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PESTEL Analysis for Strictly Solar Innovation

2134 words (9 pages) Essay in Technology

18/05/20 Technology Reference this

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Introduction

Strictly Solar Consumer Division Mission, Goals and Objectives

Reducing the U.S. carbon footprint and other affects that we as society have on our environment is what we are striving to accomplish with our technologically advanced solar systems that will aid in supplying our customers with clean natural, and renewable energy. With focus on our mission, by January 2021 we plan to launch consumer product SBU with its first solar-thread product; by the year 2027 sell the solar-thread product industrially and commercially across 50 states, and sell to consumers in all 50 states by 2030.

Note:  Your Internal Analysis was previously written in your second application forum and will not be repeated in the paper.  If you have new information to add, you can discuss it during the SWOT.

Strictly Solar PESTEL Analysis

Solar power is a natural, clean, and renewable resource that can significantly aid in the decreasing societies carbon footprint and using less of the natural resources that will eventually be depleted.  In this PESTEL analysis I will discuss the following factors that will are either aid or become challenges that we will have to overcome to ensure that the new SBU and its offering are maximized to the fullest. Within the PESTEL analysis technology, legal, politics, environmental, and economics are the most important elements that will determine the success of the SBU and the new products that evolve from it.

Technological trends and improvements

Technology has and will continue to evolve throughout time. Passive solar energy has been used as a form of light and heat since early mankind. In the 5th century B.C., the ancient Greeks designed their homes to capture the sun’s heat during the winter (Jones, 2012). Although this this type of technology has been around for some time, the continuous advancement in technologies have not affected this product because it is new and has yet to reach the market for industrial, commercial, or consumers usage. Like all advancements, the use of solar power for energy is no different from any other type of technology with time there comes change. Strictly Solar has made a name for themselves and have created a slight advantage on the competition when it comes to the offering that they are presenting (solar fabrics). They have a patented fabric that is light weight, require no wires, and if charged properly can emit energy for several hours as well as store energy for several weeks. Because this is a patented product, once it’s produced to meet the needs of the targeted market, manufactures and commercial building owners will see an opportunity to invest in this offering that will overall save them money and provide additional benefits from the government (which will be discussed later in this project). There are no near future threats to this product because of its patent. Other companies will have to design their product differently thus the patent protects Strictly Solar.

How have recent technological advances affected potential customers concerning needs/wants/preferences, access to information, the timing and location of purchase decisions, the ability to compare competing product offerings, or the ability to conduct transactions more effectively and efficiently (in the context of the solar related product offerings)?

Economic conditions, events, and trends

The economics of the solar power globally have been changing with time, a deeper look at the environment, and advancement in technologies. More and more countries are yielding to the potentials and benefits of using solar energy which overall helps the economic system. Because solar panels have been around for some time now, manufactures and commercial buildings have benefited more from the use of solar power vice consumers using this for their homes. The solar industry has created thousands of jobs globally; the United States have employed more than 150,000 people in 2014 which is a fifty-four percent increase over 2009 (Mozayeni, Pillai, Wang, 2019). Although the buying power of the manufacture industry increases, unemployment rate decrease, and carbon footprint of those companies decrease, there is still a needs for more companies that think like this and participate in this renewable energy source. Strictly Solar’s new product will further improve on the affects that using solar power due to manufacturing the new product, installation, sale, and management of the offerings.   

Environmental and natural resource trends and events

The United States weather patterns are not as severe as other countries which aids in the productive use of Strictly Solar fabrics when it comes to solar energy. Climate change affects economic development directly by causing significant damage to agriculture, water resources, ecosystems, infrastructure and human health. Human activities through the use of fossil fuels to produce energy have caused global warming to increase and have caused widespread air pollution (Yousif, 2018). Countries with a higher dust levels and increased rain fall will not have an effect on Strictly Solar’s fabric due to its ability to charge through indirect sun light (through dust and clouds). With this being said, Alaska would be a difficult place to maximize the potentials of Strictly Solar fabric due to the earth’s tilt and rotation around the sun. They have several months where there is no sunlight at all (moon light only). Overall the United State’s environmental conditions will have limited effect, if any, on the usage of the solar fabrics produced by Strictly Solar.

Political environment events and trends

Government have a say in what industries can do, build, where they can build at, and a number of other elements that can and will affect the manufacture and sale of renewable energy sources. Enacted in 1992, the corporate production tax credit (PCT) for renewable energy was historically the main policy tool employed to incentivize wind and solar energy in the United States (Gallagher, 2019). Not all are on board when it comes to climate change. Examples are former President Obama and President Trump. Mr. Obama wanted to ensure that we (government, society, all) do our part to save the earth and its environment for the sake of people decades come. On the other hand, President Trump has no belief in the fact of global warming and has put no effort into the aid of decreasing the carbon footprint. This affects sales and manufacture of Strictly Solar fabric. If manufactures are allowed to stay in their archaic ways and continue to use non-renewable resources they will eventually be diminished and the overall environment will be at a worsened states. Applying political pressure to manufactures will passively force them to make better choices when it comes to producing products. There is an upside for all when it comes to politics in the matter of renewable energy; there have been incentives to manufactures and individuals that have invested in renewable energy, promoting this and or making better deals for those that participate in renewable energy sources will have a greater effect on the sales of Strictly Solar products and fabric.

Legal and regulatory issues

Creating new products to be released to the public is never an easy task and companies must be aware of the laws, regulations, and or policies that their products will fall under. In the case of Strictly Solar and its new SBU, the solar fabric will definitely have some regulations that it must abide by. For the clothing articles that they plan to use, they must comply with the Federal Trade Act #485: 16 CFR Part 303 Rules and Regulations Under the Textile Fiber Products Identification Act; Notice of Proposed Rulemaking. This is a sample of a regulation that could impact the manufacture of the solar fabric products (outer garment: coveralls, pants, jackets, hats, foot covers, blankets).  As for the use of solar fabrics in the manufacturing and commercial industry; they will have to abide by the same regulations as solar panels.

SWOT Analysis

Strengths

Strictly Solar has continued on an upward path for the last seven years. Some of the strengths that have helped and will help in the future are the patented fabric, its ability to be used in many applications, and the positive reputation of the company. Mr. Robert Jones, developed the solar fabric as a challenge which shows his dedication to work and continuous erg to fulfill his educational need creates an atmosphere that we can do anything with our product and if not we will find a way accomplish any task that needs to be done to succeed. Being able to be applied to numerous applications, this increases the changes of profitability and need among the industries that will using it. Strictly Solar’s profit over the last seven years prove that it has a reputation that can be expound upon to great create a business to business and business to customer relationships.

Weaknesses 

With great strengths of Strictly Solar come one weakness that can derail the company for ever. Marketing, the company has no specific strategy to aid in sails. They are sailing their products based on their reputation. With proper marketing Strictly Solar could become a major mogul, with their patented solar fabric, among the renewable energy industry.  

Opportunities

From cold climates to manufactures and commercial buildings, Strictly Solar has a great chance to improve sales and overall bottom line of the company while supplying customers and consumer abroad with products that are technologically advances and aid in the decrease in the carbon footprint of companies around the world. Winter is four months and in certain location in the United States that time stretches into the other seasons. Example: there is occasional snow in the month of May in Great Lakes, IL. Labors and homeless people are great examples of people that will benefit from solar blanket and solar outer garments. When all objectives are in the near sight, branching out to international locations will be a great benefactor to the success of the company as well.

Threats

All industries have threats and regardless of Strictly Solar’s strengths and weaknesses they too will have threats some seen and unforeseen. One of the factors that greatly affect companies is competitors. Although Strictly Solar has a steady customer base, which is being tested regularly in the solar energy realm, the new SBU will have some time to itself on the market but inventors and scientist will challenge the products of the solar fabric shortly after its entry to the market. The unseen elements are the economy. The economy could be great one quarter and horrible the next, creating a slinky effect on the manufacture and sales of the solar fabric. Even if there are outstanding strategic plans in place, there is now way to plan for the economic environment.

Developing Competitive Advantage

Matching Capabilities to Opportunities

There is always room for improvement and Strictly Solar needs its fair share of help when it comes to improvement. Using the steady base customer base and positive reputation could convert their marketing weakness in to a strength. Because they have not had any real guidance in the marketing world a small jump may seem like a great leap. Creating the SBU improves the chances of marketing for the company as well as increase in customers that would be served. So by simply adding social media and using more conventional method of marketing (radio, tv) this will convert that weakness into a strength and better opportunities.

Competitive Advantage Strategy

Strictly Solar operates in product leadership when it comes to competitive advantage. The company had had very few major marketing strategies over the last seven year but they have continued to grow, well enough to add a brand new SBU. Bring Dr. Jones onboard with his patented solar fabric is an example of innovation and advanced technology. They are attempting broaden their horizon with this offering. Revising their current goals and mission will allow for to continue to produce superior product to their customers.

 

References

  • Jabar H. Yousif, Haitham A. Al-Balushi, Hussein A. Kazem, Miqdam T. Chaichan, “Analysis and forecasting of weather conditions in Oman for renewable energy  applications”, Case Studies in Thermal Engineering, Volume 13, 2019.
  • Jones, Geoffrey, and Loubna Bouamane. “‘Power from Sunshine’: A Business History of Solar Energy.” Harvard Business School Working Paper, No. 12–105, May 2012.
  • Kelly Sims Gallagher, Xiaowei Xuan, “Titans of the Climate: Explaining Policy Process in the               United States and China”, 2019.
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