Research: Integration of Johnson Solar Energy in Globalized Markets

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This report provides a comprehensive analysis of Johnson Solar Energy's integration within the context of globalization. It delves into the company's background, including its establishment in 2015 and its focus on solar energy solutions. The report examines the company's purchasing and supply chain management, outlining its global sourcing of suppliers, global procurement strategies, and the structure of its complete supply chain. It also explores Johnson Solar Energy's selling strategies, including target markets and locations, and various product marketing approaches like experience marketing, product catalog display, and differential marketing. Furthermore, the report highlights the company's purchasing and supply concepts and concludes with an overview of the key findings, emphasizing the importance of globalization, effective supply chain management, and strategic marketing for Johnson Solar Energy's success. The report also details the company's procurement stages and the crucial role of logistics in handling heavy equipment. The report also provides information on the company's suppliers in different nations and highlights California's opportunities in the solar energy market.
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Research on the Integration of
Johnson solar energy in the Context of
Globalization
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Table of Contents
1. Introduction..................................................................................................................................3
1) Research Background..............................................................................................................3
2) Research reason.......................................................................................................................3
3) Research status........................................................................................................................4
2. Model Analysis of Johnson solar energy Purchasing and supply chain Management................4
1) Johnson Solar Energy Company Concept...............................................................................4
2) Johnson solar energy company: Purchasing and Supply Chain Model...................................5
a. Global sourcing of suppliers....................................................................................................5
b. Johnson solar energy Global Procurement..............................................................................6
c. Complete Supply Chain...........................................................................................................7
d. Efficient Logistics Distribution Centre....................................................................................7
e. Supplier Quality Improvement Process...................................................................................8
3. Johnson Solar Energy Selling Strategy........................................................................................9
1) Target Market..........................................................................................................................9
2) Target Location.....................................................................................................................10
4. Product Marketing.....................................................................................................................11
1) Experience marketing............................................................................................................11
2) Product catalogue display......................................................................................................11
3) Differential marketing...........................................................................................................11
5. Johnson Solar Energy Purchasing and Supply Concept............................................................11
6. Conclusion.................................................................................................................................11
REFERENCES..............................................................................................................................12
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1. Introduction
1)Research Background
Globalisation is referred as connection of various parts of world into single market in order
to expand business at global level in terms of political, cultural and economic activities
(Adepoju, 2020). This is the movement as well as integration of people, good, process, services
among various countries. Globalisation plays an effective role in growth and success of business
at competitive market to gain positive outcomes. Economic globalisation has made business to
speed development, realise their integration of resources and changing towards supply,
production and marketing. For survival and sustainability, it is very important for business to
adopt global procurement and use strategy for reducing production cost, supply chain and finding
proper marketing needs of customers to influence them. The example of Johnson Solar Energy is
taken which want to enhance their profits as well as sales by using supply chain management,
logistics and so on. With rise in globalisation, multinational companies are becoming powerful to
supply their products and services throughout world and increasing their sales and profits by
using different operations, strategy, logistics and many more. They have to use high quality
marketing strategy to increase their market size and grow at competitive market. In context of
globalisation, integration plays an important role to connect world into single market and fulfil
need and demand of consumers in effective and efficient manner.
2) Research reason
The main reason for research is to fulfil need and demand of consumers living in society.
Globalisation took place in 19th century where large numbers of business are connected to single
market and fulfils requirement of organisation and society (Bauer &et. al., 2017). In context of
solar energy business, they are largely dependent on government subsidy which is possible by
expanding current business at international level to get some benefits and expand existing
enterprise in effective manner.Research has done to know about condition of solar energy
business at globalisation level. For this, proper supply chain management process, product
marketing strategy and others should be performed to reach to large number of business. Solar
energy uses different types of equipment such as power, battery, generator and others which has
to be made or imported through process of supply chain management. Johnson Solar Energy
Company has great opportunity at California, as it provide nation in electricity generation from
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different non-hydroelectric renewable sources such as wind power, geothermal and solar
power.This will help at globalisation level and make easy for production, supply chain
management, product marketing. Therefore, main reason for research is to expand business of
Johnson Solar Energy and fulfils requirement of people with help of globalisation in an effective
and efficient manner.
3)Research status
From the research, it has found that California has great opportunity in terms of solar energy
as it contributes 64% more cost effective than other part of world(Bergek &et. al., 2015). It is
leading nations in generation of electricity from non-hydroelectric renewable energy sources that
includes solar, geothermal and wind power. California has aggressive renewable energy goals in
U.S. This research will provide information regarding supply chain and purchasing capacity at
globalisation. It is very important for business to survive and sustain at marketplace by
expanding enterprise in different parts of world. In case of solar energy, there is requirement of
heavy size machines, equipments, parts which is possible through supply chain management.
Logistics company focus on providing expertise in handling heavy equipments to respective
place in most effective manner. This is very essential for solar energy company to focus on using
of high marketing, production, operation and logistics strategy to cover large market and fulfils
their need and requirement. Therefore, research status helps in knowing about globalisation of
solar energy company and their benefits to business in best manner.
2. Model Analysis of Johnson solar energy Purchasing and supply chain
Management
1) Johnson Solar Energy Company Concept
Johnson Solar is privately held company which was established in 2015. This is renewable
and environment industry whose headquarters is La Mesa, California (Binita, Shepherd &
Gaither, 2015). It is specialties in solar electric, solar energy, residential solar, design, EV
chargers, Battery Storage, solar power, Honest, Reliable Service, fast, honest, reliable service
and others. This is new start up which want to expand their market in different parts of world. It
is possible if they have effective supply chain management and purchasing model to deliver
products to consumers within given time period. It is very important to use proper strategy and
plan so that positive results are attained. Johnson Solar Energy wants to design high quality
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product in terms of solar by using premium batteries, generators. It want to provide global
warehousing as well as trade finance capabilities for creating of differentiated value to manage
long term material supply agreements. This is liable for global procurement of purchasing raw
materials from different parts of world and combine together to manufacture solar energy. They
provide this to sales and distribution team and complete work. All departments working for
manufacturing of different products and services and provide to final consumer. Globalisation
leads towards success and development of business in short time period so that final goal and
objectives are attained.
2) Johnson solar energy company: Purchasing and Supply Chain Model
The respective organisation is small company which has to enhance their business at global
level in field of solar energy in best possible manner (Cooper, Johnson & Michaan, 2016). It is
very important to use proper purchasing as well as supply chain model to get positive results.
They have to use efficient logistic distribution centre and service quality improvement process so
that they fulfil requirements of their consumers in best possible manner. This section covers
different aspects in terms of global sourcing of suppliers, global procurement, complete supply
chain, logistics distribution centre and supplier quality improvement process. They are described
below:
a. Global sourcing of suppliers
There are large numbers of equipments which are required for solar energy which includes
inverters, micro inverters, central inverters, racking systems, ballasted roof mounts and ground
mounts (Darmani, Arvidsson & Hidalgo, 2016). The suppliers of solar energy are available at
global level so all organisations running such types of business can easily get equipments for
functioning of enterprise. In context of the United States, suppliers are Auxin solar, global solar
energy, first solar, Itek energy, seraphim, solaria, mission solar and many others. California is
getting tariff in manufacturing of solar energy at marketplace. Raw materials of Johnson Solar
Energy Company are purchased from different nations and then supplied to various centres
where there are requirements of such solar energy. The purchasing as well as marketing methods
and suppliers evaluation includes low prices, providing high quality goods, time delivery and so
on. While buying products from suppliers, respective company want environmental protection
goods which should not harm anyone in any manner. Johnson Solar Energy Company is
distributing in different parts of world as there is high requirement of solar energy products and it
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is specialised in different category. From different parts of world, it is taking raw material and
producing products in most effective manner. In current scenario,Johnson Solar Energy
Company has more than 100 suppliers in 10 countries across nation.
b. Johnson solar energy Global Procurement
Procurement is defined as procedure of getting products, services and materials which is
required by company (Herweijer &et. al., 2018). This is the way to abstract something which is
required to business in an effective and efficient manner. The procurement requires five pillars
which includes value for money, accountability & reporting, equity, open and effective
competition and ethics as well as fair dealing. It is very important for Johnson Solar Energy
Company to analyse their need and requirement in most effective manner so that goal and
objective should be achieved. They have to make procurement strategies which are long term
plan to cost effectiveness in order to acquire necessary supplied from appropriate vendors for
delivering of high quality products, biding purchasing terms and quality goods and so on.
Johnson Solar Energy Company has global procurement where some steps are required which
need to be followed in most appropriate manner.
The first stage is assessing needs and opportunities where government municipalities as
well as agencies consume huge amounts of energy (The solar power procurement journey,
2020). Second are analysing compliance issues where respective organisation has to make plan
as per policy and requirement of business and people. Third is assembling team where business
has to make expert team to convert process of solar energy into most effective manner. It is very
important stage of procurement of solar energy which helps in making project successful and
effective at marketplace. Fourth stage is arranging site where Johnson solar energy has to obtain
or lease energy from private or public sector and install at their place in most effective manner.
Fifth stage is acquiring financing as well as contracting with whole process of procurement.
There are many finance as well as contracting are provided by government in terms of
procurement process of solar energy.
Sixth stage is ownership of solar system which is government agency that focuses on
purchasing as well as installing solar PV array and needed facility in order to cover all types of
cost, equipment, equipment, ongoing operations and maintenance (Huber, 2016). Seventh step is
power purchase agreement where solar energy will perform partnership with private bodies and
make solar energy procurement project. Eighth is energy savings performance contract which
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mainly focus on saving of solar energy which helps to conserve as well as efficiency upgrade all
facilities in best possible manner. Ninth is utility energy services contract which is made while
installing solar energy to any place to provide them with free services for particular time period
in most effective manner. This will help to undertake installation as well as long term
maintenance of solar system and provide benefits to users in most proper way. Therefore, these
all are the procurement stage of Johnson Solar Energy Company which should be followed by
them in appropriate manner to provide products as well as services. This will help them to know
about requirement of solar energy at marketplace and accordingly installation or providing
different types of energy to them.
c. Complete Supply Chain
Supply chain management is a procedure that is used by companies in order to ensure
whether supply chain is cost effective as well as efficient (Iheanacho, 2018). It is defined as
collection of stages which are taken in order to convert raw materials to final product. This
includes different activities such as refining, farming, manufacturing, design, packaging and
transportation. It is very essential for Johnson Solar Energy Company to have components of
SCM which includes planning, source, production, transportation, information, inventory,
location, return of goods. Respective company has supply chain in terms of supplier, customers
and company. This is essential to know about their supplier and provider and accordingly
manufacture products in an effective manner. It is important to considered four elements of SCM
such as integration, purchasing, operations and distribution. The supply chain processes of solar
energy are: getting raw materials, ingot, water mfg, solar cell, solar module, solar panel and
installation. Johnson Solar Energy Company has to follow all activities of SCM for installation
of energy at business or organisation in an effective and efficient manner so that goal and
objective are attained. It is important for all types of business to have proper SCM in their
organisation to manufacture high quality products and services. For example, if household
requires installation of solar energy then respective organisation has to focus on installing it in
most proper way and provide them with different facilities in terms of free services and
maintenance.
d. Efficient Logistics Distribution Centre
Logistics is defined as process of management of information of transportation from one
place to another (Jeong, 2017). This is management of flow of things from origin point to
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consumption in order to meet requirements of corporations or consumers. Similarly, logistics
distribution is also sales or transport logistics which is link among market as well as production.
This area comprises all types of processes which is involved in distribution of goods from
manufacturing business to customers. Here, customers are final distributors, processes and
customers. The logistics distribution centre is supply network which is used for storing of
products, creating, assembling shipments and others. It is very important for Johnson Solar
Energy Company to have efficient logistics distribution centre in order to supply their products
as well as raw materials to final consumers.
Respective organisation has supplier in different places so they need to supply their solar
energy equipment to that place for their consumers (Johnson, 2017). Logistics should be of high
quality as it is essential to get products to consumers whenever they have asked. This helps in
rise in brand value and goodwill at competitive marketplace in most effective way. Most of the
business has same types of logistics distribution centre. In order to be effective logistics
distribution, three main area are required they are warehouse management, transportation
management and order fulfilment. Distribution logistics assist businesses for redesigning process
as well as customer service organisation in an effective manner. It also includes inbound
warehouses; outbound distribution management centres and cross checking. Johnson Solar
Energy Company has to make proper changes in their logistics distribution centre so that they
can reach to final consumers without facing any problem or difficulty. For solar energy business,
logistics play an important role in order to achieve goal and success of organisation.
e. Supplier Quality Improvement Process
Quality is regarded as life of any organisation for surviving and sustaining at competitive
market (Johnson, 2017). It is very important for organisation to make their employees skilled and
capable to work together and participate. As working staff can think, learn skills, improve ability
and participate in both management of equity as well as production in an effective manner. This
is very essential for Johnson Solar Energy Company to focus on improvement process. Supplier
of solar energy has to focus on quality improvement process for their user, business and
organisation so that they provide high quality equipment and machines in most effective manner.
The process of quality improvement includes planning strategy, developing & testing strategy,
monitor strategy and reassesses and respond. In order to survive and sustain at market place by
suppliers of solar energy situated in different parts of world, it is very essential to follow quality
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improvement process. They have to take feedback from consumers on daily basis and
accordingly improve their quality. As consumers prefer high quality products and ready to pay
prices. This is essential for Johnson Solar Energy Company to fulfil requirements of their
consumers by following quality improvement process in their business in most effective way.
Also, supplier improves quality control through different ways such as: getting accurate product
specifications, writing complains to vendor, establishing good relationships with vendor, using
vendor scorecards at time of review process, setting up remedy & correction procedure, pushing
compliance system and hiring outside expertise if required. Therefore, solar energy has to
produce high quality of batteries, cells, generators and others for their users in most effective
manner for users.
3. Johnson Solar Energy Selling Strategy
It is crucial for Johnson Solar Energy Company to make proper selling strategy for their
products and services to sale them to consumers in most effective manner (Johnson & Boersma,
2015). This helps them to enhance their profits and sales margin along with rise in value and
goodwill. The strategy of every business is different from one another for maximum gain so that
positive results are attained. Selling strategy are defined as approach which allows business’s
sales to position their products as well as company through targeting consumers in meaningful
and differentiated way. Through selling strategy final product is reached to consumers in most
diligent manner. It is very essential for respective organisation to make good selling strategy for
maximum benefits. Under selling strategy, they create awareness among consumers regarding
products, services and brand. There are five selling strategies which can be adopted by solar
energy which includes knowing product, showing, understanding target consumers, pricing
competitively and getting referrals from existing consumers. The loyal and regular consumer
plays an effective role in selling existing products among new consumers. Therefore, apart from
these, Johnson Solar Energy has adopted two different selling strategies which include their
target market and target location for easiness. They are described below:
1) Target Market
Solar energy is required by all types of people living in society for their household,
business and other purpose (Johnson & Turner, 2015). Johnson Solar Energy Company is
specialised in manufacturing in different types of products and services for their users. As
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respective organisation follows principles of providing high valued products and services to
consumers at reasonable prices so that large number of people will attract to company and their
products and services. The providing of value to consumer is main benefits of organisation
which lead it to make success and growth at competitive marketplace. Respective organisation
has targeted different neighbouring countries and people, organisation for buying of products and
services. It is essential to make selling strategy in terms of target market. Here, solar energy has
focused on target market which includes all people between 18 to 50 and organisation having
profit margin of $1000. The products are manufactured and assemble according to requirements
of target market to fulfil basic need and demand of consumers.
2) Target Location
It is defined as place to whom consumers are targeted or location in which products will be
sold (Johnson, Simmons &Sullivan, 2017). This is very important for Johnson Solar Energy
Company to make selling strategy for their targeted location in most effective manner so that set
goal and objectives are attained. Target location has to decide after doing proper analysis of
market so that business will maximize their products and services. The respective organisation is
new in market and operating their business activities and operations at California so it has to
target new by areas or local market. For this they have to make proper selling strategy through
creating awareness among consumers regarding selling of their products and services in best
possible manner. In context of Johnson Solar Energy Company, target locations are their general
public and children which are described below:
a. The general public
These are the general public who wants to buy products and services of respective
organisation (Kopnina & Blewitt, 2018). They live in society and using required goods in best
manner. In case of general public, goods manufactured by Johnson Solar Energy Company are
high acceptable due to innovative style and design used by them. They are provided with large
number of options and from there they can chose any and use in their house. Solar energy is
designed by using different equipment like power, cell and other and assembles to form single
power for users. Also they can take ideas from general public regarding selling their products
and services in proper way at marketplace so that large numbers of consumers are influenced.
Therefore, general public helps in enhancement of market share, profits and sustainability at
competitive marketplace and attain set results.
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b. Johnson solar energy for children
The children have their own taste and preference regarding products and services. They
like new, trendy and latest type of design which feels them happy and comfortable (Livingston
&et. al., 2020). In case of Johnson Solar Energy Company, it has to use selling strategy for
children to attract them and they force their parents for installation of solar energy at place. They
have to make sophisticated marketing strategy for their children market so that they can enhance
their sale and productivity. While selling, they have to make plans, strategies and policies to
avoid issues. In addition to this, current selling strategy target people’s requirement and focused
accordingly to fulfil their need and demand in most effective manner.
4. Product Marketing
Product marketing is the process of promoting products or brand to the customer in the market.
Product marketing is base on the three major things
Demand: what are customer looking for?
Product: what do you do best?
Competition: how are you different?
These 3 points are depends on market opportunity, market fit, market relevance (Macalalag Jr,
Johnson & Lai, 2017). For the marketing of products the management should set the relationship
between the product and the customer, while settling the relation they ales seek the future
prospect and also settle the goal. It is important for an business firm to do marketing of their
offerings for attracting customers in effective manner as well as also for enhancing sales and
profitability. There are several ways of doing product marketing explanation of these in relation
of Johnson Solar Energy Company are as follows :-
1) Experience marketing
Experiential marketing is strategy which engages consumers who are using branded
experiences. In simple term it can be said that, experiential marketing is that which engage
customers as well as their real life experience that they remembered. Such marketing practices
focuses on getting consumers to experience the brand. Experience marketing is one of the
traditional way of promoting product within market area, helps in improving popularity of
products and enable consumers in recognizing as well as accepting new products (O’Lear &et.
al., 2020). In addition to this, experiential marketing will give new perspective for industry
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marketing within latest consumption trend. Adoption of experimental marketing results in
changing behaviour of consumers as well as also solve problem related to environmental
adaption of traditional marketing model. Johnson Solar Energy Company uses current rising
experiential marketing strategy. Respective company is taking feedbacks from their customers
which help them in attracting existing as well as potential customers in more effective manner.
Because reviews of all existing customers play important role for an business firm in more
effective manner.
2) Product catalogue display
It is also main chain through which company can communicate with their consumers
beside display space (Regneală, 2015). For Johnson Solar Energy Company product catalogue is
important because in this they can display customers in what manner solar plates will impose for
generating solar energy. With the assistance of product catalogue display respective company
will be able to attract large number of people towards their offering in effective manner. In
simple term it can be said that, catalogue marketing is simply direct marketing which not take
play through marketing intermediaries, the utilisation of direct marketing channel for delivering
product and services to customers. Moreover, it is essential for respective solar energy company
to design attractive catalogue of their offerings because it will help them in attracting large
number of customers in appropriate manner. Along with this, it will be suitable for organisation
to present offerings to customers in better manner. Such practices result in increasing sale of
company which is along with their growth and profitability. Thus, product catalogue display is
most suitable strategy of product marketing for Johnson Solar Energy Company.
3) Differential marketing
The Differential marketing is a strategy of marketing which use to target at least two
market or target groups. The Differential marketing contains concentrated marketing and
undifferentiated marketing. It is also known as multi-segment marketing. In social economy
several developments has taken place which also result in improving level of consumption
(Scholten & Bosman, 2016). Now a day’s consumption is no longer satisfying basic standards as
well as popular demand but present diversification, individualisation, refinement and so on. It is
important for organisation to implement different marketing strategy as well as model within
their working in relation of distinct target markets. This simply means that along with traditional
marketing techniques it is important for business firms to implement modern marketing practices
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