Custom First Solar Company essay paper sample
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First solar is a company that deals with production of solar that aims at providing affordable solar energy to the citizens. In its first 10 years of existence, it has managed to produce and supply electricity at the cost of $1 per watt, which is the cheapest rate in the electricity industry. The company started as a start up venture backed power supplier and gradually grew to become the industry leader, having over 5,200 associates. First Solar’s accounts in 2009 showed that it its profits exceeded $640 million with its revenues amounting to $2.1 billion. The company’s success can be attributed to good management and application of cost effective technology in power production. It uses cadmium telluride thin film technology that is the cheapest way to produce electricity power. As a result, First Solar Company has acted as a market leader influencing other companies all over the world to use the same technology.
Because of its affordable power and consistency in the industry, First Solar Company was able to have a good market share. This was followed by an increase in capacity by the company so as to supply power to the growing market. As is the case in any industry, First Solar and other power companies have faced challenges in their market. This resulted to constant changes in strategies by the company as well as changing the economic outlook. This has also led to stiff competition in the industry with the other power supplying companies also trying to maintain their share in the market. In the 2009 financial year, the global financial crisis hit the power industry too causing a strain in the budgets by Western Europe’s government. Western Europe is the world’s largest market for solar energy hence the financial crisis was a big hit to First Solar Company and other power companies. This further led to an increase in competition as every company tried to maintain its operations as the banks reduced their bank equity that funded many power projects. The cdTe technology used by First Solar Company gave it a competitive edge over other companies in the same field as it had the resources to efficiently implement the technology.
To make solar energy more affordable to the market, the government introduced tariffs, which also leveled the market for all companies in the industry. The companies already in the market aimed the Feed in Tariffs at encouraging the citizens to use alternative power supplies that would lead to better prices. To increase competition and grow the market, capital subsidies were given to companies that were willing to produce alternative power. First Solar Company has to maintain its standards that mean also taking care of the environment, which provides the resources. This means that the company has to use clean sources to get power, which in this case is photovoltaic. Targets were set and penalties and fines imposed on any company that did not follow the rules. This can be termed as the portfolio approach. The hub approach can be used in First Solar Company to makes its operations more efficient and increase the knowledge and the expertise of its employees. The management installing recent technology and providing all necessary information to their employees can achieve this. Homebase approach changes the view used by many companies from reactive to proactive, which Fist Solar Company can use to improve the company’s operations. It entails providing affordable power and giving information to families that use solar energy. This will ensure all families in future have access to constant and affordable electricity and also increase the company’s customer base.