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Canadian Solar Inc Marketing Plan

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Running Head: PROJECT 4 1
Developing and Implementing a Marketing Plan: Canadian Solar Inc.
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PROJECT 4 2
Developing and Implementing a Marketing Plan: Canadian Solar Inc
Dr. Shawn Qu founded Canadian Solar Inc. in 2001 in Canada. The Company,
headquartered in Guelph, Ontario, operates within the solar industry. It designs, manufactures, and
sells, manufacturing, and selling solar module products that convert sunlight into electricity for
various uses (Canadian Solar Inc. , n.d.). Under Qu’s leadership, the Company has grown into one
of the largest solar solutions providers such that its annual revenue amounted to $3.39 billion in
2017. Since this Company is seeking to increase sales to other businesses in the United States, this
paper sets out to perform Porter’s five analysis to help it understand the competitive forces at play
in its industry.
Which elements have the most significant impact on the Company's success?
The element that has the most significant impact on Canadian Solar Inc.'s success is rivalry
among competitors. Even though the Company has few competitors in its industry, a majority of
these firms are very large. They include SunPower, JinkoSolar, and First Solar. These firms
massive market share implies that they will engage in competitive actions to gain a competitive
advantage and become market leaders. Even more, the industry has high fixed costs, thus making
competitors push for full capacities. They can, therefore, reduce their prices when there is slack in
demand. Furthermore, the production of products within the solar industry requires large
increments in production capacities. Companies are hence prone to overproduction and sometimes
have to reduce their prices so that their products sell. On the other hand, there are incredibly high
exit barriers in the solar because of high government laws and regulations, as well as the high
capital cost of investment required to operate. This makes firms reluctant to exit and thus continue
to produce even at low profits.

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Running Head: PROJECT 4 1 Developing and Implementing a Marketing Plan: Canadian Solar Inc. Student Professor Course Date PROJECT 4 2 Developing and Implementing a Marketing Plan: Canadian Solar Inc Dr. Shawn Qu founded Canadian Solar Inc. in 2001 in Canada. The Company, headquartered in Guelph, Ontario, operates within the solar industry. It designs, manufactures, and sells, manufacturing, and selling solar module products that convert sunlight into electricity for various uses (Canadian Solar Inc. , n.d.). Under Qu’s leadership, the Company has grown into one of the largest solar solutions providers such that its annual revenue amounted to $3.39 billion in 2017. Since this Company is seeking to increase sales to other businesses in the United States, this paper sets out to perform Porter’s five analysis to help it understand the competitive forces at play in its industry. Which elements have the most significant impact on the Company's success? The element that has the most significant impact on Canadian Solar Inc.'s success is rivalry among competitors. Even though the Company has few competitors in its industry, a majority of these firms are very large. They include SunPower, JinkoSolar, and First Solar. These firms’ massive market share implies that they will engage in competitive actions to gain a competitive advantage and become market leaders. Even more, the industry has high fixed costs, thus making competitors push for full capacities. They can, therefo ...
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