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Current Situation Analysis:

Review current Strategy ( Cost, Diff, Focus). Mission, Vision, Goals.


Internal analysis Resources ( Tangible and Intangible) and Organizational
capabilities, S & W , Core Competencies, Competitive Advantage (CA) +
Sustainable CA, Key Success Factors , Life Cycle, Value Chain, and Current
financial Status;
External analysis -PEST, Porter 5 forces Industry analysis/attractiveness,
competition, O & T.

Issues , Alternatives and Analysis:

Identify Issues, both strategic and operational.


Identify strategic alternatives to solve issue and problem, at least 3 to 4.
Status Quo also.
Prepare analysis of alternatives using , PROS and CONS, SWOT .
Financial Analysis: revenue and cost proforma, payback, return. Prepare for
all three alternatives.

Decision criteria, Recommendation and Implementation:

Decision criteria- establish bases to pick best alternative and back up.
Recommendation of strategy type and rationale, mission, vision, goals.
Financial Justification.
Implementation for strategic recommendation and deal with issues and
concerns for operational issues.

Implementation Plan:

Organize by Management, Marketing, Operations, Finance, Balanced


Scorecard.
Discuss above in terms of short term, medium and long term action plans
Individually address action plan in terms of changes or requirements on:
Structure , Systems, Skills, Infrastructure.
Staffing, Style( Culture/Values), Personnel,
Specific goals and strategy for each area with specific details.

-Consolidation
-Fully vertically integrate across the whole value chain.
Needs to centralize it manufacturing approach to attain mass economies of scale
Short Term:

Medium Term:
Long Term:
-Buyers (high): Buyers are developers, utilities or large-scale financiers who are able to
demand low prices and high-volume discounts;
-Suppliers (medium-low): Suppliers were ostensibly gaining power when silicon prices
were increasing. However, it seems that many suppliers of silicon and raw materials are
losing their bargaining power as cell and module producers become larger and look for new
ways to innovate such as using lower grades of silicon from the metallurgical industry;
Substitutes are very strong since solar PV is the alternative
itself. Even within the world of renewables, solar PV competes against wind, geothermal,
biomass and hydro electricity for investments;
-low): Barriers to entry are likely on the rise as cell and
module producers become larger. However, historically, the technology and initial capital
have not been major barriers to entry; and
Upon looking at market shares, no one competitor has an
overwhelming share. Furthermore, there is tremendous diversity of the competitive set
both in the technologies (i.e. First Solars thin-film vs. Canadian Solars poly/mono),
geographies (i.e. China, Japan, the United States and Germany) and the structural features
(i.e. Sharp and Sanyo are part of major consumer electronics giants while many competitors
focus solely on solar). As players become larger and gain access to more capital, it is likely
that some consolidation will occur.
Weakness:
policies
-like
dian Solar might lose the technological battle (e.g. thin-film vs. poly/mono)
Recommendation
Primary (strategic):

Development of commercial-scale solar farms (plants) globally

Once these solar projects are up and running, Canadian Solar should sell them to
independent power producers who then hold them for the long term

Secondary (operational):
Consolidate the plants in China in order to attain mass economies of
scale by centralizing the manufacturing processes

less crowded than the manufacturing

Canadian Solar has made a big foray into building solar power
plants, a high-margin business, to offset the price fluctuations in the
panel market.

expand its business in building commercial-scale solar farms including dozens in


Canada instead of just selling panels to other companies.
once these solar projects are up and running, Canadian Solar should sell them to
independent power producers who then hold them for the long term.
business transformation from a module manufacturer, into a one-stop shopping
provider of solar power solutions with a global reach,
This part of the business is a lot less crowded than the manufacturing space, he said,
and will underpin the companys growth in the future.

Its operations in Canada, where provincial incentives help it sell solar


projects for as much as twice what it gets in Asia, set the company apart
from Chinese panel makers,

-Basically build power plants in addition to selling panels

Our success is being mainly driven by our total solutions business, which
develops and sells solar farms, Qu said on the call. We are making major
progress in our business transformation from a module manufacturer into a onestop shop and provider of solar power solutions
Long term: -Transform business from a module manufacturer into a one-stop shop and provider of
solar power solutions with a global reach
-Build solar energy projects, such as utility-scale plants, in Canada and China to take
advantage of their new respective FIT programs
-Exploit position as a Canadian Manufacturer, so will benefit greatly from the Canadian
incentive program from green energy, which gives preferential rates to domestic producers
-In 2009, the Chinese government announced major subsidies for utility-scale solar
projects.
Financial:
Evaluate revenue and cost performance and ensure gross profits are above industry average
Marketing: Develop innovative solar power technologies to stay ahead of market
Operations : Ensure that the grade of raw materials is up to standards
Decrease average cost per unit via efficient manufacturing
Audit of internal processes

Management
Provide regular training to staff on new solar technology systems, procedures, and products.

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