Please complete answers the questions below highlighted in red for the SWOT, PESTEL and PORTER analysis. The company is Canadian Solar. I need this completed by Wednesday, December 4 at 12:00 noon Washington DC in the United States.
Strengths
1.Canadian Solar Inc. was built on a very solid brand portfolio. This brand portfolio has given the Company a solid reputation in the marketplace to introduce and generate new solar products. (Shah, 2017). Consequently, a superb performance from marketing new products has gained the Company’s trust and loyalty among the customers. As a result, trust and loyalty are two of the Company’s most vital strengths.
What is about Canadian Solar product’s give them an advantage over those of their competitors?
2. Canadian Solar Inc. does not experience blockchain supply challenges. The value of adopting blockchain technology for the Company has the potential to connect different ledgers and data points while maintaining data integrity among multiple participants. (Marr, 2018). Accordingly, the properties of transparency and immutability of blockchain technology is useful for eliminating fraud in the supply chain and maintaining the integrity of the system. The Company’s supply chain is efficient, which reduces extra costs and dramatically increases revenue. Moreover, the Company’s blockchain process strengthens and guarantees secure transactions, relationships with other suppliers and other supply chain, partners.
How does this translate into an advantage over their competitors?
3. Although Canadian Solar Inc. has a strong brand portfolio, the Company’s brand is not fully advertised. Despite having a large market, the Company needs to develop a more prominent strategy to promote more products.
Based on what? Are their competitors promoting their products more actively? Show examples.
4. The Company has a bad reputation associated with environmental conservation.
Provide example.
5. Canadian Solar Inc. also faces high attrition among workers in some parts of the organization. Additionally, this high attrition rate has enhanced spending compared to the Company’s competitors. (Nappinnai, 2013). As an effort to sustain their position in
society and the market, the Company should hire and retain qualified employees.
What is their rate relative to the rest of the industry?
6. Canadian Solar Inc. is experiencing a lack of cash flow, which has led to unnecessary borrowing. Purchasing property as oppose to renting, will help the Company with the cash flow issues and allow them additional funds to allocate towards the introduction of new products, technology and improved operations.
Example of how this situation is impacting them?
7. Compared to First Solar, JinkoSolar, SunPower, Canadian Solar Inc. has not invested in Research and Development (R&D) in over two years. Moreover, the organization still relies heavily on past research. Further, the Company is not growing at a steady pace in R&D compared to their competitors.
Data/Examples to illustrate?
Opportunities
8. As a result of the new environmental policies to eliminate air, water, and greenhouse gas emissions, more countries such as Germany and China are shifting to a renewable source of energy and product. (Bordon et.al, 2017). Accordingly, fossil fuels will become obsolete in the near future. Therefore, an investment in these new renewable energy sources and products will create an opportunity for Canadian Solar Inc. to increase their marketplace activity at fifty percent or higher.
Example or data to illustrate?
9. Canadian Solar Inc.’s shipping costs have decreased significantly and contributed to a lower cost in transportation. These costs decreases have allowed the Company to increase their profit margin, therefore allowing customers product purchasing options at a lower rate.
Is this an opportunity or a strength? Data to illustrate?
10. A major development in current technology advancements will help the Company create new strategies and ideas for new products. Thus, this is also an opportunity to retain a loyal customer base and the potential to solicit new customers.
What kinds of advancements?
11. The increasing rate in e-commerce has shown that people are shopping more online New online markets will provide Canadian Solar Inc. an opportunity to increase profits. (Hajli, 2013).
Threats
12. The rise of raw materials can be a significant threat that affects the whole organization, which will increase the cost of products. A change in how customers purchase goods physically as oppose to buying online could also be a threat.
Raw materials costs?
13. The Company’s business outlook is primarily based on management’s current views and estimates about market conditions, production capacity, order book, and global economic environment. However, management’s views and estimates are subject to change without notice and could be a threat to the uncertainty on final customer demand, solar project construction, and sale schedules. (Canadian Solar, 2018).
Are there any trends in the market which could threaten the company’s future prospects?
PESTEL
Political
14. The political factors determine how the Company can grow and profit. Political stability exists in all countries where Canadian Solar Inc. operates and is conducive to the environment. Canadian Solar’s future profitability is contingent upon their market activities in specific countries. The Company is currently operating in a semiconductor-specialized industry in certain countries which has created exposure to political risks. These semiconductor operations include silicon based products with impurities that are less than conductors that contain aluminum or copper. Therefore, the Company should closely examine the risks associated with semiconductors activities in order to minimize conflicts with government officials and competitors.
You bring in a number of factors here. How/Why are they important to CS? Which ones are the most important?
15. Canadian Solar Inc. should also examine the political factors associated with anti-trust laws, level of corruption, taxation, and pricing regulation. These factors can politically impact their productivity such as manufacturing, availability, distribution, sales, and specifically market investments. (Canadian Solar Inc. Form 20-F, 2018).
What political factors have the greatest impact on CS’s business?
Economic
16.Canadian Solar Inc.’s growth can be measured via growth domestic product (GDP). The lower the rate of growth of a country, the lower the rate of growth of the Company. As the industry market activities fluctuate, the viability of conventional and other renewable energy sources such as decreases or increases in the prices of oil, gas and other fuels, ultimately impacts the economic behavior of the Company.
Data to show how renewable energy equipment sales are dependent on GDP?
17. The exchange rate of currency may largely affect the profitability of the Company. For example, some countries with lower exchange rates may decline to buy the companies products mainly if the power plant source is located in the US or in European countries where the currency rate is high. Also impacted economically are places with a high level of unemployment where more people will be willing to work for the Company for a lower wage.
Where are exchange rates having the biggest impact on CS? Which countries? Where is unemployment having an impact?
Social
18. Social factors such as culture, beliefs, attitudes, and values contribute to the social behavior of Canadian Solar Inc. These factors are relative to the vast population of the Company’s surroundings within the community. The social behaviors are vital to the operations and marketing aspect of Canadian Solar Inc. The ability to understand the lifestyles, beliefs, education levels would help the Company develop more innovative product and marketing ideas that would lead to new successful business ventures.
Which lifestyles, beliefs, etc. have the most impact on CS’s prospects? Why?
19.The demographics of the population, such as age and gender, impact social behavior. These social behaviors determine whether certain products should be marketed in these areas. The class distribution, such as high, middle, and lower-class populations, are also social considerations. For instance, Canadian Solar Inc. would be unable to promote premium products to a class of citizens where the majority are lower-class and living within a certain poverty level.
Be specific. Is there a market (or markets) where the demographics (or demographic changes) impact CS’s results significantly? Show how. If there isn’t a market where that is the case, then you don’t need to flag it as a factor?
20. The difference in education levels is also social determinants. Canadian Solar Inc. can influence the kind of messages that are generated when marketing their products. Messages should be designed to capture the attention of existing and potential consumers and business interests. Clear and concise messages sent should be well received and influential across the various educational sectors within the population, including the marketplace.
Technological
21.At the rate in which technology innovation is growing, Canadian Solar Inc. has to stay ahead or at least equal to the competition. As technology continues to advance, many competitors are willing to invest in innovation as a process to strategize and participate with other growing companies. Although the Company has state-of-the-art research centers, they can continue to make a difference with future R&D investments that contribute to the solar industry.
What tech developments are having the biggest impact on the company?
Environmental
22.Canadian Solar Inc.’s operations involve using, handling, generating, storing, processing, transporting, and disposing of hazardous materials. If the operations involvement in the treatment of these materials are not carefully managed, there is the potential for explosions, fires, and spills that will cause substantial harm to a community, the environment and business. (Canadian Solar, Inc. Form 20-F, 2018). Additionally, the situations as mentioned earlier and weather conditions in a particular location may hinder the transport of products. Thus, raw material suppliers may also have difficulties in supplying their products, thus creating fewer sales. (Ming, 2015). Canadian Solar Inc. can work closely with the Environmental Protection Agency (EPA) and their local hazmat emergency response units to help generate and implement procedures to help safeguard the Company and the community from potential hazardous materials calamities. Some of the following practices should be by executed:
· Store chemical products in areas where they cannot be contaminated
· Use spill-proof kits
· Use the appropriate shelves to store containers
· Use suitable carts to transport chemicals
· Prepare an emergency response plan of action and work closely with the EPA to enforce this plan (EPA.gov, 2018)
How do environmental regulations impact the company’s prospects? Are there particular requirements that have a larger impact? Are there any changes on the horizon that could have a material effect on CS’s sales potential?
Legal
23. As one of the leading competitors in the solar industry, Canadian Solar Inc. is required to obey numerous laws and regulations in the markets, most importantly, with regards to their office locations. Energy regulations, export and import restrictions, tax laws and regulations, environmental regulations, labor laws, and other government requirements, approvals, permits, and licenses, are among these laws and regulations that are provided in Canadidan Solar Inc.’s Form 20-F, (2018).
Which particular laws/regulations have the biggest impact on CS? Why? How?
PORTER Analysis
24. These five PORTER analysis elements will discuss how Canadian Solar Inc. equally competes with its competitors, such as First Solar, JinkoSolar, and SunPower. The analysis includes the following:
New entrants
25. New companies and old companies that introduce new strategies in the market alter procedures daily. These new entrants become new competitors and new competitors, develop new and improved ideas. Thus, Canadian Solar Inc. should focus on creating and introducing new projects and services in order to manage and maintain its status as one of the top contenders in the industry. Additionally, to outperform new entrants, the Company should discover and develop a systematic process with new knowledge that can be used to formulate new products and improve the ones that exist. (Canadian Solar, 2018).
Is there a high likelihood that new entrants will be a factor or a low one? Why?
Bargaining power of the supplier
26.Canadian Solar Inc. has amended agreements in place with numerous suppliers to adjust the purchase price of purchase orders based on current market prices. The Company’s bargaining agreement with suppliers is consistent with previous industry practices, which include advance payment arrangements. These supplier agreements may affect the cost of Canadian Solar Inc. products. If the suppliers have a lower rate, the products will have a lower selling price, which will positively affect consumers’ buying behaviors. Since Canadian Solar Inc. is established as a top-tier global supplier, other suppliers may increase their production while conducting business with the Company, thus increasing their selling rates. (Canadian Solar, 2018).
Do CS’s have a lot of bargaining power or just a little? Why?
Bargaining power of the buyer
27.In most cases, buyers want to buy the best products from Canadian Solar Inc. at the least possible costs, which is reflected in the Company’s profitability statement. However, if the Company introduces new products and services, customers may not demand a discount. Consequently, customers can request a discount on goods that have been in the market for a long time. (Canadian Solar, 2018).
Do CS’s buyers have a lot of bargaining power or a little? Why?
Threats of substitutes
28. If a new product that has been introduced in the market is beneficial to the customer’s needs, the old products will not be purchased by the customers. Companies like First Solar, JinkoSolar, and SunPower are always working on new products that may act as substitutes for Canadian Solar Inc. products. Canadian Solar Inc. should be service-oriented and create or up-grade products to stay competitive. (Canadian Solar, 2018).
Are there other forms of generating electricity, besides solar, that could be a substitute for CS’s products?
Rivalry among existing competitors
29.If the rivalry with companies such as First Solar, JinkoSolar, and SunPower increases, prices in products will decrease and significantly affect the profitability of the Company. Canadian Solar Inc. can grow a suitable differentiation from the competitors or form an alliance with the competitors to increase the price of products. (Canadian Solar, 2018).
Is rivalry high or low? What forms does this rivalry take? How much does it impact CS’s prospects?
