November 18, 2013
Peter Oburu, PhD. Economic Analysis of Solar Clean
The following economic analysis for Solar Clean provides a scorecard of internal conditions and external influences that outline potential benefits and disadvantages of the viability of this company. Through a detailed analysis of the market structure, elasticity of demand, finances, pricing strategies, and barriers to entry, informed decisions on future growth and viability of the company are accessible. Growth comes from a carefully planning and flawless strategic execution with the current data and analytics contained in the economic analysis of this business plan.
The …show more content…
Nonpricing Strategies that Increase Barriers to entry
Nonpricing strategies that increase barriers to entry for Solar Clean include keeping current with the customer needs and demands. Technology is changing at a rapid pace in the solar industry and meeting the changing needs of the customer is vital. Solar Clean must also partner with all solar panel producers so that their services are competitive, superior, and turn-key. Solar clean must be able to facilitate customer referrals, exhibit ethical, and competent selling practices while cleaning and servicing the panels on time, on budget by qualified personnel. In the short-term, Solar Clean can increase advertising and work with government subsidies and policies. In the long-term, understanding the needs of the customer to consistently and competitively keep the prices low and the panels as efficient as possible is ultimately what will increase the sustainability of the company.
The barriers to entry for Solar Clean include the brand awareness, intellectual property, customer loyalty, exclusive agreements, and government restrictive policies. Researching, identifying, and addressing these tactics will allow Solar Clean to create a competitive strategy so they will be able to address any competitor’s entrance into the marketplace. Research is the best method for understanding and working with the