The case method is one of the most popular and pedagogically sound ways to apply the concepts learned in Strategic Management and in many other subjects.

We used some mini-cases in the discussions on current business news during the semester, but this case study is different. You are supposed to apply some of the concepts learned in the course, but you are also expected to apply your expertise to offer alternatives and make recommendations to a company that is facing major challenges.

Instructions:

This case study is not time-limited like a quiz. You can download the files and work at your own pace.

Submit by the deadline specified in Brightspace. You can change your submission as many times as you want, as long as the changes are done before the assignment folder closes in Brightspace.

Cite any sources you use. There is no need to cite the case itself.

Use the TurnitIn function to check the originality report. (There's a good tutorial here https://www.youtube.com/watch?v=xRYuhFAL5oY if you are not familiar with this function)

Teaching Purposes

This case has been designed to serve a variety of teaching purposes:

• Strategy: This case study examines eroding competitive advantage and allows the students to look at both costs and willingness to pay, in their analysis of how to respond.
• Sustainability: This case study illustrates the complexity of the energy industry, particularly PV solar power. The case presents a rich discussion as to the barriers to entry for different energy sources, the varying purchase criteria on behalf of consumers and users of energy, and the complexity in manufacturing and distributing solar power.

Optional readings:

The following readings provide relevant background information and are provided as additional, optional information to give you a better understanding of this industry and the technology behind it.

Scientific American: How does solar power work?

Clean Technica: How Do Solar Panels, Solar Cells, and Solar Energy Work?

U.S. Solar Market Insight Report: 2011 Year in Review (GTM and SEIA)

Assignment Questions

Industry attractiveness:

Define the market. In which industry does First Solar compete?

Present a Porter's Five Forces Analysis of the industry in which First Solar competes.

Of the forces listed in question 1.2, which one do you think is the most influential in this industry? Explain your answer.

Based on your answers to questions 1.1 to 1.3, is the solar industry an attractive industry? Why or why not? Be specific. (1.5 point)

Competitive Advantage:

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? List and explain in detail at least two (2) of First Solar Competitive Advantages.

Are they sustainable according to the VRIO framework? Where you can, be quantitative.

Key Challenges

Looking forward, what are two (2) of the biggest threats to First Solar's strategy? Explain each threat and how it can affect First Solar.

Recommendations

What recommendations would you make to Tymen deJong to guide First Solar? Write two (2) recommendations and explain their pros and cons.

Of the alternative listed in 4.1, what is your final recommendation? Why did you choose this recommendation as the best of the two alternatives you listed in 4.1?