NANOSOLAR INCORPORATION Harvard Case Solution & Analysis

NANOSOLAR INCORPORATION Case Study Solution

3) Compare The Government Incentives Offered In Europe With The Incentives In The United States. How Should Nanosolar Take These Incentives Into Consideration When Formulating Its Market Entry Strategy?

Incentives Offered By Europe And United States Of America

The Incentive Offered By The European Countries Is In The Form Of Feed In Tariffs Where The Government Offered The Electricity Manufacturer To Purchase Their Electricity At Fixed Rate For 10, 15 Or 20 Years. This Strategy Of Purchasing The Electricity Will Enable The Manufacturer To Produce More Electricity To Sell At Fixed Price To The Utilities Which Can Also Enable The Company To Generate Potential Margins (Mohamed Nfaoui, 2018). Moreover, Few Countries In The European Market Have Capped The Megawatts Of Electricity That The Utilities Will Purchase At A Fixed Rate For A Given Period. Moreover, Extra Fees Is Charged On The Customers Of Solar Electricity Consumption So That Subsidy Can Be Provided To The Manufacturers Which Are Offering Electricity At Higher Prices.

In The United States Of America, Subsidies In The Form Of Feed In Tariff Is Also Provided At The Capped Amount Or Megawatt Of Electricity That The Government Or Utilities Will Purchase At Fixed Rate For The Given Year. Moreover, Apart From Feed In Tariffs; The Government Of The United States Is Also Focused On Providing Subsidies And Grants In The Form Of Tax Credit Advantage As Well. As The United States Is Undergoing Market Growth For Solar Panel Energies Providing Tax Advantage To These Type Of Companies, Which Will Increase The Number Of Companies In The Production Of Electricity Through Solar Panel And That Will Help The Country To Fulfill The Appetite Of Growing Demand In The Growing Market (Thomar J. Steenburgh, 2009).

Entry Strategy By Nanosolar Incorporation

Nanosolar Should Take These Incentive In Consideration When Formulating An Entry Strategy In The Market Of Manufacturing Solar Panels. This Will Enable The Company To Plan Secure Future For Their Product By Selling Their Electricity In Advance At Fixed Rate Which Could Be Source Of Potential Profit Margins For The Company (Thomar J. Steenburgh, 2009). Moreover, As The Growing Market Of The United States Of America Tax Advantage Will Also Be Advantageous For Longer Term Perspective Which Will Enable The Company To Provide Electricity At Cheaper Rate In Comparison With Companies In Different Countries.  Hence, The Company Should Formulate Strategy Based On These Factor Where The Maximum Potential Of The Companies Can Be Reached. (Mohamed Nfaoui, 2018).

4) How Should Nanosolar’s Cost Advantage Affect Their Pricing And Customer Selection Strategies?

Pricing And Customer Selection Strategy

The Cost Advantage That Is Available To Nanosolar Incorporation Due To The Advanced Technology And Production Of Thick Film Solar Panel Production Is That The Company Can Offer Low Prices To The Utilities Due To Low Cost Of Production Carried Out By The Company. Moreover, Offering Of Price By The Nanosolar Incorporation Will Also Enable The Companies To Sell The Electricity Produced In Advanced To Those Countries Where The Amount Of Electricity Is Capped At Certain Levels I.E. In Some European Countries Where Fixed Amount Of Electricity Is Purchased By Government And Utilities In A Given Year. Hence, The Low Price Of Electricity Will Have A Brighter Chance Of Being Selected By The Government Who Would Purchase The Electricity In Advance Through Feed In Tariff Facility. Hence, This Will Also Enable The Companies To Target Markets Of Different Countries As The Company Has An Advantage Of Providing Solar Electricity At Cheaper Rates In Comparison With Other Companies Prevailing Within The Industry. (Mohamed Nfaoui, 2018). Therefore, The Company Can Use This Advantage To Secure Its Revenue For The Coming Years Which Will Enable The Company To Secure Its Future And Focus On Technology Enhancement Strategy. The Technology Enhancement Strategy Will Enable The Company To Focus On Reducing The Cost Or Producing Electricity And Manufacturing Solar Panel At Lower Cost Which Will Be Advantageous For The Company And Will Help It To Gain Market Share Through Different Markets Prevailing In Other Countries.

5) What Should Roscheisen Do? Why? What Keeps Him Up At Night About Your Strategy?

Roscheisen Action Plan

The Action Plan Which Must Be Adopted By Roscheisen, CEO Of Nanosolar Incorporation Is To Focus On Further Cost Reduction By Establishing A Manufacturing Plant In Germany To Reduce The Cost By Saving Transportation Cost Due To The Handling Charges Imposed On Solar Panel Goods Because Of Their Nature Which Require To Handle Them Delicately. Hence, The Company Has Sold Its Electricity That Will Be Manufactured Through Solar Panel In Advanced Through Feed In Tariff Facility Offered By The Government Of European Countries. The Future Revenue Of The Company Is Secured Through Advanced Selling Of Electricity, Therefore, Roscheisen Should Now Consider To Focus On Strategies Of Further Reduction Of Cost Which Will Enable The Company To Capture The Markets That Offer Capped Amount Of Electricity Purchased Through Feed In Tariff Facility. Moreover, Capturing Market Of Different Countries Will Enable The Company To Remain Competitive In The Future By Advancing In Technological Development Which Should Be Of Main Concern For The CEO Of Nanosolar Incorporation.............

 

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