REC Solar Strategizing on a Solar Coastal Case Analysis
Introduction
REC is the leading solar corporation in the industry of solar products. The Headquarters of the company are in the Singapore. (Bhattacharya, 2019)The Chief Executive officer of the REC solar corporation is Steve O'Neil. The market of the solar products continuously sees the crisis and fluctuations of prices and raw materials from which most of the companies of solar products suffer. The CEO of the REC solar and its management manage these problems with their strong marketing strategies and dedication to achieve the competitive advantage in the industry of Solar. The major competitors of the REC solar are Solar World, Sun Edison and Suniva field for the bankruptcy. The major issues which REC face were unpredictable demand, fall in the price of solar panels, huge competition and continuous changing in material prices. The REC is more focused on the technology through which the company increase the productivity of products in this competitive market.
Business Analysis
For understanding the business situation of the REC Solar, the business analysis is important in which we explain the qualitative strategic tools which affect the operations of the business in the Business Analysis we analyze the internal and external factors of the REC Solar Corporation.
Problem Statement
The prime problem of the REC solar is that: Is CEO and management team of REC solar protect the corporation from the current crisis?
In the current situation, when REC faces the crisis, what would be their business strategy?
SWOT Analysis
This is the strategic qualitative analysis and is very useful for the corporation of the REC solar in which we understand the weaknesses and threats of the company and according to it we design the marketing strategy which increases the value of the corporation.
Strengths
A strong product portfolio is the major strength of the corporation. The research and development of the REC solar is stronger than compare it with other competitors. The designing of items and innovation in that product is also high. The products of the REC Solar are more reliable than others that's the reason of high demand of solar panels. The REC Solar Corporation provides the high-quality products at reasonable prices.
Weaknesses
The weaknesses of the corporation are the aggressive competition in the industry of Solar. Changing in prices of material is also the major weakness of the REC solar corporation.
Opportunities
The great opportunity for the REC Solar is that the increase in the demand of products also increases the worth and market value of the REC Solar corporation. The company can invest in multiple projects and also increase the business portfolio, which enhances the revenue for the business and also reduce the risk of return.
Threats
The macro factors like fluctuation in prices and inflation rate are the prime threat for the company.
Because of the inflation and unemployment, the purchasing power of the customers affected negatively through which the corporation of Solar can face the declining phase. Impulsive demand, fall in the price of solar panels, huge competition and continuous changing in measurable prices are also the threats for the REC Solar corporation.
PESTEL Analysis
The pestle analysis is also important for understanding the factors which affect the operations of the REC Solar Corporation.
Political factors
Political factors affect the REC Solar Corporation because they are doing business in international level. The political forces can be work positive for the REC Solar the government support, trade agreements of international level are the beneficial for corporation.
Economic Factors
The economic factors all affect the business of the REC Solar Corporation in a positive and negative manner. Currently, the increase in inflation, unemployment and tax rates affect negatively to the company because the purchasing power of the customer is depends on these all factors and the solar products became more expensive.
Social Factors
The social factors of the company has positive effect on the business. Because socially, the services of the REC Solar Corporation are high in demand and most of the customers are satisfied with the products of REC. The Corporation adapts the culture of every country where they expand the business and this thing increases the market value of the REC Solar Corporation.
Technological factors
The REC Solar Corporation has the strong research and development departments. With the advance technology of the company, the customers of Singapore especially want to purchase products from REC Solar. The technology of the company is also on the advance level, which helps the corporation to expand its business in huge business portfolio.
Environmental Factors
The company understands the environmental factors of every market and then starts its operation in the new market. It is favorable for the REC Solar Corporation. The employees of the corporation manage the factors which can be mitigated. The management team of the corporation is proactive in environmental factors.
Legal Factors
The legal factors are also in favor with the REC Solar Corporation because the company follows all the legal factors of health and safety of employees, government policies of workplace and the laws of employment with the safety measures of customers. The intellectual property of the company is most valuable, and the corporation invests a lot of money on standards and benchmarks of the company, which are highly secure.
Value Chain Analysis
For understanding the REC Solar Corporation's competitive advantage and the value of corporation, the value chain analysis is used to understand the company's products and services value.
The value chain analysis of the REC Solar has five steps.
- Inbound logistics
- REC Solar Operations
- Outbound logistics
- Marketing and sales of REC Solar Corporation
- Services of REC Solar
Inbound Logistics
REC Solar corporation's inbound logistics are convoluted in storage of solar panels, raw materials and energy storage system for the selling purpose. Company purchase the raw material from many countries of the world. The company knows the value of loyal suppliers and keeps its relations with them.
REC Solar Operations
The main operations of the REC Solar Corporation are the manufacturing of multi crystalline cells, REC peak energy different products from these two and the components of electricity. These all products are helpful for the manufacturing of final product.
Outbound Logistics
After the manufacturing of solar panels, the next step for the company is outbound logistics, which means now the company is moving towards the distribution of panels in markets. The company distributes the solar panels and other manufactured products in the parent's market country and also in other countries where the company operates its operations.
Marketing and Sales of REC Solar
The marketing and sales channel of the REC Solar Corporation is also strong as the company market the products through the promotions and advertisements. The company sells the panels through personal and direct selling.
Services of REC Solar
The customers are satisfied with the services of the REC Solar Corporation. In the services of the REC Solar Corporation, they provide the low costs of the products which maintain the customer base strong and also satisfy the customers for a long time.....
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