2/21/2016
Org Policy & Strategy

JA Solar Holdings Co, a publically traded company, competes in the energy industry and specializes in the manufacturing and sale of solar sell products. They primarily sell their product through sales personnel and provide business to business distribution of their products and overall they create modules which turn sunlight into usable forms of electricity.
Their competitors include Hanwha Q Cells Co, JinkoSolar Holding Co, Trina Solar Ltd, and a newer entrant, Vivint Solar Inc. In the past, efforts to move the world towards solar energy have faced a series of challenges but seem to differ in priority between societies in the developing world. Countries that are known to be more economically deprived have focused on the use of fossil fuels because of their reliability and ease of use. In areas like the U.S., people have been hesitant to adopt solar power cells because of how expensive installation costs were in years past. Often time’s people fail to have a futuristic mind set to see the added benefits and money saving opportunities that you get from installing solar cell panels around your home. However with recent tax incentives and major efforts to make solar cell products more accessible and affordable for households, more and more people have begun to adopt the technology. In China, efforts to move into renewable energy solutions like solar power have increased dramatically and many of the world’s largest solar cell manufacturers can be found in China including JA Solar Holdings Co and many of its major competitors.
In both the present and the foreseeable future, new solar converting technology is being created by leaders in the industry to not only make more durable solar panels but to make the existing ones which are almost always silicon based, to be much better at converting and storing as much electric energy during a single day. Due to change in climate and sun exposure, areas who receive little sun exposure throughout the day or throughout the year, have little incentive to adopt solar energy as they are currently made to store energy is such small increments. Redesigning the way current solar panels look and are perceived by the public is an expensive investment that companies should also take in the years to come.
The future has to be focused on having more energy producing materials and a greater public awareness to show the innovations made to make the technology more accessible to ordinary people. Overcoming the stereotypes that have put people off of adopting new solar energy solutions will prove to be the greatest hurdle the industry makes if basic consumers remain a primary target market. Educating consumers who cannot see the value in the lengthy technical terms that the companies boast about is also something that both emerging and established businesses need to address. Overall the solar industry has made great strides to integrate commercial solar products into the market at affordable prices for everyone, but some companies find selling business-to-business more reasonable.

Appendixes
Porters 5 forces:
Threat of New Entry- The solar cell industry is very costly to manufacture and sell in the market, materials are expensive to produce and installation specialists are required for delivery as well as in developing the technology. Many of the leaders in the industry are found in Eastern Asia and most of these companies, even the lesser known ones, boast hundreds of millions of dollars in sales so the economies of scale very much exist. Barriers to entry can be found in the cost advantages established by producing the technology in large quantities and most notably in large government and corporate contracts are currently dominated by existing businesses. Those larger corporations like JA Solar Holdings Co also have extensive R&D departments that constantly separate their companies from one another at points in time; more specifically JA Solar Holdings Co claims to be 6-12 months ahead of its competitors from its constantly expanding product development research (Welcome).
Supplier Power- Currently there seems to be an environment of high competition among suppliers which could lower prices to the producers and the larger corporations can get cheaper materials which can be sold at lower and affordable prices. The materials and technology requirements are mostly identical for the larger companies so because the service they provide is unique in terms of how difficult it is to copy, there is a uniqueness of service.
Threat of substitutes- In the established solar cell business, substitutes for renewable energy of this kind is fossil fuels or other forms of renewable energy which are perceived to be less costly to the consumer. The abundance of availability of fossil fuels makes them the primary choice for many consumers and without a vision for the benefits in the future; gaining new customers is a difficult task. Although in terms of substitutes in the same industry, switching costs are normally on the higher end which helps secure customer loyalty through lengthy contracts and long product lifecycles.
Buyer Power- Overall buyers have a limited amount of information on the industry and will take the marketing information on money saving opportunities without much skepticism. There is also a growing number of corporations and wealthier customers who want to help the environment, take advantage of tax breaks, and other reasons making the buyer’s power decrease as the industry continues to grow.
Competitive Rivalry- Due to a rapidly growing industry in emerging markets around the world, competition would also grow between companies. Brand names are respected and recognized in the marketplace, which makes some companies more desired than others based on success rate over time. Private R&D programs also set competitors apart as well as patent applications which put roadblocks up for both rivals and new entrants in the market. Contracts acquired by companies also limit the available options for gaining more market share as companies are controlling their buyers through legal agreements and a lack of customer’s scientific knowledge (This).

Strengths
• Contracts and installed systems last for more than 15 years on average so customer relationship and visual marketing are almost always guaranteed to successful product lines (Trejdify)
• Growing political incentives and tax benefits are bringing more people than before who can now afford t adopt the new technology.
• Attempts to sell products at lower costs than traditional utilities are attracting customer to the industry in less privileged neighborhoods
• Government and large corporate contracts are on the rise as popularity and a strong image are being associated with smarter, safer energy solutions like solar powered panels
• Currently companies with lower labor or material costs such as China cannot have an advantage over American manufactures based on the development expertise required.
Weaknesses
• Large enough economies of scale are still in the future so currently new entrants will not be profitable and even existing companies face financial difficulties
• Regional preferences such as areas with a lot of snow do not normally desire solar panel technology, and areas where sunlight is not a regular occurrence because current technology has difficulty storing a large amount of electrical energy
• Some people don’t like how solar panels look on their roof or might not be educated enough to even consider installing one
• Prices for installing solar panels are still a costly expense and fossil fuels such as the gas you put in your car are at record lows making it unlikely for people to invest in alternative forms of energy
Opportunities
• The effect of fossil fuel emissions is becoming more damaging to the environment so buying electric cars that utilize solar panels on the vehicle could be a possible solution
• Companies may want to make deals with governments to install solar panels in local communities who are economically challenged
• Industry leaders may work together to make more affordable opportunities for consumers to get the most innovative technology instead of increasing rivalry between one another
• Large corporate investments in solar technology can further the efforts made to eliminate oil and gas lobbyists in the political system and make sure powerful companies on both ends of the energy spectrum have an equal voice in the marketplace
Threats
• An obvious threat to the whole industry is if fossil fuels continue to go down in price which will make solar energy the more costly option and seem impractical to many potential customers.
• Violent weather conditions damage solar panels and the look of them is almost identical across the industry
• No one company stands out in the consumers’ minds and aside from corporations who buy the technology, brands and reputation are almost non-existent in emerging markets

Political Factors – Currently major political forces have pushed benefits and tax incentives to buy energy alternatives such as solar powered technology in recent years. However it is possible regulations and lobbyists of major Gas and Oil corporations push the public interest away from new solar alternatives.
Economic Factors – There is an increased desire to conserve the environment and make healthy alternatives to lifestyle most notably in overpopulated and polluted areas like China. European countries like Germany are very conscience to environmental policies and may want to adopt this technology faster than more western areas like the U.S. which focus solely on the cost benefits.
Social Factors- People often associate solar panels with innovation and a wealthier standard of living so there is some prestige to buying this technology. However through word-of-mouth and the skepticism of the public towards drastic change, the feeling of energy alternatives is they are too expensive and not yet at the point in their development where everybody should start to invest in them.
Technological Factor- As the technology gets cheaper, more accessible, more easily installed and understood sales will increase at a more rapid rate. However as vehicles become better equipped to emit as little gas as possible and houses become more energy conscience, people could perhaps be less likely to purchase new solar technology.

Sources
This technology may be the future of solar energy. (n.d.). Retrieved February 21, 2016, from https://www.washingtonpost.com/news/energy-environment/wp/2016/01/15/this-technology-may-be-the-future-of-solar-energy/
Trejdify Top Stories: SolarCity SWOT analysis. (n.d.). Retrieved February 21, 2016, from http://blog.trejdify.com/2013/04/solarcity-swot-analysis.html
Welcome to Market Realist. (n.d.). Retrieved February 21, 2016, from http://marketrealist.com/2015/02/archimedes-used-solar-power-destroy-enemy-ships/

All financial information for excel sheet provided by
JA Solar Holdings Co ADR ADR. Hanwha Q CELLS Co Ltd ADR JinkoSolar Holding Co Ltd ADR Trina Solar Ltd ADR (n.d.). Retrieved February 21, 2016, from http://financials.morningstar.com/ratios/r.html?t=JASO