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Strategy Formation & Implement_Assignment 1- First Solar (1)

Strategy Formation & Implement_Assignment 1- First Solar (1)

Q 1. Is the solar industry an attractive industry? Why or why not? Be specific. Use Exhibit 9 to calculate ROA, ROIC, and Porter’s Five Force Model to respond to the question2. From 2007-2011, First Solar was consistently more profitable than its major competitors: SunPower, Suntech, and Yingli. What are the sources of First Solar’s competitive advantage? Are they sustainable? Quantify where you can.3. Looking forward, what are the biggest threats to First Solar’s strategy? What recommendations would you make to Tymen deJong to guide First Solar?

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The technology of solar shows characteristics of oligopoly and players in a small number dominates it. The market of solar can be described with the model of Five Forces of Michael Porter. ROA (Return on Assets) = Net income/Total assets