First Solar Inc Analysis - Case Study Example

With the system part of the segment, the company can produce several PV solar power for large projects for commercial purposes. The projects that the company can supply the systems can be engineering projects, procurement, and construction project (EPC), and the Operating and maintenance project (OM). Sometimes the company can offer the services to the finance projects at rare grounds. It is 1990 that the company was created. Later the company produced its first commercial product in 2002 (First Solar, 2013). As compared to other Photo-voltaic competitive companies, First Solar is the first company to offer a low-cost service offer. In 2008, it was considered to be the best low-cost offering company that charged a manufacturing cost of $1 per watt. The company was able to come up with the first module that was the most comprehensive recycling program in the PV field. The company later attained a footprint of Carbon that had the best energy period in technology based on the life cycle basis. The company launched its first IPO in 2006.

The major problem facing First Solar company is that by the year 2013, the company had a value of $4.3 billion and a stock of $49 per share irrespective of the company’s tremendous results in the previous years. Particularly in 2008, the company made a value of over 27 billion with a share of $311 each. As a result, there has been a sagging stock price with the company’s gross margin dropping by 25%. The downfall actions were also experienced since the company replaced all the staff bringing in a new lot, most of the German manufacturing operations being closed, all the output elsewhere being closed and 25% of the workforce shut down. What could have been the main reason for shutting down the company’s shining dreams as portrayed in the previous years especially in 2008? (First Solar, 2013).

The Solar market in Europe tends to slow down due to the renewability of the energy products while outside the United States there is a strong market for solar energy. Examples of the countries with high-demand markets are Germany and France. The company is very geographical by the fact that it is diversifying overseas. The first agenda for the company is to hunt for new markets. The company also focuses on the progress and future of a country before diversifying its market in the country.