Canadian Solar is a solar PV module manufacturing Canadian multinational company. Shawn Qu started the solar panel manufacturing business in 2001. Today, we’ll discuss the SWOT analysis of Canadian Solar; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Canadian Solar
- Photovoltaic system
- Modules of photovoltaic
- Off-grid solar home system
- Solar power systems
- Solar modules
Industry Focused Area of Canadian Solar
- Photovoltaic industry
- Renewable energy
Statistical facts and figures of Canadian Solar
- Annual revenue: 7.47 billion USD (2022)
- Net income: 147 million USD (2022)
- Employees: 13478
Competitors of Canadian Solar
- Sun Power
- Yingli Solar
- JA Solar Holding
- Risen Energy
- Solar Holding
- Jinko Solar
- HanWha Q Cells
- Trina Solar
- First Solar
The SWOT analysis of Canadian Solar would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Canadian Solar SWOT analysis as a business strategy analysis example company as follows;
Strengths of Canadian Solar
Some of the main internal strengths in the Canadian Solar SWOT analysis example company as business strategy analysis are as follows;
Large Network
Canadian Solar is one of the world’s leading solar panels and solar voltaic cell manufacturing companies. The company has production facilities in China, Brazil, Indonesia, and Canada. The large network of production and manufacturing factories and large customer markets help the company target various segments of the customer market.
Research & Development
Canadian Solar invests a significant amount of capital resources in research and technological development. It allows the company to develop efficient photo voltaic cells in terms of quality, power, strength, and durability. Any type of latest development would help the company to gain a competitive edge in the solar panel market.
Acquisition
Canadian Solar successfully acquired Recurrent Energy from the Sharp Corporation in 2015. The acquisition and strategic alliance help the company to increase the customer market share, and revenue, and remove the competition from the market.
Economies of Scale
Canadian Solar is the largest solar panel manufacturing company; it led the company to launch mass-scale production and manufacturing operations to keep up with the customer’s demand. The economies of scale operations help the company to decrease the per-unit cost and increase the company’s profitability.
Strong Finances
Canadian Solar has a strong financial position. According to an estimate, the company has an annual revenue of over 7 billion USD in 2022. The strong financial backing helps the company to take on various types of innovative research projects.
Weaknesses of Canadian Solar
Some of the main internal weaknesses in the Canadian Solar SWOT analysis example company as business strategy analysis are as follows;
Limited Suppliers
There are limited suppliers of quartz and other rare earth materials used in the production and manufacturing of photovoltaic cells. The limited availability of raw materials and supplies would jeopardize and reduce the production capacity of Canadian Solar.
Lower Diversification
Canadian Solar has been heavily relying on photo voltaic cells as its main sources of revenue and profitability. High dependence on one item as the main source of income and revenue is not a good marketing and business strategy for the company.
Opportunities for Canadian Solar
Some of the main available opportunities in the Canadian Solar SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Canadian Solar should expand its customer market in new regions, markets, and countries across the world. The renewable energy market holds great growth potential in the developing markets, and market expansion would bring a lot of growth opportunities to the company.
Portfolio Expansion
Along with market expansion, Canadian Solar should expand its product portfolio by developing complementary products like wind turbines and batteries. These items go hand in hand because the customers would require batteries to save energy for the night.
Strategic Alliance
Canadian Solar should acquire other solar energy companies. The strategic alliance, partnership, and joint venture would help the company to develop new products, achieve technological breakthroughs, and enter new markets.
Threats to Canadian Solar
Some of the main potential threats in the Canadian Solar SWOT analysis example company as business strategy analysis are as follows;
Tough competition
Canadian Solar is facing tough competition from competitive brands like Sun Power, First Solar, and Trina Solar. They all have established a strong market position and their market presence is negatively impacting the growth rate and sales of the company. This is because the customers could easily switch to another competitive brand.
Currency Exchange Fluctuation
Canadian Solar procures rare earth material for the production of photovoltaic cells. The currency exchange rate fluctuation would negatively impact the production cost and increase the expense. A small increase in retail price makes customers switch to other competitive options.
Conclusion: Canadian Solar SWOT Analysis Example Company |SWOT Analysis of Canadian Solar |Business Strategy Analysis
After an in-depth study of the swot analysis of Canadian Solar; we have realized that Canadian Solar is the world’s leading solar panel manufacturing company. If you are learning about the Canadian Solar SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
