengths Cost-per-Watt Advantage: Suncare company will try to breakeven its cost to watt ratio same as conventional energy sources and will provide cheapest renewable energy to its customers Efficient production line, which will help Suncare to produce cost effectively as well as provide a competitive edge to the company Long Term Supply Contracts: Predictable sales make planning easy and also demand predictable. Constant innovation and research will help company to always come up with most innovative technology in the industry giving it a positive hand Suncare will try to tie up with government agencies for their supplies which will again provide a continuous flow of material out of company

Weaknesses Raw Materials Suppliers: Most of the materials come from a few suppliers, so any interruptions in the supply-chain could have disastrous consequences for Suncares production line. Dependency on silicon and cadmium telluride which are toxic in nature and government may ban usage of these material in domestic equipments New entrant thus market knowhow is very less and also the trends and policies of the business is new for the company.

Opportunities Growth of Photovoltaic Industry: The photovoltaic industry is thought to be largely untapped. Suncare can take benefit of this opportunity and tap the untapped market. Backward integration with time can make the product more effective and will provide a competitive pricing for the company Initial entry is with only solar products, but with time this can be diversified to other non renewable energy as well which is a supplementary industry for Suncare Government policies like Jawaharlal Nehru solar mission motivates new entrant to take up this business and perform well

Threats Fast changing technology is outdating the current technology very fast in the solar industry, thus heavy initial investment is at risk if the product is outdated very soon

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High competition with the existing giants is also a potential threat for Suncare, as it is a new entrant and big fish will try to eat away its business Volatile prices of raw material are another factor which is a threat for the company. The silicon price, which is main raw material for the company is not much stable and is very much dependent on the demand from the IT industry thus it again posses a great threat to the operation of the company.

Thus after assessing all the internal factors, we can say that the sector seems to be a potential segment to enter with new opportunities to grow with a few hurdles.

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Proposed strategies for Suncare

Entry strategy There are three possible entry strategies for Suncare to enter into the solar market: 1. Trading of equipments of any existing company- this strategy will require minimal investment at the beginning and also low risk or no risk at all. Entering through this channel will help company to know about the technical knowhow about the product as well as the current scenario or norms of the sector thus providing an insight of the industry. With the possible benefits it has, it also possesses some risk like the over powering of the supplier and complete dependency on the supplier. another possible risk is the taking up of the set market by the supplier due to lack of knowledge. Thus we can say that the strategy has low risk initially but will not help company to grow as per its vision 2. Capital Investment and manufacturing- this strategy gives full control over the operation and working of the company in the initial stage and also provides a benefit of innovating and direct competition. This strategy also helps company to work cost effectively and set prices accordingly giving it a competitive edge over others. This strategy also possesses many risks which are financial in nature. After heavy capital investment, if the company does not flourishes then the company will incur huge losses again the company is new to this segment thus the market insights are not available which will again hold back the growth of the company. Thus this strategy is also not much feasible at the moment. 3. Entry through merger- This strategy tells the company to enter into the market by merging with an existing player in the market and growing the company with the support of each other. The existing company will be well aware about the market insights and can provide necessary information to flourish and we can provide necessary resources. Another benefit of this strategy is that the risk is divided among the partners and the effect of risk is lowered. Thus making this strategy best suitable for the given scenario. Pricing Strategy Price of the product is the most critical factor for success of any company in this sector, providing low cost solar energy is the main motto of the company and working with the same principle Suncare will price its product to a lower end initially for market acceptance and also to increase the usage of the products by the customers

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This pricing strategy could only be achieved by cost effective manufacturing and also innovative technology in manufacturing and processing the solar panels. Thus this is the only way the company will achieve its objective Market Strategy The company will initially focus on two major markets to gain knowledge and expertise and also these markets have the lowest risk in terms of acceptance and financial risks thus entering into this segment is advisable: 1. Domestic standalone system- Company should focus on providing small domestic stand alone systems to the residential area which could be affordable by the people. These systems are low priced and require little knowledge about the system which makes it easy for the company to work and grow. Company should provide both on-grids as well as offgrid standalone systems. 2. Solar irrigation- Company should provide solar systems for irrigating farms which are not connected with grid at all. This area will have maximum acceptance and also low price will encourage the sales of this product into rural area. After properly establishing these markets, company should try and focus on other segments as well like PV power plants and Industrial-commercial projects. Diversification Strategy Company is initially aiming at entering in to the solar segment only and that too with mergers. After initial establishment and a proper growth, company should try and diversify into new businesses which are related to its core business that is renewable energy. Company from solar energy will then move to wind energy, bio fuel, geothermal etc thus it will help company to have a diversified businesses. Diversification not only in segments but also internally, i.e. company will start as a manufacturing form but then should diversify into private utility firm to power providing firm. Thus such diversification will require forward as well as backward integration of business.

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Conclusion
Suncare is looking to enter into a new growing sector which is new to developing country like India. The sector has many opportunities as well as great support from the government which makes the segment more attractive to entering firm. The internal and external environment analysis suggested that there is great scope of growth in the sector but with it, there are many hurdles or obstacles which also need to be dealt with to have an overall sustainable growth in the market. Suncare with all the assessments and analysis comes up with innovative ideas and strategies which will help the company to take best advantage of the opportunity as well as handling hurdles well. Low pricing, domestic system manufacturing, diversification are some of the policies which will help company to achieve its objective.

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References http://tejas.iimb.ac.in/articles/75.php http://www.analysisgroup.com/uploadedFiles/Practice_Areas/SI_Strategies_New_Busine ss.pdf http://www.cba.pitt.edu/careers/explore/cs-strategic-planning-and-busines-developmentoverview.pdf http://righton-nobull.com/blog/2008/11/hello-world/ http://www.plantservices.com/assets/wp_downloads/pdf/SAP_110321.pdf http://www.firstsolar.com/About-Us/Projects http://www.sahajsolar.com/technologies.htm http://economics-files.pomona.edu/jlikens/seniorseminars/oasis/reports/FSLR.pdf http://studenttheses.cbs.dk/bitstream/handle/10417/468/fredrik_pedersen_og_emil_mo_sa nder%C3%B8d.pdf?sequence=1

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