Rivalry in the Solar Panel Industry
The solar panel industry has experienced considerable growth in the recent past given the problem of global climate change, which has necessitated the need for alternative sources of energy. According to recent reports, this industry has experienced as annual growth rate of approximately 78% between 2006 and 2011. Moreover, the market value of this sector increased to $11.5 billion from $8.6 billion between 2011 and 2012 (Pritchard, n.d.). Given this recent growth, it is estimated that the solar panel industry will experience approximately 35% increase in electricity produced by this source of energy. Currently, solar panel industry is the rapid growing source of energy across the world as evidence in the increased installations of solar capacity since 2010.
The growth of the solar panel industry has also been characterized by increased competition between companies. Business organizations in this industry are increasingly developing and utilizing strategic plans to invest huge amounts of capital in solar electric power generation. The increased competition is attributed to the fact that the solar panel sector is the fastest growing industry across the globe. However, the competitive environment in this industry is influenced by various factors that determine profit potential including suppliers and buyers' bargaining power, threat of substitutes, and threat of new entrants.
These factors form the basis of the conceptual model of this study that seeks to examining rivalry among existing competitors in the solar panel industry. The conceptual has been developed on the premise that each of these factors plays a crucial role in shaping the competitive...
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