5 Forces Analysis for the Market Entry and Expansion Strategy of Shunfeng International Clean Energy Ltd

Seminar paper from the year 2015 in the subject Business economics - Business Management, Corporate Governance, University of applied sciences, Nürnberg, course: Strategic Management, language: English, abstract: There are big plans for renewables in future: Countries target to 100 % domestic energy demand to be produced by renewable energies. High investments in the branch are supposed to bring the desired targets. The world's demand for energy is growing rapidly since intensified globalization results in global economic growth and welfare giving companies the incentive to conquer new markets. As more electricity is needed, its' price is expected to rise worldwide that hampers economic growth. The world's demand is calling for a global energy mix that adapts to our world's changing economic and ecological conditions. Thus, providing and combining various independent new energy resources for sustainability with the outlook of reducing CO2 emissions in the long term and to assure and improve energy supply around the global. China is successful due to its' competitive advantage of producing lowcost solar modules which has badly affected the EU photovoltaic market and its competing enterprises, but granted the country itself a strong position in the global photovoltaic market with their financial opportunity to expand easily. The implementation of tariff regulation and minimum prices to restrain imports for the protection of Europe's domestic market forces China to rethink its' strategies: China's high government subsidies target for intensive investments in form of expansions to new territories. As subsidies may lead to overcapacities in the home country some solar companies are preparing for market entries in emerging countries eager surviving plans of PV companies in times of high competition and falling prices to increase sales volumes to prevent another insolvency in the sector. Combining South Africa's potential and new business opportunities in highly competitive photovoltaic markets Shunfeng International Clean Energy Ltd could help to boost Wuxi Suntechs' figures to be in black again.