Strategy and the Global Competitive Environment

The article discusses the solar energy industry in Australia, its market size, competition, and growth drivers. It also highlights the global competitive environment and the industry lifecycle stages. The article cites relevant sources for further reading.

Strategy and the
Global Competitive
Environment

Contents
Solar Energy Industry of Australia..............................................................................................................3
REFERENCES............................................................................................................................................4

Solar Energy Industry of Australia
The solar power in the Australia is the fast growing industry and because of the
technological improvement, low cost, increased social awareness and high efficiencies its
success is not driven. Rather it is as the consequence of being the adaptive industry which has
demonstrated that the solar power can be the best solution in order to overcome the world crisis.
As per IEA Trends in the photovoltaic applications, 2020 or solar power Europe, Australia has
positioned as the world leader in the solar energy (Hua, Oliphant & Hu, (2016)).There are
different competing firms in this industry in Australia which includes AGL Energy Limited,
FRV Services Australia Pty Ltd, Neoen Australia Pty Ltd, Wirsol Energy Pty Limited and many
others. These companies work in the oligopoly markets which are referred to as the one that are
dominated by small number of the suppliers.
The market size of the global solar energy is mainly segmented on the basis of
technology, component, application, region as well as marketing channel. The competition
among the companies has been risen among the manufacturers with development in the
photovoltaic based power distribution systems. The key driver of this industry is fluctuations in
the price of silver that is the major raw material in the solar module which drives the demand for
the installation of the solar panel and also assists in the market growth of the solar energy (Lan
and et. al., (2020)).
Geographically, the market scope of solar industry is that the emerging economies like
Japan and China has increased the production of the solar technologies significantly, owing to
the governmental tariffs as well as merger and acquisition of the local manufacturers. Then
North America as well as Europe focuses majorly on the researches in order to maximize solar
potential and Africa and Middle East has gained the traction owing to the increase in the
application of the solar energy for the agriculture, power generation and architecture (Powell,
Welsh & Farquharson, (2019)).
The industry lifecycle comprises of the four stages which includes introduction, growth,
maturity and lastly the decline. In context to solar energy industry, this sector is currently on
growth stage wherein the customers have come into the pace of having an understanding of the
new offering and the demand of it is also growing. The people have understood the value of the

solar energy and started to make consumption of it so this puts the industry into the growth stage.
Its growth is driven by different factors such as increase in the environmental pollution as well as
provision of the government tax and incentives in order to promote installation of the solar
panels. As there has been significant growth in this industry over the last five years, the industry
revenue is mainly expected to grow at annualized 46.5% over five years by the year 2021 to the
total of $415.8 million (Solar Electricity Generation in Australia, 2021).
REFERENCES
Books and Journals
Hua, Y., Oliphant, M., & Hu, E. J. (2016). Development of renewable energy in Australia and
China: A comparison of policies and status. Renewable Energy. 85. 1044-1051.
Lan, H., and et. al., (2020). An evaluation of feed-in tariffs for promoting household solar energy
adoption in Southeast Queensland, Australia. Sustainable Cities and Society. 53. 101942.
Powell, J. W., Welsh, J. M., & Farquharson, R. (2019). Investment analysis of solar energy in a
hybrid diesel irrigation pumping system in New South Wales, Australia. Journal of
Cleaner Production. 224. 444-454.
Online
Solar Electricity Generation in Australia, 2021 [Online] Available Through
https://www.ibisworld.com/au/industry/solar-electricity-generation/14499/