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Solectric Market Entry

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Running head: SOLECTRIC 1
Solectric: Market Entry Decision
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SOLECTRIC 2
Solectric: Market Entry Decision
One of the most challenging activities in any organization is deciding when to invest,
how much resources to invest, and the appropriate market to venture. Raymond, who was the
founder of Solectric, a company that was offering solar powered solution to electricity, was
facing this challenge when deciding on whether the company should invest in residential,
refrigerated trailers, or digital signage. This paper will provide a critical analysis and review to
the Solectric case study.
Attractiveness of the Solar Industry
Although Solectric aimed to harness on the opportunities presented by huge electricity
bills, recent market changes had made the solar industry unattractive. The market that they hoped
to capture had been eroded by a decline in federal incentives for people to adopt solar power.
There was also the emergence of more fuel efficient engines and modern home required little
energy for maintenance. To make the situation even more severe, there was the risk of imitation
and importation of cheap similar products from China, which would erode most of the gains that
the business would have made. The Porter’s five forces model will provide a clear insight into
the business competitiveness.
Supplier Power
Solectric was susceptible to supplier power, which could make it difficult for the
company to control the market. There were few suppliers of solar powered instruments from
Asia and Europe. Therefore, solar panels that the company intended to use in its devices were
expensive. In addition, since the company was only selling few units of its products, it could not
be able to negotiate for trade discounts.
Buyer Power

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Running head: SOLECTRIC 1 Solectric: Market Entry Decision Student’s Name Institution Affiliation SOLECTRIC 2 Solectric: Market Entry Decision One of the most challenging activities in any organization is deciding when to invest, how much resources to invest, and the appropriate market to venture. Raymond, who was the founder of Solectric, a company that was offering solar powered solution to electricity, was facing this challenge when deciding on whether the company should invest in residential, refrigerated trailers, or digital signage. This paper will provide a critical analysis and review to the Solectric case study. Attractiveness of the Solar Industry Although Solectric aimed to harness on the opportunities presented by huge electricity bills, recent market changes had made the solar industry unattractive. The market that they hoped to capture had been eroded by a decline in federal incentives for people to adopt solar power. There was also the emergence of more fuel efficient engines and modern home required little energy for maintenance. To make the situation even more severe, there was the risk of imitation and importation of cheap similar products from China, which would erode most of the gains that the business would have made. The Porter’s five forces model will provide a clear insight into the business competitiveness. Supplier Power Solectric was susceptible to supplier power, which could make it difficult for the company to control the market. There w ...
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