Homework Question on Industry Lifecycle of Solar City
- Industry lifecycle
- External analysis (PASTEL) This is from our industry paper maybe its help you:
- Technological: Rive said SolarCity expects to close its acquisition of Silevo at month’s end and is in talks with the state of New York on a site for a new manufacturing plant. Fremont, Calif.-based solar module designer Silevo says it has developed solar-cell technology with high efficiency at a low cost. The two companies agreed to build a factory to turn out solar panels with an annual production capacity of 1 gigawatt. https://global.factiva.com/ga/default.aspx. Below is from our industry paper:
- Technological – firm must stay up-to-date on changes in the solar industry.
- Ecological – consumers more interested in green technology to reduce pollution and save energy costs. o Political – 30% Investment Tax Credit (ITC), and 50% bonus depreciation and accelerated MACRS depreciation for business owners.
Homework Answer on Industry Lifecycle of Solar City
Solar City has been in the industry for almost a decade; it was started back in 2006. The objective of the company was to provide solar energy for various consumers ranging from households to organizations, and it has achieved this since it is currently the largest solar energy provider in the United States (“Solar Energy Company – Top Solar Energy Companies | Solar City,” 2015).
Its market entry achievements come when over 500 firms that pose a serious threat of competition characterize the industry. As an infant company in the energy production industry, the company used a lot of capital in an effort to produce highly engineered photovoltaic solar panels so that it could attract consumers in the industry.
Solar City is fast growing since it is still in its growth stage. Since its establishment in 2006, the solar firm has enjoyed tremendous growth to become a giant business in the solar industry. This has also seen increased employment and entry of more firms in the industry. However, the main reasons for the significant growth were the increased demand for green energy that could promote environmental sustainability and high costs of other energy sources such as electricity and fossil fuels.