Canadian Solar Situation Analysis

Running Head: CANADIAN SOLAR SITUATION ANALYSIS 1
Canadian Solar, Inc. Situation Analysis
University of Maryland University College
MBA 640
Company Overview
Canadian Solar Inc. (Canadian Solar) is one of the largest manufacturers of solar panels. It is a
Chinese company based in Guelph, Ontario, Canada. It is a provider of solar power products,
services, and system solutions with operations in North America, South America, Europe, Africa,
the Middle East, Australia, and Asia. Products include module segment, energy development
segment, and electricity generation as well as the design, development, manufacture, and sale of
solar power products for use in a range of residential, commercial and industrial solar power
generation systems. The company offers various products, including ingots, wafers, solar cells,
solar power systems, and solar products.
It has manufacturing facilities in Canada and China. The company markets its products to
diverse customers in various markets, including Germany, Italy, France, Spain, Czech Republic,
China, the US, Canada, Japan, and India. Canadian Solar is headquartered in Guelph, Ontario,
Canada.
Solar energy or renewable energy is the latest technological phenomenon of our times.
Consider that in a single, the amount of power from the sun that strikes the Earth is more than the
entire world consumes in a year. To put that in numbers, from the US Department of Energy:
Each hour 430 quintillion Joules of energy from the sun hits the Earth. That's 430 with 18 zeroes
after it! (Harrington, 2019). Canadian Solar is positioned at the top of this growing industry.
The company is listed as CSIQ on the NASDAQ market with reported revenues of (US
Dollars) US$3,744.5 million for the fiscal year ended December 2018 (FY2018), an increase of
10.4% over FY2017. In FY2018, the company’s operating margin was 9.7%, compared to an
operating margin of 7.9% in FY2017. In FY2018, the company recorded a net margin of 6.3%,
compared to a net margin of 2.9% in FY2017 (E Trade, 2019).

Canadian Solar employees 12,000 people in 12 different countries, 70% work in China,
and of those 30% are female. Canadian Solar has strong employee and labor rights for their
employees no matter where they work.
Mission
Canadian Solar is dedicated to changing the lives of all its customers for the better and
have been since their inception, whether customers invest in a single module, a large project or a
tailor-made energy solution. Their PV panels are thoroughly tested and proven under harsh
conditions that come with a 25-year warranty. Their dedication to their products and to
supporting their customers in over 20 countries adds up to attractive bankability too. Their
customers’ will always have peace of mind knowing that they are dealing with a highly ranked
and reliable company.
Business Description
Canadian Solar Inc. (Canadian Solar), together with its subsidiaries, is engaged in
designing, manufacturing, and delivering solar products and solar system solutions. The
company offers a range of solar products such as ingots, wafers, solar cells, solar modules, and
other solar products. Canadian Solar operates in North America, Europe, Australia, and Asia.
Canadian Solar categorizes its business activities into two segments: MSS and Energy. In
FY2017, MSS segment reported revenue of US$2,850.9 million which accounted for 80.8% of
the company’s total revenue including eliminations, whereas, the Energy segment reported
revenue of US$677.5 million which accounted for 19.2% of the company's total revenue
including exclusions.
The company's product portfolio includes standard solar modules, solar modules, solar
products, solar cells, and solar system kits and products. Canadian Solar produces a range of
standard solar modules, ranging from three watts to more than 300 watts in power and using
multi-crystalline and monocrystalline cells in several formats, including general-purpose cell
formats, small modules for products and larger sizes for ground-mounted projects. The
company's solar modules are used in residential, commercial, and industrial solar power
generation systems.
The company's solar products include Andes Solar Home System (Andes SHS) and
Maple Solar System (Maple SS). The Andes SHS is an off-grid solar system, which is designed
to provide electricity to homes and communities without access to grid electricity and when
emergency power is required. The Maple SS is engaged in providing clean energy solutions. It is
a mobile power source for outdoor activities, such as camping, boating, and hiking. Maple SS
includes a solar panel, energy-efficient LED (light-emitting diodes) lights, Li-ion batteries, and
cell phone charger plugs. Canadian Solar also manufactures solar cells (MarketLine, 2019a).
The company purchases solar cells from international and local suppliers. Canadian Solar
markets solar system kits, which consists of solar modules produced by the company and third
party supplied components such as inverters, racking system, and other accessories in the
Canadian and Japanese markets.
The company performs engineering design, procurement, and construction work for the
solar project. The company also provides engineering, procurement, and construction (EPC),
O&M services, and contracting services to solar project development partners in Canada. The
company undertakes research and development (R&D) activities through two research and
development centers: The Center for Solar Cell Research and the Center for Photovoltaic Testing
and Reliability Analysis, (One Stop Report, 2019a).

Geographically, the company divided its revenue into three major regions: the Americas,
Asia, and Europe and Others. In Europe, it has operations in Germany, Spain, Czech Republic,
Italy, Britain, and Others; in Americas, it has activity in the US, Canada, and Others; and in Asia,
it has operations in China, India, Japan, and Singapore. In FY2017, the Asia region accounted for
56.8% of the company's total revenue followed by the Americas with 32.7%, and Europe and
Others with 10.5% (MarketLine, 2019b).
Canadian Solar's subsidiaries include the following: Canadian Solar Project K.K., CSI
Solartronics (Changshu) Co., Ltd.; CSI Solar Technologies Inc.; CSI New Energy Holding Co.,
Ltd.; CSI Cells Co., Ltd.; Canadian Solar (USA) Inc.; Canadian Solar Solutions Inc.; Canadian
Solar (Australia) Pty, Ltd. And Canadian Solar Manufacturing (Luoyang) Inc. (MarketLine,
2019c).
Products include Double Glass PV Module, Standard PV Modules, Quartech PV Modules,
NewEdge Modules, BIPV Products, Speciality Products, Rooftop PV System Kits, Transformer-
less Inverter, Andes Solar Home System, Maple Solar System,
Services offered: EPC Services, O&M Services, PV Testing Services, Test and Analysis Service
Brands: Canadian Solar
Major competitors:
First Solar, Inc.
JA Solar Holdings Co Ltd
Renesola Ltd
SunPower Corporation
Trina Solar Limited
Yingli Green Energy Holding Company Limited
Value Proposition
Canadian Solar is dedicated to changing the lives of all its customers for the better.
Whether customers invest in a single module, a large project, or a tailor-made energy solution,
they stand behind their products and service. Their PV panels are thoroughly tested and proven
effective under harsh conditions and come with a 25-year warranty. Based on this and the
excellent customer support in over 20 countries makes Canadian Solar an attractive company to
invest in and to purchase products from. They promise their customers will always have peace of
mind knowing they are dealing with a highly ranked, reliable service provider, and manufacturer
of solar energy products (One Stop Report, 2019b).
Figure 1 Example of Canadian Solar Product
SWOT – Strengths, Weaknesses, Opportunities, and Threats

Executives using SWOT analysis compare internal strengths and weaknesses with
external opportunities and threats to generate ideas about how their firm might become more
successful. A vision that allows a firm to leverage its strengths, steer clear of or resolve its
weaknesses, capitalize on opportunities, and protect itself against threats are particularly helpful
(UMUC, 2019).
Strengths
Canadian Solar is one of the largest producers of solar equipment and is a vertically
integrated company with a sound business model. Being a vertically integrated business allows
Canadian Solar to lower the cost of materials of its solar module products and address short-term
demand increases. They integrate their internal manufacturing capacity with direct material
purchases of cells and wafers from several international vendors. In FY2018, the company's solar
module manufacturing costs in China, including purchased polysilicon, wafers, and cells, has
been reduced to US$0.2 per watt from US$0.32 per watt in the previous year (MarketLine,
2019d).
Canadian Solar has a strong market position which allows the company to meet
customer's demand for solar power. Canadian Solar is one of the largest solar power companies
in the world, and one of the global top 3 solar companies by revenue and net income in FY2018.
By the end of 2018, the company had solar cell, wafer and ingot production capacity of 6.3 GW,
5 GW and 1.65 GW, respectively, and module manufacturing capacity of 8.88 GW; and delivered
more than 33 GW of solar modules. The company has solar power projects of 4.6 GW and
owned and operated solar power plants of approximately 1 GW (MarketLine, 2019e).

Their business performance is also strong as the company is in constant competition to
obtain new solar power projects, and not merely produce solar devices. Project work is the
second major contributor to its revenue, and in FY2018, this business line accounted for 39.5%
of the company's revenue and grew 132.6% YoY. The significant growth was due to the increase
in sales of solar power projects in the US and China. Over the past three years, this business line
recorded a CAGR of 284.8%, which was due to an increase in sales of solar power projects. Its
operating profit grew 32.6% YoY to US$211.54 million (MarketLine, 2019f).
Weaknesses
Canadian Solar continued to report significant debt, which could affect its operational
performance, as a substantial portion of its earnings would be used to pay its debt obligations.
The debt could be of concern to the investors and make it difficult for the company to raise funds
on favorable terms from the market. In FY2018, the company's total debt stood at US$2,184.46
million, as compared to US$3,061.2 million in FY2017, which indicates a decrease of 28.6%. Its
debt to equity ratio stood at 1.38, which is above the alternative energy industry average of 0.33
for the same year (One Stop Report, 2019c).
The company's MSS business line reported a decline in its performance. In FY2018, this
business line accounted for 60.5% of the company's revenue and fell 15.3% YoY. This decline
was due to 5.3% decline solar module shipments and 14.2% fall in the average selling price of
solar modules, because of oversupply conditions in the market, policy changes in China and
change in the geographic mix of sales. Over the past three years, this business line recorded
negative growth of 7.6%, which was due to 22.2% decline in the average selling price of solar
modules, driven by the oversupply of solar products (MarketLine, 2019g).
Opportunities
US Government's investments in solar energy could benefit the company's operations, as
it generates approximately one-third of revenue from this country. Under Investment Tax Credit
(ITC), the government provides solar energy-related investments until the end of 2019. Solar
energy has a permanent 10% ITC, and temporarily, the credit rate for solar is 30% through 2019
for the installation of solar power and energy storage and was reduced to 26% in 2020 and 22%
in 2021 (One Source Report, 2019).
Growth in the solar market globally could benefit the company’s operations. According to
in-house research, solar PV has been the leading emerging technology for electricity generation
and has also become commercially viable in more than 80 countries, over the past 15 years. The
solar PV market is expected to grow at a CAGR of 10.8% during 2018-2030 and reach 1,516
GW by 2030.
Strategic initiatives could enable the company to secure growth opportunities. In June
2019, Canadian Solar signed a module contract with Solarcentury, to supply 500 MW modules to
Solarcentury's two projects, Cabrera and Talayuela Solar in Spain which enables the company to
expand its presence and competitive position in this region. In the same month, Canadian Solar
signed a 15-year power purchase agreement with Anheuser-Busch, for supplying 310 Megawatts
of electricity from its Maplewood Solar Project. Canadian Solar is a strong position globally to
enter foreign markets (MarketLine, 2019h).
Threats
Unfavorable market conditions in the solar power market could affect the company’s
operations. Oversupply conditions across the value chain can affect industry-wide demand and
increased pressure on average selling prices. Demand and average selling price for solar products
alter based on demand-supply conditions and governments' financial support and the imposition
of trade barriers. Over the past three years, the average selling prices for the company's solar
modules declined by 22.2%.
The company could face risks related to its operations, which affect the quality of service
and customer engagement. The risks include technology risks, project design, debt and equity, as
well as financing, environmental mitigation plans, and social mitigation plans; and operational
risks.
Canadian Solar’s business could be affected by the increasing popularity of other
renewable generation sources such as wind, geothermal, and tidal, along with the already
dominant fossil fuel. Some of these technologies produce no emissions. Wind, as a source of
power generation, is gaining momentum across the world.
STRENGTHS WEAKNESSES
- Business Model - Debt

- Market Position - US Tariffs INTERNAL
- Focused R&D - MSS Revenue slowing
OPPORTUNITIES THREATS
- US Government investment - Market Conditions

EXTERNAL
- Growth of the solar market - Technology
- Strategic Initiatives - Substitutions
POSITIVE NEGATIVE
Figure 1.2 SWOT Chart
Organizations use the SWOT analysis model to continuously strengthen their strategic
management, which consists of the analysis, decisions, and actions an organization undertakes to
create and sustain competitive advantages (Dergisis, 2017). When used properly, the SWOT
model allows the organization to focus and analyze their Strengths and Weakness and adjust to
the Opportunities and Threats to determine how and when to seek these out or prevent them from
occurring. Used along with the PESTEL model and Porters 5 Forces, the organization will be
well prepared to retain or obtain a competitive advantage.
PESTEL – Political, Economic, Social, Technological, Environmental, and Legal

PESTEL is the model used to evaluate a company in addition to using financial analysis
and the SWOT model (UMUC, 2019b). It analyzes six factors that may influence the strategy of
a business.
Figure 1.3 PESTEL Diagram
Political:
Tariffs The solar industry has a new way of ducking the Trump administration’s tariffs on
its imports: two-sided panels. The U.S. Trade Representative said in a notice made public
Wednesday that it's granting an exemption to solar duties for bifacial panels, ones that can
generate power on both sides. The carve-out is a win for both Asian manufacturers including
JinkoSolar Holding Co., LG Electronics Inc., and Hanwha Q Cells Co. and big U.S. solar-farm
developers that can easily switch over to using them (Bloomberg, 2019).
Economic.
The business outlook is exceptional. The company has expanded its annual in-house
manufacturing capacity for ingots, wafers, cells, and modules from about 800 MW in 2009 to 1.3
GW in 2010. In 2010 it opened a new 218 MW module plant in Canada and expanded a plant in
China, and in mid-2011 it announced plans to build a third solar cell manufacturing plant in
China. Canadian Solar will own 61% of the plant, and two Chinese companies, Suzhou New
District Economic Development Group Corporation and Suzhou Science and Technology City
Development Co., Ltd., will own the rest (MarketLine, 2019i).
Canadian Solar is also increasing its production capacity as well as increasing its’ product
offerings when it began selling solar system kits in Canada and Japan. A solar system kit is a
rooftop-mounted, ready-to-install package of solar modules and third-party supplied components
such as inverters and racking systems. A typical residential rooftop solar system generates about
3 KW AC output, and a commercial system produces between 30 KW to 500 KW AC output.
Solar system kits accounted for about 6% of the company's overall sales in 2010.
The company also expanded its customer base in 2010. Its top five customers accounted
for about 25% of sales, whereas in 2009 the top five accounted for almost 60% of sales.
Canadian Solar earns much of its revenue from selling solar modules to solar power plant
operators, usually electric utilities, in Europe (MarketLine, 2019j).
Tariffs imposed by the United States in several countries, the most significant being
China, may have an impact on solar panels. According to Reuters Reporting Agency, President
Donald Trump's tariff on imported solar panels has led U.S. renewable energy companies to
cancel or freeze investments of more than $2.5 billion in large installation projects, along with
thousands of jobs (Groom, 2019).
Social:
Canadian Solar employees 12,0000 employees in 12 different countries while 70% are in
China, of this 30 % are female. Canadian Solar has a robust Human Resources compact with its
employees and lives up to the high principles of labor rights and conditions.
Canadian Solar has implemented an active grievance policy for its employees, full
compliance with OSHA and EPSA standards and report lower than industry standards for the
lost-time incident frequency rate per million hours worked for all, (< 4.0). The company also
implements various programs to improve safe behavior, and if an accident occurs, the company
conducts a complete investigation for the cause.
Technological
Although Canadian Solar is the leading solar panel manufacturers in the world, there are
competitors eager to nibble away at their market shares. Those strong competitors are:
 Trina Solar
 Jinko Solar
 SunPower Corp
 Hanwha Q Cells
All banked by the Chinese banks and government, all operate in China, and all have different
designs, product lines, and efficiencies of their solar panels. (Infiniti Research, 2019).
According to Rob van Leen, Chief Innovation Officer of DSM, (Royal DSM Inc.), solar
is about to be the next big boom in the energy market, but companies like Canadian Solar need to
increase efficiency. He suggests that solar companies need to (1) further lowering of cost to
allow for higher PV deployment and storage, (2) prevent large imbalances in demand/supply in
the fast-growing market, and (3) work with local governments in policies and pricing schemes to
attract new users. (Van Leen, 2019). He also stated that in the energy storage market, it is about
providing safer, more efficient, and cost-effective batteries and supporting the need for
Gigafactories required to meet market demands.
Environment:
Renewable energy is a thriving market. Large scale energy fields are popping up around
the globe, and homeowners and business are purchasing more solar panels and solar systems to
cash in on the energy costs savings. Mobil energy and charging stations are also an area within
the market that is under-produced and can provide excellent revenues.
As cities being to expand its urban short-range public transportation, they will need
renewable energy sources, and Canadian Solar can be a big player in this segment. This move to
solar energy is good for the environment, consumers, and Canadian Solar.
Building solar smart buildings is also an area in which Canadian Solar can increase
market share. Working with construction firms, they can plan and build modular and versatile
buildings integrating solar solutions, which can reduce carbon emissions and improve energy
efficiency.
By tapping into more solar energy will enable better technologies to emerge, such as
storage, digitalization, smart homes and smart grids which will play a key role in fostering solar’
s establishment as the primary power source for energy and possible reduce carbon emissions to
a pittance of what it is today. The more solar consumers in the world will lead the transformation
towards a clean urban energy system. (Global Market Outlook, 2019).
Legal:
The only significant legal case involving Canadian Solar Inc. was Abdula v Canadian
Solar Inc.1 is the first decision in Ontario to consider, and grant, certification for alleged
misrepresentations of a global class of all shareholders, regardless of their residency, in a
corporation the shares of which were traded only on a foreign exchange.
Canadian Solar’s shares were publicly traded on NASDAQ and did not trade on any
Canadian stock exchange. In a prior decision in the same proceeding, the Court of Appeal for
Ontario had confirmed that a company does not have to be publicly traded in Ontario to be a
“responsible issuer” under Part XXIII.1 of the Ontario Securities Act,2 and therefore subject to
that legislation. The Court of Appeal had also confirmed that, despite its principal place of
business in China, Canadian Solar had a real and substantial connection to Ontario, based on its
registered office, executive office, annual meetings, private placements, involvement in solar
projects and the release of shareholder documents by the company, all of which occurred in the
province.
In Canadian Solar, the court held it could certify a global class if there were a "real and
substantial connection" between the claims asserted on behalf of the foreign class members and
Ontario (Penz &White, 2015).

Porters 5 Forces Analysis

Porter's five forces analysis is a valuable tool for conducting an industry analysis. The
model stipulates that an industry's profit potential is contingent on the intensity of competitive
rivalry within it. This rivalry, in turn, depends on the five forces outlined in the sections below
(UMUC, 2019c).
The renewable energy market is made up of several large global companies who are
entrenched in the market. Entry into this market is tight, expensive and not a threat, but that can
change quickly through technology and a company discovering better efficiencies for capturing
solar energy, storage it, and providing customers constant value.
The Threat of New Entrants

New entrants in Semiconductor - Specialized brings innovation, new ways of doing
things and put pressure on Canadian Solar Inc. through lower pricing strategy, reducing costs,
and providing new value propositions to the customers. Canadian Solar Inc. must manage all
these challenges and build effective barriers to safeguard its competitive edge.
Canadian Solar can prevent these threats by innovating new products and services. New
products bring not only new customers to the fold but also give old customer a reason to buy
Canadian Solar Inc. ‘s products. By building economies of scale so that it can lower the fixed
cost per unit. Building capacities and spending money on research and development. New
entrants are less likely to enter a dynamic industry where the established players such as
Canadian Solar Inc. keep defining the standards regularly. It significantly reduces the window of
extraordinary profits for the new firms, thus discourage new players in the industry.
Bargaining Power of Suppliers
All most all the companies in the Semiconductor - Specialized industry buy their raw
material from numerous suppliers. Suppliers in a dominant position can decrease the margins
Canadian Solar Inc. can earn in the market. Powerful suppliers in Technology sector use their
negotiating power to extract higher prices from the firms in the Semiconductor - Specialized
field. The overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Semiconductor - Specialized.
Canadian Solar can avoid this by building an efficient supply chain with multiple
suppliers and by experimenting with product designs using different materials so that if the
prices go up of one raw material, then company can shift to another. They can also develop
dedicated suppliers whose business depends upon the Canadian Solar.
Bargaining Power of the Buyers
Purchasers demand a lot from products and services, and they want to buy the best product at
the best price. Consumer demand can put pressure on Canadian Solar Inc.’s profitability in the
long run. The smaller and more powerful the customer base is of Canadian Solar Inc., the higher
the bargaining power of the customers, the higher their ability to seek increasing discounts and
offers.
Canadian Solar Inc. can tackle the Bargaining Power of Buyers by building a broad base of
customers; this will be helpful in two ways. It will reduce the bargaining power of the buyers,
plus it will provide an opportunity to streamline its sales and production process. By rapidly
innovating new products, customers will always be seeking Canadian Solar products. Therefore,
if Canadian Solar can continue producing better and more efficient products, customers will
become long term clients, and this will provide Canadian Solar with a competitive advantage.
Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example, services like UBER or Lyft are substitutes for professional
taxi’s. The threat of a substitute product or service is high if it offers a value proposition that is
uniquely different or better value than present offerings of the industry.
Canadian Solar Inc. can avoid this by being service oriented rather than just product oriented.
By understanding the core need of the customer rather than what the customer is buying. By
increasing the switching cost for the customers.
Rivalry among Existing Companies
If rivalry is intense among existing players in an industry, then prices will remain low
(discounts), and this will decrease the overall profitability of the industry. Entry into this market
segment is expensive because of the costs of manufacturing, massive demand for raw materials,
a strong distribution network, and brand image. Canadian Solar Inc. is one of the five largest
manufacturers of solar panels, the other in that distinguished groups are:
• Trina Solar
• Jinko Solar
• SunPower Corp
• Hanwha Q Cells
All banked by the Chinese banks and government, all operate in China, and all have
different designs, product lines, and efficiencies of their solar panels. (Infiniti Research, 2019).
Canadian Solar Inc. can avoid fierce and intense competition by building a sustainable
differentiation, ensuring that its’ products and brand stands above the rest, building scale so that
it can compete better in the supply chain environment, and by collaborating with competitors to
increase the market size rather than just competing for small market.
By analyzing all the five competitive forces, Canadian Solar Inc. strategists can gain a
complete picture of what impacts the profitability of the organization in Semiconductor -
Specialized industry. They can identify game changing trends early on and can swiftly respond to
exploit the emerging opportunity. By understanding and using Porter’s Five Forces in
conjunction with the use of the SWOT and PESTEL models will enable Canadian Solar Inc.’s
managers to shape the future they desire.
Critical Issues
The most crucial issue for Canadian Solar will be how to bring new, better, efficient solar
energy products to the market to capture brand loyalty, brand image and a more significant
market share in an expanding industry. Building this brand is dependent on how much revenue
Canadian Solar will spend on research and development since it currently lags the other top
producers of solar energy producers.
Canadian Solar had attracted a full section of customers in 2009 where its top five customers
accounted for 25% of all sales while today they account for 60% of all sales placing higher risk
on the company. At the same time, they earn most of its' revenues from selling solar modules to
solar power plant operators, usually electric utilities, in Europe, and not a broader US
homeowner market.
Canadian Solar continued to report colossal debt, which could affect its operational
performance, as a significant portion of its earnings would be used to pay off debt. The debt
could be of concern to the investors and make it difficult for the company to raise funds on
favorable terms from the market. In FY2018, the company's total debt stood at US$2.1 million,
as compared to US$3.2 million in FY2017, which indicates a decrease of 28.6%. Its debt to
equity ratio stood at 1.38. The debt to equity ratio was above the alternative energy industry
average of 0.33 for the same year (One Stop Report, 2019).
Conclusion and Recommendation
Canadian Solar is one of the top five producers of solar products in the world. It has
business operations around the globe and is well postured to provide a competitive advantage
over others in the industry. Utilizing the SWOT analysis, it is evident that Canadian Solar has
strengths in the Market Position, its Business Model, and has a focused R&D structure that is
innovative and in pursuit of new and more efficient products.
Their other strengths also lie in the US market where state and local governments are still
providing tax incentives for homeowners and business to use renewable energy, and this could be
an untapped market for Canadian Solar. Other strengths are the continual growth of the
renewable energy market and the active strategic initiatives Canadian Solar possesses.
One recommendation would be to build up the brand image and identity so that customers will
seek out Canadian Solar products and services to the point that they will be the go-to company
when it comes to home solar systems and solar grid resources.

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Canadian Solar Situation Analysis

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Running Head: CANADIAN SOLAR SITUATION ANALYSIS 1

Canadian Solar, Inc. Situation Analysis

University of Maryland University College

solar power systems, and solar products.

compared to a net margin of 2.9% in FY2017 (E Trade, 2019).

employees no matter where they work.

and reliable company.

multi-crystalline and monocrystalline cells in several formats, including general-purpose cell

Canadian and Japanese markets.

and Reliability Analysis, (One Stop Report, 2019a).

Others with 10.5% (MarketLine, 2019b).

Products include Double Glass PV Module, Standard PV Modules, Quartech PV Modules,

less Inverter, Andes Solar Home System, Maple Solar System,

of solar energy products (One Stop Report, 2019b).

Figure 1 Example of Canadian Solar Product

SWOT – Strengths, Weaknesses, Opportunities, and Threats

owned and operated solar power plants of approximately 1 GW (MarketLine, 2019e).

Their business performance is also strong as the company is in constant competition to

operating profit grew 32.6% YoY to US$211.54 million (MarketLine, 2019f).

for the same year (One Stop Report, 2019c).

modules, driven by the oversupply of solar products (MarketLine, 2019g).

US Government's investments in solar energy could benefit the company's operations, as

in 2021 (One Source Report, 2019).

enter foreign markets (MarketLine, 2019h).

modules declined by 22.2%.

Canadian Solar’s business could be affected by the increasing popularity of other

power generation, is gaining momentum across the world.

- Business Model - Debt

- US Government investment - Market Conditions

Figure 1.2 SWOT Chart

well prepared to retain or obtain a competitive advantage.

PESTEL – Political, Economic, Social, Technological, Environmental, and Legal

Figure 1.3 PESTEL Diagram

Development Co., Ltd., will own the rest (MarketLine, 2019i).

rooftop-mounted, ready-to-install package of solar modules and third-party supplied components

3 KW AC output, and a commercial system produces between 30 KW to 500 KW AC output.

operators, usually electric utilities, in Europe (MarketLine, 2019j).

thousands of jobs (Groom, 2019).

conducts a complete investigation for the cause.

Gigafactories required to meet market demands.

the market that is under-produced and can provide excellent revenues.

towards a clean urban energy system. (Global Market Outlook, 2019).

misrepresentations of a global class of all shareholders, regardless of their residency, in a

corporation the shares of which were traded only on a foreign exchange.

Ontario (Penz &White, 2015).

Porters 5 Forces Analysis

solar energy, storage it, and providing customers constant value.

The Threat of New Entrants

Bargaining Power of Suppliers

profitability of Semiconductor - Specialized.

dedicated suppliers whose business depends upon the Canadian Solar.

Bargaining Power of the Buyers

Threats of Substitute Products or Services

uniquely different or better value than present offerings of the industry.

increasing the switching cost for the customers.

Rivalry among Existing Companies

manufacturers of solar panels, the other in that distinguished groups are:

complete picture of what impacts the profitability of the organization in Semiconductor -

managers to shape the future they desire.