SolarWorld AG is an international photovoltaic energy company that manages all stages of production starting by the raw material silicon for solar wafers to the entire solar module ‒ including its own research and development. Through an international distribution network, SolarWorld supplies customers all over the world with solar modules and complete systems. SolarWorld is through its subsidiary company Solarparc AG also involved in the construction of several large-scale solar power stations and operates with approximately 2,600 employees two production sites - one in Germany and one in the United States. The company is based in Germany. The by far biggest part of the entire sales is generated in Germany (49.5%) followed by the United States (23%) and the rest of Europa (19 %).
The objective of this assignment is a complete and comprehensive analysis of SolarWorld AG and its surroundings. In order to get a complete picture of the current situation the company has to face, it is necessary to analyse in a first step, the Macro- as well as a Micro environment of the company. For this a macro- as well as a Microanalysis is performed. In a second step the by the analysis recovered data and information are collected and interpreted in a SWOT (Strength, Weaknesses, Opportunities, Threat) analysis. Finally, the SWOT is carried out to create the basis for a future strategy.
For that work no primary data was collected, the entire work is based on secondary data. The necessary information for the analyses that were previously only scattered published or accessible will be combined and analysed by the author. The sources of secondary data are, for example, the annual report of the company.
Table of Contents
1 Introduction
1.1 Brief introduction to SolarWorld
1.2 The stock price performance of SolarWorld
1.3 News and latest situation of SolarWorld
2 Problem definition
3 Objectives
4 Methodology
5 Macro Analysis
5.1 The PEST(EL) Analysis
5.1.1 Political Factors
5.1.2 Economic Factors
5.1.3 Environmental Factors
5.1.4 Technological Factors
5.1.5 Missing Factors
6 Micro Analysis
6.1 Porters Five Forces
6.1.1 The risk of entry by potential competitors
6.1.2 The intensity of rivalry among established companies within an industry
6.1.3 The bargaining power of buyers
6.1.4 The bargaining power of suppliers
6.1.5 The closeness of substitutes to an industry’s products
7 SWOT Analysis
7.1 Internal analysis
7.1.1 Strengths
7.1.2 Weaknesses
7.2 External analysis
7.2.1 Opportunities
7.2.2 Threats
7.3 Turning SWOT Analysis into a Strategic Plan
8 Results and Interpretation
A Performance exchange rate dollar / euro
B Global annual PV market scenarios until 2017
C Module Manufacturing Cost by Value Chain
Objectives and Topics
The primary objective of this assignment is to conduct a comprehensive marketing analysis of SolarWorld AG, evaluating its current market position amidst a challenging industry climate to provide a foundation for future strategic development.
- Strategic analysis of the solar energy industry environment using PESTEL.
- Evaluation of industry competition through Porter’s Five Forces framework.
- Internal and external assessment of the company via SWOT analysis.
- Development of strategic recommendations based on identified strengths, weaknesses, opportunities, and threats.
- Review of recent financial restructuring and market positioning.
Excerpt from the book
6.1.2 The intensity of rivalry among established companies within an industry
The industry SolarWorld compete within is a fragmented industry, since the solar cell products are hard to diversify, and this makes the competition concentrated on efficiency, technology development and price. SolarWorld compete on an international area, with their largest market share within Europe, with sales in Germany of around 50%. The industry has experienced significant growth in the past years, however, recently the times has been tougher. In the past years, the financial crisis, the cheap Chinese production, the overcapacity build up in 2010 and 2011 along with severely curtailed subsidies in major feed-in tariff markets and low profit margins have led many photovoltaic producers into bankruptcy and forced institutional investors and corporate investors from the market. In Germany alone, more than 35% of the manufacturers of solar cells and solar modules have gone bankrupt in the period from January 2012 to January 2013. The whole solar industry is in a consolidation process and is not expected to abate until at least 2014.
The industry in general is under great pressure in reducing cost of its production, since the technology at this point is very expensive and do not generate much profit without subsidies in different forms. The demand of the solar energy industry’s products has been stagnated or easily decreases. That process will continue till the end of 2014 before the demand within the industry will increase in 2015 to something between 36.8 MW and 62.6 MW (see appendix B “Global annual PV market scenarios until 2017”).
Summary of Chapters
Introduction: Provides an overview of SolarWorld AG, its history, stock performance, and the recent financial and operational news affecting the company.
Problem definition: Outlines the difficult current situation of the company, characterized by declining turnover and the need for a strategic turnaround.
Objectives: States the goal of performing a comprehensive analysis of SolarWorld AG to serve as a basis for strategic planning.
Methodology: Describes the approach of using secondary data to conduct macro and micro-environmental analyses, culminating in a SWOT assessment.
Macro Analysis: Examines the external environment through the PESTEL framework, covering political, economic, environmental, and technological factors.
Micro Analysis: Analyzes the industry's attractiveness and competitive dynamics using Porter’s Five Forces.
SWOT Analysis: Evaluates the company's internal strengths and weaknesses against external opportunities and threats, leading to a strategic plan.
Results and Interpretation: Summarizes the key findings of the analysis and suggests the conditions under which the company might survive the current industry consolidation.
Keywords
SolarWorld AG, Photovoltaic, Marketing Analysis, PESTEL, Porter's Five Forces, SWOT Analysis, Renewable Energy, EEG, Solar Industry, Market Consolidation, Strategic Planning, Stock Performance, Debt-equity swap, Production Costs, Sustainability.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on a comprehensive marketing analysis of SolarWorld AG to understand its current competitive position and develop strategic directions for the future.
What are the primary thematic areas covered?
The themes include the macroeconomic environment of the solar industry, micro-competitive forces, and a specific SWOT evaluation of SolarWorld AG.
What is the main research objective?
The objective is to analyze the company's surroundings and internal capabilities to create a foundation for a strategic plan that helps bring the company back on track.
Which scientific methodology is applied?
The author uses secondary data to perform a PESTEL analysis, Porter’s Five Forces, and a SWOT analysis.
What topics are discussed in the main section?
The main section covers the PESTEL macro-environment, micro-analysis of industry forces, and an internal/external SWOT analysis followed by strategic implications.
Which keywords characterize this work?
Key terms include SolarWorld AG, Photovoltaic, PESTEL, Porter's Five Forces, SWOT Analysis, and market consolidation.
How does the recent financial situation affect SolarWorld AG?
The company faced significant debt and losses in 2012, leading to a major financial restructuring, including a share capital reduction and a debt-equity swap.
What role does the 'asset deal' with Robert Bosch GmbH play?
It allows SolarWorld AG to expand its production capacity in cell and module manufacturing, complementing its technological portfolio and aiming for cost reductions.
Why is the euro/dollar exchange rate critical for SolarWorld?
Since the euro has been rising against the dollar, SolarWorld's products become more expensive for international customers, worsening global sales opportunities.
- Quote paper
- Martin Pruschkowski (Author), 2013, Analysis of the Marketing Position of Solarworld AG, Munich, GRIN Verlag, https://www.grin.com/document/432954
