The paper "Market Growth of Solar Panels" is a perfect example of a Marketing Case Study. The Australian energy market is going through a rapid change in its structure, which is now controlled by the technology factor, the preferences of customers and the change in the price. Ten years back coal and gas were the sources of energy in Australia, but now renewable has taken over the market. Due to renewable, the residents are consuming lesser electricity and the prices of electricity and gas are declined remarkably. For commercial and household purposes, renewable finance providers and suppliers are creating different designs of solar panels on different price range.
The cost of renewable energy is falling day by day, there will be a time when there would be an end to the grids. For such future prospects, companies who are designing solar panels must think upon their business models. The market opportunity identified in this report is renewable i. e. Solar Panels and now the situation analysis of this opportunity will be studied. Situation Analysis The situation analysis will cover the following five topics: Business Environment The business environment for this opportunity can be easily discussed by using the analysis of PESTLE.
Each of the elements of this micro and macro analysis is described as below: Political With the assistance of the Australian government and the decline in solar panel prices, the industry of renewable has been developed. The sales and installation of solar panels were 8,000 PV systems in the year 2007 and in the year 2013, it grew to more than one million systems. According to the Australian PV Institute (2014), 11% of the population of Australia is using solar power to get electricity. Economic The economic advantage of this opportunity is actually its high demand by households.
The marginal costs of solar panels are close to zero and there is only the installation cost, which has to be paid at the start just. Unlike gas and electricity, there is no hassle of monthly billing. Social Even if renewable energy solar technology attracts people for lower costs in the long run, still there are people who are unwilling to buy this product. According to the psychological and economic evidence, there are some individuals who believe not to sacrifice for a short period of time and do not think about financial aspects in the long run.
Such people are more prone to think about their income to be spent on retirement product plans. Technology The changes and the arrival in the technology of solar are driving the economy of Australia at a fast pace. The growth in this industry may lead to a decrease in the rate of unemployment and to pull the electricity prices down. This growth can be more prosperous and flourishing if the updated technology is exercised.
The following graph shows the increase in employment due to the advent of this technology: Fig 1: Solar employment. Environmental There are chances of more environment-friendly activities in the upcoming years. According to Climate Commission (2014), by the end of the year 2050, 30% of the electricity needs in Australia will be impacted by solar PV.
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