Borrego Solar Company: Porter's Five Forces and PESTLE Analysis

This report offers a comprehensive analysis of Borrego Solar, a U.S.-based solar energy company. It begins with an overview of Borrego Solar and the broader solar power generation industry, emphasizing its contribution to renewable energy and environmental sustainability. The report then delves into market analysis, considering both developed and emerging markets, with a specific focus on Australia and India. Porter's Five Forces are applied to assess the competitive landscape, while PESTLE analysis examines political, economic, social, technological, legal, and environmental factors influencing market entry. The analysis includes recommendations for addressing PESTLE issues, improving manufacturing processes, and leveraging technological advancements to gain a competitive edge in both developed and emerging markets. The report concludes with strategic recommendations to enhance Borrego Solar's market position and facilitate successful expansion into new territories. The report draws on various academic sources to support its findings and recommendations.

ANALYSIS OF BORREGO
SOLAR COMPANY
Name of Student
Name of University

OVERVIEW OF BORREGO SOLAR
 The domestic company in U.S. is Borrego (SolarKlein &
Coffey, 2018).
 Company produce commercial power from renewable
sources.
 Growth of Borrego Solar in the year 2016 is 76%
(Borrego Solar, 2019).

OVERVIEW OF THE PRIMARY
INDUSTRY
 The company belongs to the solar power generation industry
which generate power from renewable resources (Twidell &
Weir, 2015).
 The industry help the environment to remain green.
 Mainly allow the people to get power service at a more
cheaper rate.

MARKET OVERVIEW
 Australia market is one of the developed market that
can chosen by Borrego to enter for increasing its
production
 The contribution of the renewable sources of energy is
49% to the total production of power within the year
2030 (De Sisternes, Jenkins & Botterud, 2016).

ANALYSIS OF PORTER’S FIVE FORCES
OR DOMESTIC COUNTRY
 Competitive Rivalry- 17% of electricity generation was from renewable
energy sources and the competition is less.
 Supplier power- The source of raw materials is natural and hence do not
depend on the supplier.
 Buyer Power- Huge demand due to less price.
 Substitution threat- The substitution threat is high because power is
generated from many other sources in large quantity.
 New entry threat- The U.S market is a developed market and the business to
enter the market is not easy

PORTER’S FIVE FORCES FOR THE
INDUSTRY TO ENTER DEVELOPED
MARKET.
 As it a developed market and there is 16 MW power generation from
the other sources in that country. Therefore the industry will have
many competitors
 There many potential supplier in the market of Australia that can
provide them product and services.
 The industry have many buyers as they offer their product and
services at a very minimal cost.
 Though there are many industry that produces and generate power but
these industry generate power with the help of renewable source that
do not affect the environment.
 The major threat of substitution of Australia’s solar power generation
include Jemena, CitiPower and Powercor Australia, AusGrid, The
Endeavour Centre, Horizon Power, Western Power, , Aurora Solar
Inc., SA Power Networks, Essential Energy and Ergon and many
more.(Anderson & Sutherland, 2015).

PORTER’S FIVE FORCES ANALYSIS FOR THE
INDUSTRY TO ENTER AN EMERGING MARKET OF
INDIA
• Few rivals of the solar energy manufacturing
industry.
• There is no need of the suppliers in these
types of industry as they uses renewable
sources that are easily available (Bhaumik,
Driffield & Zhou, 2016).
• Low cost attract many customers (Meyer &
Peng, 2016).
• power is generated by many industries in the
emerging market of India (Korinek, 2018).
• In the emerging market there are several new
industries that are setting up in the market.

PESTLE’S FORCES

PESTLE’S FORCES THAT THE
INDUSTRY FACE IN THE U.S. MARKET
 The development in the market of Abroad can have an
affect on the market of U.S.
 The market of U.S thus offers a huge opportunity to the
industry.
 The culture, demographics and lifestyle of the people in
U.S. provide several opportunities to the solar energy
production industry.
 Technology can be used to increase the productivity scale
of the industry.
 Power by using the renewable resources and do not
hamper the health and the safety laws.
 The industry do not affect the environment and generate
power in by keeping the environment clean

PESTLE’S ANALYSIS FOR THE
INDUSTRY TO ENTER A DEVELOPED
COUNTRY
 The tax and the employment laws that are there in the
country do not affect the industry while entering (Boyce,
2016).
 The country offer several trading options to the
manufacturing industry.
 The industry will be suitable to the lifestyle of the people
living in Australia(Friedrich, 2016).
 The manufacturing of power using renewable sources
industry will get a lot of scope there (Deng & Yang, 2015).
 The health and safety laws, consumer laws will not get
violated by the industry entering the market and hence it
provides huge scope
 The manufacturing of power by using the renewable
sources will not affect the environmental laws

PESTLE’S ANALYSIS FOR THE
INDUSTRY TO ENTER AN EMERGING
MARKET OF INDIA
 Political factors that are there in the emerging market are
trade regulations and tariffs.
 An intervention of government in the free market and that
can affect the industry (Deng & Yang, 2015).
 The structure of the class, hierarchy and power of the
society in the country can affect the industry.
 The advancement in the technologies of the emerging
market funds the competitors of the industry that can
have an adverse affect in the profit scale (Nadtochy et
al., 2016)
 The legal factors that are there in the country do not
affect the growth of the industry (Bakirtas & Akpolat,
2018).
 The industry is environment friendly and thus do not have
any affect in the environmental laws.

ADVANTAGE OF THE COMPANY TO
ENTER DEVELOPED MARKET
 In location, natural resources are the
strength of the Australia market that can be
useful for Borrego solar.
 A diverse economy help to increase its
demand.
 high-quality public education also enables
scope to the company.
 Institutional and political stability of the
country allow several competitive advantage.