First Solar case study   The case analysis should be segmented…

MegaMooseMaster157 First Solar case study   The case analysis should be segmented…First Solar case study The case analysis should be segmented into 4 discussions: 1. The Industry Attractiveness both qualitatively (Porter’s Five Forces) and quantitatively (Return on assets/Return on Capital)2. The Company’s Advantage: comparing the cost and the willingness-to-pay across competitors3. Identify Major Challenges (Raw Material prices, subsidies, new entrants, entry barriers, etc…)4. Express Recommendations Image transcription text17-181 MIT September 13, 2017 MANAGEMENT SLOANSCHOOL First Solar Neil Thompson and Jennifer Ballen py TymendeJong, First Solar’s senior vice president of module m… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen As deJongreflected on the company’s recent financial slump, he wondered ifFirst Solar’s competitive edge had eroded permanentl… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Figure 1 Stepsin the PV Supply Chains Production Stage Process for CrystallineSilicon Process For Thin Film A substrate (e.g. glass) an… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen over time, from$48/kg in 2006 to $192/kg in 2011 (Exhibit 2). Offsettingthin~film’s cost advantage was its historically lower ef… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen high level(Exhibit 5). Despite this, the total global PV installed base at BUY201 1 was 65 gigawatts and experts predicted that thi… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen The commercialand utility markets both ?nanced solar projects with solar leasesand power purchase agreements (PPAs), financial cont… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen reliability of thesystem. Feed—in—tariffs were implemented by manygovernments to encourage demand and required utilit… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Most of theearly work in photovoltaic generation was done on crystallinesilicon, so that’s where the R&D investments wen… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen The companyfirst ventured into the systems business in late 2007 with a $34.4million acquisition of system integrator, Turner Renew… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Sohncommented on the vertical integration: We realized that we couldscale our production faster than our customers [the sy… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen commercialcustomers. Although Solyndra had increased production from 30MW in 2009 to 67 MW in 2010,23 the company was u… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Chinesemanufacturers produced so many panels over this period thatthey had to store millions of panels in warehouses in C… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen In September of201 l , U.S. CIGS33 manufacturer Solyndra filed for bankruptcyafter just six years of operation, resulting in the loss of … Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 1Thin-Film and Crystalline Silicon Solar Cells Thin film CrystallineSilicon Front (Substrate) Glass Anti-reflective coating (… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 3Module Size and Wattage37 Company Area of Solar ModuleWatts per Module First Solar 8 ft 80 SunPower 23.3 ft … Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 5 NewGlobal PV Installations New Global PV Installations (MW) 30,000ROW 25,000 China U.S. 20,000 15,000 10,000 Europ… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 7Manufacturing Cost per Watt FIRST SOLAR 2011 2010 20092008 2007 Watts (thousands)3 1,700,581 1,400,696 … Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 8 Shareof Sales in Components and Systems (US$) First Solar 2011 20102009 2008 2007 Component Systems Component Sys… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 9Consolidated Financial Statements for First Solar, SunPower,Suntech, and Yingli Green Energy FIRST SOLAR: INC… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen SUNPOWERCORPORATION: INCOME STATEMENT ( ‘000s of USD) 1-Jan-122-Jan-11 3-Jan-10 28-Dec-08 30-Dec-07 Revenue Uti… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen SUNTECHPOWER HOLDINGS CO, LTD: INCOME STATEMENT ( ‘000s ofUSD 31-Dec-11 31-Dec-10 26-Dec-09 27-Dec-08 29-… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen YINGLI GREENENERGY HOLDING CO, LTD: INCOME STATEMENT ( ‘000s ofUSD) 31-Dec-11 31-Dec-10 31-Dec-09 31-Dec-08 31… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen FIRST SOLAR:BALANCE SHEET ( ‘000s of USD) 31-Dec-11 31-Dec-1026-Dec-09 27-Dec-08 29-Dec-07 Cash and Cash Equi… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Accrued solarmodule collection and recycling liability 167,378 132,951 92,79935,238 13,079 Long-term debt 619,143 210,804 146,… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen SUNPOWERCORPORATION: BALANCE SHEET (‘000s of USD) 1-Jan-122-Jan-11 3-Jan-10 28-Dec-08 30-Dec-07 Cash and ca… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Long-term deb355,000 50,000 237,703 54,598 Convertible debt, net of currentportion 423,268 591,923 398,606 357,173 Customer … Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen SUNTECHPOWER HOLDINGS CO, LTD: BALANCE SHEET ( ‘000s of USD31-Dec-11 31-Dec-10 26-Dec-09 27-Dec-08 29-Dec-… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Long-term bankborrowings 133,300 163,300 138,000 5,900 20,700 Convertiblenotes 580,900 551,200 516,900 981,200 500,000 Ac… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen YINGLI GREENENERGY HOLDING CO, LTD: BALANCE SHEET ( ‘000s of USD31-Dec-11 31-Dec-10 31-Dec-09 31-Dec-08 29-Dec-… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Convertiblesenior notes 13,838 14,670 182,031 173,105 Medium-termnotes 382,337 151,686 Long-term debt, excluding cur… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Exhibit 10 CoreManufacturing Costs Wafer Based Silicon Cell: CoreManufacturing Costs $0.95 $0.89 $0.851 $0.85 $0.82… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen GlossaryBalance of Systems {EDS} costs: the additional component costsof a solar system beyond the modules, such as the cost… Show more… Show moreImage transcription textFIRST SOLAR Neil Thompson and Jennifer Ballen Physical vapordeposition [PVD]: describes a variety of vacuum depositionmethods, which can be used to produce thin ?lms. PV… Show more… Show more BusinessBusiness – Other