Product details

The top management of EnGuang Solar, a Chinese Tier 2 solar panel manufacturer, faced a crucial strategic decision. Recent technological developments and manufacturing process improvements in the production of solar panels meant that higher efficiency monocrystalline panels could now be produced at a lower cost than previously thought possible, creating a potential opportunity for the company to increase its watt peak production without substantially increasing costs per watt. The company had historically exclusively produced multicrystalline panels and needed to make a decision whether to switch to mono panel production. Adopting the new technology would require a significant shift in the company?s raw material supply chain and a re-tooling of its manufacturing equipment. It also raised some challenging questions regarding what to do with existing multi specific inventories if the company decided to transition to the new technology.