Photovoltaic Business Model Analysis

This assignment provides a comprehensive analysis of a photovoltaic business, including financial statements, cash flow projections, and market research. The business model is analyzed over a period of four years, with projected cash balances increasing from $15,501 in 2018 to $9,324,444 in 2021. Market trends and competitor analysis are also included, providing insights into the photovoltaic industry.

DEVELOP A BUSINESS PLAN

Table of Contents
MAIN BODY...................................................................................................................................1
Business Idea...............................................................................................................................1
Description of product................................................................................................................1
Technology overview..................................................................................................................1
Goals and Objectives..................................................................................................................2
Market Research..........................................................................................................................2
Market Segmentation..................................................................................................................4
Target Customers........................................................................................................................4
Competitors Analysis..................................................................................................................5
Raising Investment......................................................................................................................5
Financial Forecasts......................................................................................................................5
REFERENCES................................................................................................................................8

MAIN BODY
Business Idea
The business idea is one of the crucial element when starting business for earning profits
and satisfying customers quite effectually. It can be analysed that business idea is to provide
quality photovoltaic windows which is useful technique for producing electric power by utilising
solar cells for converting energy from sun into flow of electrons by incorporating photovoltaic
effect in the best manner possible (Hatzl, S. & et.al., 2016). This will provide customer
satisfaction in effectual manner as quality product would be offered by Asad Photovoltaic Ltd.
This means that company would provide good amount of satisfaction to the clients by offering
them desired product at affordable prices.
Description of product
The photovoltaic window is a type of windows that are used on buildings be it homes or
commercial buildings for generating electricity from the sun is classified as photovoltaic panel
window. Traditional opaque solar panels effectively uses photovoltaic technique, by which they
capture energy in the form of light and then uses the same for generating electricity in the best
manner possible. Asad Photovoltaic Ltd will create fully transparent window which will produce
electricity similar as the solar panel does. The photovoltaic windows will enable high rise
commercial buildings situated in Azerbaijan for capitalising glass surface area for producing
localised and clean energy quite effectively.
The window will use nano particles termed as quantum dots capturing sunlight and then
converting portion having harmful UV radiation into harmless orange light that is again
redirected to window edges. It is absorbed then by high efficiency solar cells that are under the
protection of frame. Each of the photovoltaic window is wired into electronics that could be
converted into energy such as electricity and as a result, it can be utilised in commercial
buildings leading to increment in energy in the best way possible. It is much durable, efficient
and lifetime durability of glasses (Li, Liu & Zha, 2016). Manufacturing will be done for making
market ready product in effectual way. It will replace traditional transparent window and thus,
customers will be satisfied with ease.
Technology overview
The technology overview of product can be explained which will be fruitful for the
business in accomplishing goals in effective manner. The photovoltaic windows are quite
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reliable as it is evident from the fact that with one time installation of the product, it can
effectively avoid 2.2 million miles of CO2 pollution created by vehicles and it is more than 12
times in comparison to solar. Powerful and impactful performance is provided which is
engineered for outperforming rooftop solar by 50-fold. Moreover, it can be said that it works in
natural, shaded and indoor light with ease. One of the important technological feature is that it is
quite sustainable as it takes light energy from sun and any of the artificial sources which in turn
leads to provide more electricity in effective manner and reflecting away sun's heat up to a major
extent.
Goals and Objectives
The goal of Asad Photovoltaic Ltd is to effectively produce better quality of photovoltaic
windows for clients and enhancing their satisfaction level quite effectually.
Objectives
 To attain gross profit of 10 % from starting year of operational activities
 To offer superior quality photovoltaic windows for commercial users and making them
loyal towards brand.
 To become market leader in few years of operations and gain high amount of market
share
Market Research
The marketing research plays crucial role so as to attain good amount of profits by
providing desired products which are demanded by customers (Delgado-Sanchez & et.al., 2017).
If product is launched without conducting market research, it is obvious that product would fail.
Hence, it becomes extremely significant for Asad Photovoltaic Ltd to effectively conduct
research whether its product would be successful or not. Glass industry of Azerbaijan has been
analysed as it indulges the need of photovoltaic windows for use of the commercial buildings,
offices. One of the main motive of market research is that there is an absence of manufacturing
plant for glasses in the nation which will be fruitful for company as it will not face difficulty in
meeting profits.
On the other hand, it can be assessed that firm will be able to establish its position in the
market in effective manner. The tailored marketing mix for Asad Photovoltaic Ltd is prepared
below-
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Product-
The organization will provide photovoltaic windows to the commercial buildings, offices,
schools and homes as well. It means that firm will be able to accomplish goals in the best manner
possible. This will enhance company's position in effective manner as demand for the product
will be created by providing completely innovative one (Park & et.al., 2016). This will lead to
attainment of goals of firm.
Place-
It is one of the important element in marketing mix as location plays significant role in
attainment of more quantum of people and attention could be made. Azerbaijan's capital and
largest city, Baku will be the place where manufacturing plant will be located of Asad
Photovoltaic Ltd which would attain desired profits with ease. It is required that location of the
company's office and manufacturing should be situated in heart of city. Thus, Baku is chosen as
it has facilities such as transportation and easy access to customers would be made.
Price-
The price is another crucial element in marketing mix of the company as it needs to put
appropriate pricing strategy in order to attain attention of customers in the best manner possible.
It can be analysed since, Asad Photovoltaic Ltd is a start-up firm, market penetrating pricing
strategy would prove to be beneficial for it. This will be accomplished as prices will be quoted
lower than that of competitors so that maximum customer base could be gained in the best way
possible (Choi & et.al., 2018). Hence, due to this strategy, organization will be able to achieve
desired base of customers and after certain years of operations, it could raise prices for
accomplishing good quantum of profits.
Promotion-
It is required that product which is new to the market should be known to the customers
as without it, they would be unable to become aware of commodities offered by company. This
gives rise to promotion of items in effective manner. In addition to this, firm will use social
media channels such as Instagram, Facebook, Twitter which are highly used by people up to a
major extent. Moreover, advertisements on TV, newspapers will be used as well for attaining
customer attention. Hence, company will be able to accomplish goals in effective manner.
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Market Segmentation
The market segmentation means that company focuses on particular group of individuals
and offer goods in accordance to the demand so that it may be able to attain good amount of
profits with ease. It can be analysed that market segmentation of Asad Photovoltaic Ltd is
commercial buildings, offices and schools. These clients require photovoltaic windows for
generating energy from the sun's heat and using it in a productive manner. It means that
customers will be satisfied quite effectually as business will be able to provide them with
superior quality windows which will be durable for it and single time installation makes more
reliable option in place of traditional glass (Senatla, M., & Mushwana, 2017).
It can be assessed that firm will be able to attain good customer base in order to
accomplish desired goals and as a result, profits would be garnered once it establishes itself in
the market quite comfortably. This ensures that segmented market of Baku will be fruitful for
organisation in getting goals and objectives accomplished within short time period. Moreover,
after establishing in Baku, it would be able to expand in other cities of Azerbaijan leading to
attainment of goals in the best manner possible. Hence, company would gain good customer base
leading to achievement of goals.
Target Customers
The customers are to be offered with completely new and quality products so that they
may be able to attain satisfaction and become loyal in effective manner (Target Consumer:
Definition & Explanation. 2018). Asad Photovoltaic Ltd which will be starting its operational
activities in Baku by offering photovoltaic windows being produced and would be made
available to company in effectual way. It can be evaluated that main target customers of
company's product will be offices, schools which are commercial in nature as large offices
requires photovoltaic windows and it will be offered to customers for accomplishing profits with
ease. This product is completely new in the market and as a result, customers will be able to
accomplish stated objectives.
Target customers means that particular group of potential customers which will be
offered with new commodity. It implies that firm would be able to enhance its position in the
market and as a result, desired goals will be attained within stipulated time.
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Competitors Analysis
The competencies are part of the business which is required to be effectively analyse by
organisation so that competitive edge may be attained in a better manner. Asad Photovoltaic Ltd
will be starting its operations in Azerbaijan and it is required to assess glass industry of the
nation up to a major extent (Tsai & et.al., 2017). It can be assessed that organisation should make
analysis of competition prevailing in the industry so that well-structured strategies may be
implemented for outreaching and outperforming rivalries.
The rivals such as Karvan-L Group of company, Inter Glass are reputed glass
manufacturing companies based in Azerbaijan. However, it can be analysed that company will
be sold completely new product which is not offered by competitors. This clarifies that firm will
be able to capture the market and will overcome competencies in a better manner.
Raising Investment
Investment is required for establishing business in effective manner so that operational
and financing requirements may be met with ease. It can be analysed that equity shares will be
issued by the company and with the help of manufacturing would be placed and company will be
able to attain desired level of profits in effective manner (Zhao, Pan & Lu, 2016). Adequate
returns will be provided to the investors which will be beneficial for them and as a result, more
potential investors would be attracted in a better manner and larger investment will be
accomplished.
Financial Forecasts
Forecasted Cash flow statement
Particulars 2018 2019 2020 2021
Operating
activities
Net Income/
(Loss) -476021 1068717 3850415 6075310
Adjustments made
Depreciation 5000 10000 15000 65000
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Accounts
Receivable
(lncrease)/Decreas
e -49385 -241104 -597098 -854297
Stock
(lncrease)/Decreas
e 0 0 0 0
Other current
assets
(lncrease)/Decreas
e 0 0 0 0
Accounts
Payables
(lncrease)/Decreas
e 0 0 0 0
Other current
liabilities
(lncrease)/Decreas
e 0 0 0 0
Cash flow from
operating
activities -520406 837613 3268317 5286013
Investing
activities
Purchase of Plant
and Machinery -25000 -25000 -25000 -25000
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Selling of Plant
and Machinery 0 0 0 0
Cash flow used
in investing
activities -25000 -25000 -25000 -25000
Cash flow for
financing
activities -545406 812613 3243317 5261013
Financing
activities
Long term
borrowings
Change observed
in equity 600000 0 0 0
Cash flow from
financing
activities 600000 0 0 0
Opening cash
balance 70095 15501 828114 4071431
Increase/
(Decrease) in cash -54594 812613 3243317 5261013
Closing cash
balance 15501 828114 4071431 9332444
Interpretation-
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It can be assessed that firm will be able to generate effective cash balance over the next
years. This is evident from the fact that ending cash balance will be 15501 in 2018 which will
increase to 828114 in next year. Furthermore, it provides clarity that balance will be 4071431 in
2020 and will reach to 9332444 in 2021. Hence, it can be said that business will succeed in the
market.
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