Thispaper presents the financial and SWOT analysis of the SolarWindowCorporation. The essay will evaluate the factors that have determinedsuccess for the company and will also analyze the five forms ofcompetition and how the organization performs. A SWOT evaluation willbe provided, and various strategies will be recommended forSolarWindow Technologies, Inc.
Theorganization began in 1998 in Nevada with the name Octillion Corp.Ten years later, it changed its name to New Energy Technologies, Inc.In 2015, the company altered its name once more to SolarWindowTechnologies, Inc. their main function is to develop transparentcoating materials that can produce electricity using solar energy.They have two forms of technology that are trying to patent and arecalled SolarWindow and MotionPower (Cuce & Riffat, 2015). Throughtheir technology, they have been able to create window products thatare coated with transparent materials which can transform photoenergy to electric energy. On August 2016, they had already releasedseven different panels that will soon be commercially available. TheMotionPower technology uses the kinetic motion of vehicles to produceelectricity. The strategy is to harvest the energy used by vehicleswhen they have to slow down in certain areas such as traffic lights.The conversion of the motion energy to electric energy ensures thatthere is no loss of energy. However, their SolarWindow technology istheir most notable feature. The organization believes in clean andrenewable energy sources (Abu-Bakar et al., 2016). The rising trendwhere more people are concerned about the impact that they have onthe environment is a factor that will boost the financial performanceof the company. Nevertheless, SolarWindow Inc. faces competition fromorganizations that operate in the similar field.
Themain mission for SolarWindow Corporation has been to developsee-through glass windows that can also harness solar energy. Theywant to produce products that will create clean energy, befinancially lucrative and also they have to be good for theenvironment. This concept makes the company the first of its kind toenter such a field of manufacturing. Once they fully develop theirproducts for commercial sale, they are going to take over the market(Cuce & Riffat, 2015).
Thevision that the organization has is to install their products in over85 million detached homes in America and also in the commercialbuildings. The vision is the main motivation behind their operation,and every member of the organization works diligently towardsachieving it. The push has been instrumental in their creation of theradical solar windows (Cuce & Riffat, 2015).
SolarWindowTechnologies, Inc. prides itself in the people that work for and withthem. They have seven executive members on the board of directorsthat all work for the company. All these individuals are qualified indifferent fields such as science, engineering, and business. Theyalso have four other individuals that serve on the board as advisors.This combination of different minds that all have impeccablecredentials is a primary reason why the company is a leader when itcomes to innovation. Most of the other employs hail from differentfields and operate on contract terms. They bring different skills tothe organization and ensure the development of the products is of thehighest standard. Investors also provide the financial backing thathelps SolarWindow Company to continue in the research and testing oftheir creative products. All these stakeholders integrate to achievethe mission and vision of the entire organization (Abu-Bakar et al.,2016).
TheFive Forces of Competition
Tounderstand the forces of competition for SolarWindow Company, onedoes not only assess the existing rival corporations. There are fourother issues that affect the nature of competition and how theorganization under evaluation performs on each of the factors. Theanalysis is known as Porter’s Five Force Assessment. These forcesare threats of new entrants to the industry, the bargaining power ofsuppliers, the bargaining power of purchases, threat of substituteproducts, and finally existing competition from similar companies(Grant, 2012).
Threatsof new entrants – moderate
Thefield of renewable energy where SolarWindow deals with involvescomplex technology that is yet to be common knowledge. The barrier isstill high for other companies to start working in the same sector.However, as the technology continues to develop, more corporationsthat will be manufacturing similar products that generate cleanenergy are bound to appear. Also, many governments are leaningtowards preserving the environment by switching from fossil fuel toother cleaner sources of energy. The government support will ensurethat they are tax breaks for startup companies keen on manufacturingsuch products. Thus, SolarWindow Technologies, Inc. will face stiffercompetition as more organizations that have the same products will becreated (Grant, 2012).
Bargainingpower of suppliers – low
Eventhough the components that are needed to create the transparent glasswindows are complex and many, the suppliers do not have a lot ofbargaining power since there are many. Thus, if one particularsupplier jerks up their price, the company can easily switch to othersources. Still, once the solar window technology becomes mainstream,the demand for the parts needed to develop the products will increase(Grant, 2012). Suppliers will have a wider market, and theirbargaining power will increase. They will be able to determine theprice of their components. Until then, SolarWindow Technologies doesnot face any competitive pressure in relation to this factor.
Bargainingpower of purchasers – moderate to low
SinceSolarWindow is a technology that is mainly used by the company, theconsumers do not have much bargaining power. The corporation candictate the amount they desire, and the buyers will not have a say.However, as the technology develops and more companies begin toproduce the same items, the consumers will have more power over theprices. In the meantime, the SolarWindow Technologies, Inc. has themonopoly over its potential customers. Once they start to sell theiritems, they can take the advantage by setting high prices before theyare faced with more competition (Grant, 2012).
Threatof substitutes – high to moderate
Whenit comes to transparent glass windows, the pressure from substituteproducts is relatively high. If the organization charges far too highprices for their products, consumers might switch to other sources ofclean energy such as the traditional solar panels (Reale et al.,2015). Moreover, wind energy is also an upcoming form of generatingelectricity and may be an option for customers since it is muchcheaper. However, as the real estate prices continue to rise, windowsthat can produce electricity will be the most viable solution sincethey do not consume space. Solar panels and wind turbines requirevast amounts of land for the power produced to be applicable. Thisfactor will not create much competitive pressure to the organizationin the near future. Currently, however, it is a notable force (Realeet al., 2015).
Competitionamong existing rivals – medium
Mostof the competitors of this organization in the solar energy sector donot have the solar windows technology or have not publicly statedthat they produce such items. However, the rivals are also tryinginnovative ways of generating clean energy that also includes organicmaterials that are applied in the solar windows. Such companiesinclude Ubiquitous Energy, Solarmer and ONYX Solar (Reale et al.,2015). If any of these organizations perfects their products, theywill create stiff competition for the see through glass windows madeby this company. When SolarWindow Corporation begins the mass marketmanufacturing of its products, the technology will be obtained byother organizations as well. These companies are larger and have moreresources. They will likely manufacture cheaper solar generatingwindows that will affect the prices of the initial products. Thus,the rivalry in this sector is likely to increase in the future (Realeet al., 2015).
TheSWOT analysis looks into the strengths that the organization has, itsweaknesses, the opportunities that are available to it and alsoconsiders the external threats (Wang & Li, 2016).
Themain strength that the company has is its innovative SolarWindow andMotionPower technologies. The products that they are working on havenever been developed before. Once they release them, they are goingto dominate the alternative energy sector (Wang & Li, 2016).
Theglass windows are a transformational yet practical form of generatingelectricity. The coating on the glass panes is very thin that one cansee through them. Their ability to also produce electricity fromsolar energy will make the demand for the items increase once theyget into the market (Wang & Li, 2016).
Thesolar windows are applicable in modern times when land is a preciousasset and the architecture of most skyscrapers use more glass ontheir structures. The products from this company efficiently usespace while also creating energy (Wang & Li, 2016).
Themain intention for the clean generation of electricity is aimed atconserving the environment. There has been rising concern about theuse of fossil fuel to produce energy and the switch to cleaner waysof creating energy is the rising trend (Wang & Li, 2016).
Thecompany combines the skills and knowledge of people from variousfields of study. The mashup of brilliant minds has enabled it tocontinue being innovative creators, especially in the sector ofrenewable clean energy production (Wang & Li, 2016).
Thecompany is yet to make their products commercially available. Thus,they are barely making any income, yet their expenses continue toincrease (Wang & Li, 2016).
Thereis a rising demand for products that generate clean energy,especially when fossil fuels have accelerated the rate at whichglobal warming has taken place (Wang & Li, 2016).
Governmentsare more willing to invest in clean energy sources, and theorganization will likely receive relevant support to finalize theirsolar glass windows (Wang & Li, 2016).
Thereis minimal direct competition for their products and the threat ofnew manufactures is very low at this point (Wang & Li, 2016).
Othercompanies that are trying to develop different products that alsogenerate clean energy may succeed and offer competition for theproducts manufactured by SolarWindow Technologies (Wang & Li,2016).
Theprices of raw materials are expected to increase in the coming years,and the situation will make production to become more expensive (Wang& Li, 2016).
Asthe technology of the solar energy generation is improved upon, morecompanies that deal in the sector will be established. Theorganization will face more competition since the market will startto saturate (Wang & Li, 2016).
Otherforms of producing clean energy will be refined in future. Thesesources include wind power, geothermal energy, tidal energy andhydroelectric power (Wang & Li, 2016).
Recommendationsfrom the SWOT Analysis
Forthe organization to capitalize on their strengths and opportunities,they should quickly manufacture their innovative solar generatingglass windows. The action will give them a significant position inthe market due to the uniqueness and effectiveness of their products.The strategy will ensure that they will maximize profits beforecompetitors make the price of the commodity to reduce. The move willalso make the solar window brand to be renown by every consumer sothat after rival commodities are produced, the company will alreadyhave an army of loyal customers. The organization should alsocontinue upgrading their products so that they are not phased out bysubstitute sources of clean energy production. SolarWindowCorporation can also create a department that produces the rawmaterials needed in the manufacturing process. Eventually, when thecost of the items needed rises, they will have their source of thecommodities and they will not have to undergo further expenses inproduction.
Thefirst level that the organization should focus on to maintain theircompetitive advantage and profitability is by delivering qualityproducts to the market before any other organization does the same.As the products reach the consumers and they note how effective theyare, the company would have established a niche that most competitorswould not be able to occupy.
Theyshould also improve their marketing strategies by insisting on theadvantages of their products and the different areas of applicationfor them. These marketing process can combine communication via theInternet, use of conventional media such as television and radios,and even campaigns. Increasing the information outflow about thecompany and what they manufacture will create more awareness andeventually a larger market for their products.
Allstakeholders that are associated with the company can be informedabout the new strategic plan of maintaining relevance in the sectorthrough a general meeting. These individuals can be called for ameeting where the management of the corporation will tell them aboutthe new plans and how they are going to affect the performance of thecompany. The same information can be presented on the company’swebsite where the individuals that were unable to attend the meetingcan quickly access the information. Another approach can be toinclude the details of the plan in the organization’s annualreport. Every stakeholder can then be encouraged to support thecompany in whatever capacity to ensure that the plan is seamlesslyimplemented.
Thetwo corporate governance tools that are applied by the organizationare the internal mechanism and the independent audit.
Thisstrategy focuses on controlling various processes and actions carriedout by the employees of the company. The executive members of theboard of the organization regularly review their workers to ensurethat they fulfill their duties according to the set guidelines. Everymember of the board is in charge of different departments where theymanage. They usually make independent decisions and only consult withthe other directors in the event when a problem is extreme. Thesystem works well for the organization because the independenceensures that the work quality is not affected by any formality or redtape (Trong Tuan, 2012).
Thissystem operates through the use of independent assessors that analyzethe company’s financial statements and records. The advisorymembers of the board are the ones that select such firms and ensurethat the review of the company is free from any biases. The systemworks well because there are no instances of fraud or any malpractice(Trong Tuan, 2012).
Theleadership at the corporation is effective since it includesindividuals from different sectors to come together and fulfill acommon goal. The aspect where various departments can operateseparately enables the efficiency and creativity of workers toimprove. A recommended change in the leadership would be to includemore female members on the board since there is currently only one.The gender diversity will improve the management of the company(Trong Tuan, 2012).
Theorganization is outspoken about its responsibilities to theirstakeholders and investors. They provide regular reviews on theirprogress and performance. The financial audits are carried out byindependent firms that provide a clear image of the company. The CEOof the company is always forthright when addressing the shareholdersand never gives any false representation of their stand. The membersof the board also undergo several ethical reviews in a year to makesure that they govern the company in compliance with the regulationsand guidelines (Trong Tuan, 2012).
TheSWOT analysis of the company and also the competitive forces thatface it have shown that SolarWindow Technologies, Inc. is a companywith a great potential of dominating the renewable energy market.Once they begin selling their radical products, they will havesignificant returns from the venture.
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