S U N P O W E R
Introduction
Sun Power
Corporation is US Corporation into the design and manufacturing of
solar panels, headquartered in California. With a revenue of $1.576
billion (2016) is one of the leading [players in the solar
industry. It was incorporated in 1985 by a Stanford professor. It
holds a diversified portfolio in residential, commercial and
utility solar energy markets. It offers the world's highest
efficiency solar panels featuring its unique technology asnd the
company holds more than 750 patents in solar technology
SWOT
Strengths
- A huge number of patents offering
it directs advantage over competitors in terms of innovation, and
efficient solar panels. Product warranty is quite high compared to
competitors showing the quality of products
- A highly skilled workforce with
employees from leading colleges including Ivy leagues.
- Sun Power Corporation also makes
huge efforts in training and motivating these employees
- Brand equity- it enjoys being one
of the global leaders in the solar industry
- a strong base of suppliers across
the globe offering string supply chain capabilities
- Strong distribution community – It
has a strong distribution network across the globe.
- Good Performance in new
markets
Weakness
- The company has not been utilizing
its brand equity to enter Asian markets with huge potentials like
India and China
- Lack of investment in R&D and
new technologies.
- An absence of breakthrough
innovation from the company. It has been essentially improving upon
it original product –Maxeon cell
- Poor Returns on investments–the
revenue has been decreasing with negative cash flow and poor ROI,
possibly due to many acquisitions in the recent past
- Poor demand forecasting and high
inventory
- Limited diversification outside
core business
Opportunities
- New environmental policies across
the globe favor a booming solar market
- Huge opportunities in India, China
and Brazil
- Free trade agreements offer new
opportunities for expansions across the globe
- Lower inflation rate enables good
credit possibilities
- Its patented technologies open up
new possibilities to compete against competitors especially in
underdeveloped markets
- Acquisition of new technology
companies and their patents. Gives opportunities for inorganic
growth and rapid technology progression
Threats
- High costs in developing
countries
- Increasing competition as many
players want to enter the booming industry
- Exposure to currency
fluctuations
- Rising raw material costs
- Too many acquisitions affecting
cash reserves( another company Sun Edison went bankrupt because of
too many acquisitions )