This document provides an overview of the solar panel manufacturer Suntech. Some key details: - Founded in 2001 and went public in 2005, Suntech had 20,000 employees and $2.9 billion in turnover by 2010. - It is headquartered in Wuxi, China and has manufactured over 12 million solar panels across 80 countries. - Suntech focuses on technology leadership, high quality, and cost leadership through R&D, efficiency gains, and scale. - It uses acquisitions and partnerships to strengthen its core business and supply chain. - However, Suntech declared insolvency in 2013 due to high competition, price dumping accusations, and financial issues

1. Arthur Januszkiewicz Silvan B. Meier
Sebastian Lachenit Vinzent Karger

2. Company
Profile
Employees (2010) 20.000
Turnover 2.9 bn
Headquarter Wuxi
Founded in
by solar Dr. Zhengrong Shi
2001
Public traded company in 2005 Volatile oil prices fueled concerns for
renewable energy
12 million panels in 80 countries Production capacity increased to
1400MW in 2010

3. Where is Suntech
Active?
• Design, Development, Marketing & Manufacturing of
silicon based PV products
• Worldwide residential, commercial, industrial, and public
utility applications and systems integration services
• Key solar energy markets
– US, Germay, China, Australia, Spain, Middle East,
South Korea, Japan, Italy

4. Strategic Intent
• Suntech’s top priorities
Technology &
superior value
High quality &
low cost
Cost & scale
leadership

5. Focused efforts on internal developments
Focus on enduring capabilities
Strategic acquisitions & Joint Ventures
- Increasing efficiency
- R&D to increase cell
efficiency
- Cost reductions
- Capacity expansion
- superior value
- Leveraging lowcost prod.
- Creating scale economies
- Rapid innovation
- Increasing efficiency
- R&D to increase cell
efficiency
- Cost reductions
- Capacity expansion
- superior value
- Increasing efficiency
- R&D to increase cell
efficiency
- Cost reductions
- Capacity expansion
- superior value
- Corporate umbrella for
over 36 different
subsidiaries in operation
- strategic acquisitions and
investments
What’s Suntech’s Economic Logic?

7. Internal Environment
• Strong Market Growth Outlook
• Leading Market Position
• Leading R&D Capabilities
• Quality Commitment
• Strong Supplier Relationships
• Broad Product Portfolio
• International Management Team

8. Growth prospectives

9. What’s Suntech’s
Staging?
• Solar Cells
– Solar solutions: modules, systems, systems
integrations
• Staggering Speed
– Production capacities have doubled every year
since 2004

11. Key Mergers &
Acquisitions
• Aggressive targeting of suppliers and
manufacturers of solar technology
• KSL-Kutler, increase expertise in
manufacturing
• Luoyong China Silicon, secure silicon supplies
for solar cells

12. Cooperative Strategy Analysis
Partnerships & Alliances
• Strengthen core business, solar developments,
enhance R&D, and secure supplies
– University of New South Wales: solar cell efficiency
– Calisolar Inc. to secure solar silicon manuf. facility
– Secure development of smart panel technology

13. International Strategy Analysis
• Adapting to local market differences
– Building relationships with customer base
– Distribution and subsidies
• Exploiting economies of global scale
• Promote adoption of solar power
• Operate manufacturing, distribution and sales offices worldwide
• Exploiting economies of global scope
– Deliver same quality and level of service regardless of location

14. International Strategy Analysis
• Tapping optimal locations
– Leverage locations with access to low cost
resources and clean energy mandates
• Maximizing knowledge transfer
– 36 subsidiary organizations and 13 sales offices
– Manufacturing and R&D locations in China &
Europe

15. Problems accure in 2008

16. Porters 5-Forces Model
Threat of Entry
Moderate
Threat of Buyers
Strong
Threat of Substitutes
Strong
Threat of Suppliers
Strong
Rivalry
Strong

17. Problems
Suntech announced insolvency in march 2013
• High competition  less revenue
• EU and US accused suntech and chinese solar industry of
price dumping and unfair subsidies.
• Selling solar panels below costs in order to gain market share
• financial crisis  unpaid customer bills
• Miscalculation on ROI (bonds for investors)
• Thought globally, did not act locally

18. • “What (Suntech) has done is increase supply to the market so much, that they
really almost can’t sell anything at a profit now,”
• “Suntech, as a private firm, went too fast in its expansion,” said Liu Wenping, a
partner in Shanghai-based solar investment consulting firm Sapphire Capital.
• “The founder, with the role of scientist-entrepreneur, didn’t have the experience
to manage such a big company with tens of thousands of workers.”

19. Cultural Administrative Geographic Economic
Caring about
environment
(green movement)
governmental
interventions:
weather Solar panel is seen as
an investment
1) Subsidies for
production (China)
2) Subsidies for
usage (EU)
2) Tariffs (USA, EU)
CAGE framework: solar industry

20. Recommendations
Expand Capacity, Reduce Supplier Dependencies
• Demand continues to increase, as costs are reduced
and efficiencies increase
• Rapidly expand into new facilities that generate
needed capacity
• Invest into sunny regions with less government
interaction
• Acquire/Partner with silicon suppliers to reduce supply
shortages and obtain cost advantages

21. Recommendations
• Engage gatekeepers for new energy
infrastructure and government subsidies
• Advocate renewable energy and committing
resources to gain favorable outcomes

22. QUESTIONS?